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How about a SUCCESSFUL HVCC story......or TWO!!

Mortgage and Lending with Funky Quail Vintage

Well, within the last 72 hours, I have had 2 SUCCESSFUL appraisals fall within the HVCC guidelines!

They have both been delivered at/or above the purchase price, and we are "ROLLING ROLLING ROLLING!"


I thought with ALL THE NEGATIVE publicity it has been getting, I would give the HVCC some solid PUB!

Even though my friend Rowdy here is still a little doubtful, I am confident we can overcome this HVCC issue.

In the two examples I am about to give, one was ordered thru the WELLS FARGO system, and the other through the Bank of America system!  To clarify too, the system MIGHT work a little differently for a Mortgage Banker, Bank, Vs. how it works for us brokers!  However, this will give you all some insight as to HOW the system works, or as many will tell you, doesnt work!  :)


Story 1-

Wells Fargo uses a 3rd party company called RES DIRECT.   They can be found at www.res-direct.com

This appraisal was ordered, done, and uploaded in less than 7 days!

Our company, a broker, has to set up an account with them, then go online, and order the appraisal.  Here is where it gets sticky tho....the CUSTOMER HAS TO PAY ONLINE OR BY CREDIT CARD!   We are also given a "price" at this point right online so we know what to PREP the customer for!  However, we NEED THEIR CREDIT CARD INFO in order to order this!  Yikes!...yet another opportunity to get into trouble huh?

The 3rd party company, RES DIRECT, then "farms out" the order to one of 2 appraisal companies.  LSI, or Rels Valuation.  

We have to then FAX A COPY or email a copy, of the PURCHASE AGREEMENT to a completely DIFFERENT PHONE# or email address! 

We then give them a due date, or time frame in which we need the appraisal, and they go to work at finding an appraiser to get it done! 

All through the process, we get email updates or status reports sent RIGHT TO OUR EMAIL INBOX!  These are actually pretty SWEET, because we know when the order was received, contact was made, a day & time has been set, and when we can expect to have the appraisal uploaded into the system.  In addition, they put notes on the system to let us know if there is a problem, or any other kind of special "needs" or "requests" that they may have!  For example, listing or zoning information, special flood areas, etc..etc..Truthfully, in 20 years, I haven't received this much followup contact with ANY appraiser!

Wells Fargo then receives the appraisal directly, and at THAT POINT, if we have an issue with the value, we NOW CAN TALK TO THE APPRAISER as we know who it is, and we can follow the procedures put forth by the company on debating value or debating "issues" that came up with the appraisal!  Thought behind it is that value has already been established, and UNDUE INFLUENCE cannot affect the outcome!

Story 2

Still waiting for appraisal to come back, but was ordered 7 days ago, and appraisal was DONE 2 days ago, but the LISTING AGENT wont get back to the appraiser with questions regarding title & ownership!  Hence, we should have had it by now!

Similar to Wells Fargo, Bank of America allows us to order the appraisal online!  In fact, there is a dropdown tab RIGHT within our companies PIPELINE on their website!  We click on it, type in a whole bunch of information, and again.....CALL THE CUSTOMER AND GET THEIR CREDIT CARD information, and bang....the appraisal is ordered!

ONE HUGE difference here though is that we as a LENDER, STILL HAVE TO GO IN once the appraisal is done, and UPLOAD the appraisal to the underwriter assigned to the file!  Kinda dumb don't ya think that a company as LARGE as Bank of America cannot retrieve their own appraisals??  I think so...

The ordering system was a little easier than that of Wells Fargo, and again, we received followup emails every step of the way!

In BOTH CASES I am fairly impressed & not bad turn time!

In Summary 

 Much like LENDER OVERLAYS on loan programs, there are also what I refer to as HVCC overlays as well!  In other words, NOONE truly understands the "rules" regarding HVCC compliance so many just say talking is a "no no" and leave it at that.  It is the midsize Banks &  Mortgage Bankers etc...that MAY incorporate some of the "new" changes, but companies like Wells and others tend to set the standard!  It all truly depends on if the FUNDER/LENDER wants to take or share the risk!



The HVCC is not something to be afraid of, but you DON"T have to be happy about it, or embrace it either!

Reminder#1.- FHA,VA, & USDA LOANS are NOT SUBJECT to HVCC rules, period!

Reminder#2. -   You can talk to the appraiser (both lender & realtor) AFTER the appraisal is done and value has been established and accepted. 

Reminder #3.- There is a "challenge" system in place at nearly ALL 3rd party HVCC companies!  Learn it, ask questions about it, and follow the rules to a T!!!   

Reminder #4.-  Always have the words "UNDUE INFLUENCE" in the back of your mind!  If you "THINK" what you are saying is wrong, it probably is!

Thanks for reading & Keep selling! 



As always, I welcome your concerns,comments,issues and suggestions!  Darin@Osmwi.com

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Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

Hey Bucky I subscribed to you blog in order to bask in your wisdom and maybe then someday I will figgir this business out.  

I just ordered my first HVCC so we will see how it goes.  Specializing in FHA keeps me away from all the fancy stuff and life is good.

Best regards,

Bill Ladewig

Jul 31, 2009 12:46 PM
Mark MacKenzie
Phoenix, AZ

It is refreshing to see that every now and then something goes right with this complicated appraisal process.  :)

While I know change is rarely easy to adapt to, it still appears that this new HVCC process has some holes in it.

Jul 31, 2009 03:34 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Oh those tardy agents will putaa wrench in the otherwise smooth running works every time...time is of the essence is not just a term for buyers and sellers...agents need to heed it as well.

Jul 31, 2009 11:25 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Yippee!  That is great news, good for you!  Yes, some good news is always welcome...ahhhh...the good ol days!

Aug 01, 2009 01:11 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Bill-  You are awesome!  I loved the banter with you on the other guys blog..I wont mention!  VERY kind of you to subscribe and I totally appreciate it!   I try to ALWAYS blog fact, story, and funny!  Most of the time I am updating people on Loan or TECHNICAL information because these SMALL changes are impacting loan after loan!!

Thanks again!  -  your new pal....Buckster!

Aug 01, 2009 07:57 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Mark-  YOU ARE RIGHT!  Funny thing is that the good ole stories, and positive things, tend to get the same # of readers, but fewer COMMENTORS sadly....HVCC still DOES have holes in it, but undertanding the process from a LENDERS perspective is VERY important from both a contact standpoint, and a "system" standpoint!  It is very easy for some folks (realtors & lenders) to throw the HVCC "under the bus", and when it comes right down to it...sometimes it isnt an HVCC issue!  people blog on here ALL the time about how HORRIBLE the new rules are...but in truth, when you FIND OUT EVERYTHING about the deal, it puts it into a completely different perspective@   Thanks so much for commenting Mark!  I appreciate it! -  D

David & Sally-  Yep, for the first time for ME in a long time, I have a realtor not calling ME back with information we need to move forward!  WOWSERS HUH??   in this enviroment...??   She must be "pooping " dollars huh?  LOL   Im glad I work with HIGH PRESSURE realtors!  :) -  D


Aug 01, 2009 08:07 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Whatever dude......I can't stand HVCC for all of the right reasons....but hey....hearing a good story like you have has encouraged me to not get my machine gun out and go postal.  FHA is really the bomb, b/c you'll never have an HVCC story......or at least until FHA goes the way of HVCC....

Aug 01, 2009 08:10 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

KJ-  YEP!  YIPPEEE!!!   As far as the good ole days....where are those??  What are those??  THEY WILL COME BACK!  I know they will!  -  Darin!  Thanks for visting ! 

Aug 01, 2009 08:15 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Larry B-   I know...THE FHA LOANs are exploding, and there is a REASON for it!  They are easier, you can pick the appraiser, TALK to the appraiser thru the ENTIRE process, you dont have Wisconsin appraisers doing illinois loans and so forth, and overall it is a better product!  Strange thing TODAY Though... Look at pricing,the two are priced almost exactly the same!  Alot of our customers are putting big chunks of change down, and have people advising them that they NEED & SHOULD HAVE a conforming loan!  I just go with it....when they want an FHA loan, you know where I take it!  :)    I just thought a positive story and people understanding the process we GO THRU would help the overall attitude towards it!  I get sick of the negative stories and all the "piling on" here in the RAIN when someone blogs about something bad!  -  Take care uncle larry!  -  Bucky

Aug 01, 2009 08:21 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

Darin,  You are a CLOWN! I just took the time to read through the first page of your blog.  2 things are pretty obvious...you know your stuff and you have fun doing what you do! It doesn't get much better than that! :)

Aug 01, 2009 10:40 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


Two at or above!  Whoa, baby!  Now when are you coming to Tucson?!

Mike in Tucson

Aug 02, 2009 12:18 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Shannon-  YOU are funny too!!!  Thank you for reading!  I do appreciate it!  I do SOME funny blogs, but mostly informative ones in an effort to help Realtors!  Take care, and if you ever need a good lender partner, tt Gerry Suarez!  He is here in the RAIN!  He is awesome!  -  Take care...Darin

Aug 03, 2009 07:56 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Yo Miguelito!

Glad things are going so well for you at SunStreet!  Not coming to Tucson till xmas now...but def will hook up!  I think the HVCC hurts in the areas that are hurting, and certainly doesnt HELP in the areas that are not!  :)  :(

VEGAS I saw, was FORECLOSURE capital of the US now...cannot make Rene Burrows very happy, that's for sure!


Aug 03, 2009 09:29 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

OK, I'm happy to say I finally had a successful close that used HVCC. No problems with the appraisal on time or price. It only took a few months!

Todd Clark - www.LivingBeaverton.com

Sep 08, 2009 10:25 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Todd, that sounds good!  I think they are FINALLY getting the system down alot better!  Prices are being adjusted for as well, as the consumer is figuring out that it is the same no matter where you go...or, within a few bucks!

We havn't had a TIME issue here, but recently I saw an appraisal that had to go BACK to the 3rd party company...in this case LSI....3 x to correct errors made by the APPRAISER! 

I couldnt believe it! 

Anyway, thanks for commenting as always!   Darin

Oct 07, 2009 08:06 AM