sudler-sothebys-logo26 June 2009 ? The National Association of Realtors responds to problems with appraisals causing deals to be delayed or canceled altogether. Charles McMillan, 2009 NAR President will be in New York on Monday, June 29 meeting with the Deputy Attorney General and his staff who worked directly on the Home Valuation Code of Conduct (HVCC) adapted by Fannie Mae and Freddie Mac that went into effect May 1, 2009. He will be sharing Realtor® concerns and stories regarding the problems they have been experiencing and asking for their assistance in resolving problems related to the HVCC. On Tuesday, June 30th, McMillan will travel to Washington, D.C. to meet with the Director of the Federal Housing Finance Agency to discuss ways Realtors® can work with Fannie Mae, Freddie Mac and lenders to ensure that appraisals are accurate. NAR is working to find quick resolution to these issues. The Association is reaching out to its members to continue to share issues resulting from the HVCC with them.

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About Andrea Geller

Andrea Geller, Realtor® with Sudler Sotheby?s International Realty, specializes in residential real estate sales and marketing of resale properties and new construction homes. Acknowledged as an expert in the real estate industry, Andrea has been interviewed for industry related articles for print and online media including the Chicago Tribune, Crain's Chicago Business, Reuters, Bankrate.com, and Illinois Realtor Magazine. Andrea's commitment extends to the community as an active member of several professional associations. Her appointments include the Board of Directors of the Chicago, Illinois, and National Association of Realtors® and the Lakeview Chamber of Commerce. She markets herself under HOT PROPERTY®, an innovation in the real estate industry led by Chaz Walters that has been marketed since the 1990s. This unique real estate concept is always a step ahead of the industry providing marketing from cutting edge interactive exposure to targeted innovative advertising opportunities. Visit her at www.hotpropertychicago.com or 773.868.3090.

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2 Responses to “”

  1. Thomas Bealle Says:

    Dear Sirs:

    On May 1, 2009 the Home Valuation Code of Conduct (HVCC) ? the result of an agreement between the New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac went into effect.

    This in unquestionably the worst agreement and corporate policy to effect the housing industry since Fannie Mae and Freddie Mac began operations. To be compliant with the HVCC lenders can only accept appraisals from a pre-approved list of appraisers or appraisal management companies (AMC?s).

    The problems with the HVCC and AMC?s are:

    1) The AMC companies, which will be the only ones allowed to order appraisals, are subsidiaries of the nations largest title insurance companies and banks. This is in direct violation of anti-trust laws and FIRREA 12 CFR 34 banking laws. They will have a direct monopoly, not to mention a conflict of interest, as they will be able to dictate their unreasonable demands on appraisers.
    2) Appraisers are being asked to perform the same quality of work for1/2 or 1/3 their normal fees, which will result in poor quality of appraisals which is the problem the HVCC was established to solve.
    3) The cost to consumers has increased in higher appraisal fees to the AMC companies, who then pay less to the appraisers doing the work. This is a violation of RESPA laws.
    4) The HVCC creates huge communication problems, i.e. appraiser finds problem, reports to AMC, AMC reports to client, client responds back to AMC, AMC reports back to appraiser, appraiser corrects problem and reports back to AMC, AMC reports back to client, etc.,etc., etc. (this can take WEEKS before an adequate appraisal can be completed).
    5) AMC?s are not regulated. When they violate provisions of HVCC, who do we report to? Nobody, because there is no regulation in place.
    6) The success of this country has been based on the foundation of small businesses. This legislation is a direct hit to the small business person affiliated with the real estate market.

    There are many other problems with the HVCC which are too numerous to go over in this letter.

    I am writing to ask you to do everything in your power to repeal this awful piece of legislation, which can only contribute to the further decline in the real estate and financial markets.

    Sincerely,
    Thomas Bealle

  2. Angry Appraiser Says:

    signed up with an AMC last month.

    performed 15 appraisals.

    HAVE NOT BEEN PAID FOR A SINGLE DEAL YET……..

    MANY OF THE DEALS CLOSED ESCROW WEEKS AGO……

    IM ON FIRE!!!!!!!!!!!