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HVCC

By
Real Estate Broker/Owner with Rob Gorman / Town Green Real Estate

HVCC seems to be headed for the scrap heap!

I have been following the debates for some time now as to whether the HVCC will be recognized as an ineffective tool to keep appraisers from being infuenced in their duties.

I signed the petition put forth by Think Big Work Small which was hand delivered to Andrew Cuomo last week. They requested input to go back to the Attorney General with a solution as a relacement for HVCC or the like.

My opinion is simply to enforce the tools which already exist.

If an appraiser is influenced by someone to inflate the value and it can be demonstrated that that was the case, the lender(s) involved place the appraiser on their list of appraisers whose work is not acceptable.

The lender then can take further steps such as reporting it to the FBI.

Maybe I'm too simplistic in my view of ethics. If I do something which I know violates the ethics of my profession and then continue to do so, doesn't that become an advertisement of my willingness to look the other way? Wouldn't I in that situation rationalize that other people have done it too? It is appalling to me that we as a society have allowed the "end to justify the means".

I look forward to a time when practitioners and regulators do their jobs with honor again!

There is no shame in saying "It wouldn't be proper for me to do that!"

 

Eric J
Eric J - Dream Home Financing - Freehold, NJ
Dream Home Financing

I agree. This is over-regulation. It is adding delays and costs.

 

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Nov 29, 2009 12:34 AM
Julie Chroust
Julie Chroust, Senior Loan Officer Bay Equity LLC - Walnut Creek, CA
(925) 381-1481 jchroust@bayeq.com

Good Post, it sure seem like the new regulations have only slowed the closing process down.. NOTHING else. 

Nov 29, 2009 12:45 AM
Tom Schoenbeck
Keller Williams Realty at the Beach - Rehoboth Beach, DE

Some lenders are still circumventing the HVCC process, and doing it legally. The HVCC rules indicate a lender must go through a 3rd party, someone who is not directly connected with the transaction, such as an AMC. So, what are some lenders doing? They use a receptionist in the office, someone who is not connected with the loan, and having them contact appraisers for service. This may comply with the law, but hardly with the spirit and intent of the law. It does not matter how many regulations are passed, there will be unscrupulous practitioners out there that will find the proverbial loopholes and bend every rule there is to fit in their framework of doing business.  

Nov 29, 2009 06:17 AM
Anonymous
Anonymous

Tom

I agree that it is impossible to have a system that will work for everyone.

Even with HVCC done through a third party AMC, there is still the opportunity

to have an unscrupulous player meet the appraiser at the property to try

and influence them.

The issue here is who stands to gain the most, a regulator or "good guy" or the

unscrupulous player "bad guy" who bends and breaks the rules.

 

 

Nov 29, 2009 06:29 AM
#4