Comments on: HVCC Causing Transaction and Economic Problems http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/ Comprehensive Chicago Real Estate Information Tue, 31 Jan 2012 13:18:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Stanley Rodreguez http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-2457 Stanley Rodreguez Tue, 13 Jul 2010 18:36:32 +0000 http://www.thechicago77.com/?p=1689#comment-2457 The company brokerages network will provide you with access to a large pool of individuals who've the details about companies for sale and buyers or investors looking for any organization venture. By making good use from the info you've, you may be cutting a offer and make a handsome profit out from the transactions. The company brokerages network will provide you with access to a large pool of individuals who’ve the details about companies for sale and buyers or investors looking for any organization venture. By making good use from the info you’ve, you may be cutting a offer and make a handsome profit out from the transactions.

]]> By: Joanne http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-1187 Joanne Wed, 21 Oct 2009 23:39:33 +0000 http://www.thechicago77.com/?p=1689#comment-1187 Just wait until no new appraisers come into this business and see what kind of backlog will happen and costs will skyrocket out of control. How does a trainee get business? Everyone wants certified appraisers now. As a real estate professional, I see the devasting affect this is having already. From lenders owning their own AMC companies and having their own staff appraisers....what is the difference? They are totally controlling the outcome. How is it possible a bank can own an AMC company? How is this an armslength transaction? This new law has put at least half of all appraisers out of business and wondering how they can pay their mortgage. Why should they work for half fee and then have to negotiate lower fees with the AMC companies. My customers are paying more money and getting less service. Then, the insult of all time is that the lender charges the customer a review appraisal fee for reviewing the "armslength" appraisal ordered? Everyone hates it....the appraisers, the customers, the real estate professionals, and the lenders. This is our government at it finest! Think about your own business. How would you like it if the government walked in and told you from now on you have no customers effective tomorrow.....from that point forward, you will make half of what you were making before, if your lucky.....and could have no contact with your customers? You can try and get approved with the new company in charge with no certainty you ever will get business from them. Sounds far fetched, doesn't it! Just how many appraisers now will stay in this business with this kind of foul play. While this was probably intended to be a good thing, it has really backfired. The appraisers should have been able to ban together in a network and have it be a true armslength transaction without the heavy fees associated. This makes me sick! Just wait until no new appraisers come into this business and see what kind of backlog will happen and costs will skyrocket out of control. How does a trainee get business? Everyone wants certified appraisers now. As a real estate professional, I see the devasting affect this is having already. From lenders owning their own AMC companies and having their own staff appraisers….what is the difference? They are totally controlling the outcome. How is it possible a bank can own an AMC company? How is this an armslength transaction? This new law has put at least half of all appraisers out of business and wondering how they can pay their mortgage. Why should they work for half fee and then have to negotiate lower fees with the AMC companies. My customers are paying more money and getting less service. Then, the insult of all time is that the lender charges the customer a review appraisal fee for reviewing the “armslength” appraisal ordered? Everyone hates it….the appraisers, the customers, the real estate professionals, and the lenders. This is our government at it finest! Think about your own business. How would you like it if the government walked in and told you from now on you have no customers effective tomorrow…..from that point forward, you will make half of what you were making before, if your lucky…..and could have no contact with your customers? You can try and get approved with the new company in charge with no certainty you ever will get business from them. Sounds far fetched, doesn’t it! Just how many appraisers now will stay in this business with this kind of foul play. While this was probably intended to be a good thing, it has really backfired. The appraisers should have been able to ban together in a network and have it be a true armslength transaction without the heavy fees associated.
This makes me sick!

]]> By: H.R. 3044 Aims to Halt HVCC?Your Support Is Needed | The Chicago 77 http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-1011 H.R. 3044 Aims to Halt HVCC?Your Support Is Needed | The Chicago 77 Mon, 24 Aug 2009 14:58:15 +0000 http://www.thechicago77.com/?p=1689#comment-1011 [...] or otherwise known as Housing Economic Recovery Act. Within HERA is the HVCC. The HVCC has been the center of discussion in the real estate market since its enactment on May 30, [...] [...] or otherwise known as Housing Economic Recovery Act. Within HERA is the HVCC. The HVCC has been the center of discussion in the real estate market since its enactment on May 30, [...]

]]> By: Gary Denny http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-993 Gary Denny Sat, 22 Aug 2009 02:43:57 +0000 http://www.thechicago77.com/?p=1689#comment-993 As an appraiser, I have to say that the HVCC "as written" is perhaps the worst thing that has happened to the residential appraisal industry...EVER! The regulation may be well intended, but the negative effects it is having on residential appraisers is at a crisis level! The new regulation essentially forces lenders into ordering appraisals through intermediaries known as Appraisal Management Companies (AMC's). FHFA claims that lenders aren't required to use an AMC, but what other choice do they have without placing their transactions in jeopardy of being kicked back? FHFA is generating statements and FAQ's attempting to portray there is a lot of "mis-information" going around regarding the HVCC, but the only mis-information is that this regulation "as written" is good for appraisers! You would be hard pressed to find an appraiser that thinks the HVCC has been great for a their business. The government has effectively stolen clients from local appraisal companies and handed them to their competition, the Appraisal Management Companies. This action violates every concept of the free enterprise system. Seems to me the New York Attorney General should be thrown in jail for committing a major white collar crime! I am doubtful appraisers are opposed to the concept of an intermediary. As a matter of fact, many of the provisions in the HVCC are very pro-appraiser. The problem appraisers have is the AMC's are making their living at the expense of the appraisers. It is not uncommon for an AMC to take as much as 50% of the fee directly out of the appraiser's pocket. This parasitic relationship is having a devastating affect on appraisers and local appraisal businesses. The fees paid by the AMC's are simply insufficient to support an adequate middle class lifestyle in many metropolitan areas. As a result, many of the best qualified/most experienced appraisers are leaving the industry. These are the same people and companies that have been the backbone of the appraisal industry for years. It doesn't take a master's degree in economics to understand you are not going to attract the best qualified/most competent appraisers if you aren't willing to pay them a sufficient wage. I really am concerned for the future of my profession. An appraisal performed by a well trained, experienced appraiser is still the most reliable indicator of value available. Appraisers are the public's best defense against getting in over their heads. Appraisers are also the public's defense against bank failures due to over-valuation of collateral. Seems to me the general public should be very concerned about what is going on here! For more information on what is happening to the appraisal industry as a result of the HVCC, please read my article at: http://sites.google.com/site/testingjustfor/ I truly hope for the future of the appraisal industry, that the poorly crafted portions of this regulation can be corrected. Gary Denny President of Woodbridge Appraisal Service President of the Northern Virginia Chapter of the National Association of Independent Fee Appraisers (NAIFA) As an appraiser, I have to say that the HVCC “as written” is perhaps the worst thing that has happened to the residential appraisal industry…EVER! The regulation may be well intended, but the negative effects it is having on residential appraisers is at a crisis level!

The new regulation essentially forces lenders into ordering appraisals through intermediaries known as Appraisal Management Companies (AMC’s). FHFA claims that lenders aren’t required to use an AMC, but what other choice do they have without placing their transactions in jeopardy of being kicked back?

FHFA is generating statements and FAQ’s attempting to portray there is a lot of “mis-information” going around regarding the HVCC, but the only mis-information is that this regulation “as written” is good for appraisers! You would be hard pressed to find an appraiser that thinks the HVCC has been great for a their business.

The government has effectively stolen clients from local appraisal companies and handed them to their competition, the Appraisal Management Companies. This action violates every concept of the free enterprise system. Seems to me the New York Attorney General should be thrown in jail for committing a major white collar crime!

I am doubtful appraisers are opposed to the concept of an intermediary. As a matter of fact, many of the provisions in the HVCC are very pro-appraiser. The problem appraisers have is the AMC’s are making their living at the expense of the appraisers. It is not uncommon for an AMC to take as much as 50% of the fee directly out of the appraiser’s pocket. This parasitic relationship is having a devastating affect on appraisers and local appraisal businesses.

The fees paid by the AMC’s are simply insufficient to support an adequate middle class lifestyle in many metropolitan areas. As a result, many of the best qualified/most experienced appraisers are leaving the industry. These are the same people and companies that have been the backbone of the appraisal industry for years. It doesn’t take a master’s degree in economics to understand you are not going to attract the best qualified/most competent appraisers if you aren’t willing to pay them a sufficient wage.

I really am concerned for the future of my profession. An appraisal performed by a well trained, experienced appraiser is still the most reliable indicator of value available. Appraisers are the public’s best defense against getting in over their heads. Appraisers are also the public’s defense against bank failures due to over-valuation of collateral. Seems to me the general public should be very concerned about what is going on here!

For more information on what is happening to the appraisal industry as a result of the HVCC, please read my article at: http://sites.google.com/site/testingjustfor/

I truly hope for the future of the appraisal industry, that the poorly crafted portions of this regulation can be corrected.

Gary Denny
President of Woodbridge Appraisal Service
President of the Northern Virginia Chapter of the National Association of Independent Fee Appraisers (NAIFA)

]]> By: Futher Guidance for Lenders on HVCC | The Chicago 77 http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-816 Futher Guidance for Lenders on HVCC | The Chicago 77 Tue, 28 Jul 2009 16:26:26 +0000 http://www.thechicago77.com/?p=1689#comment-816 [...] HVVC’s main purpose all along has been to protect the appraiser and the quality of appraisal reports. The code was to [...] [...] HVVC’s main purpose all along has been to protect the appraiser and the quality of appraisal reports. The code was to [...]

]]> By: Freddie Mac and Fannie Mae Issue Clarifications to HVCC | The Chicago 77 http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-797 Freddie Mac and Fannie Mae Issue Clarifications to HVCC | The Chicago 77 Fri, 24 Jul 2009 13:26:55 +0000 http://www.thechicago77.com/?p=1689#comment-797 [...] and its members, Freddie Mac and Fannie Mae this week issued new guidance to all lenders on the Home Valuation Code of Conduct (HVCC). The letter issued on July 22, 2009 by the Federal Housing Finance Agency (FHFA) clarifies [...] [...] and its members, Freddie Mac and Fannie Mae this week issued new guidance to all lenders on the Home Valuation Code of Conduct (HVCC). The letter issued on July 22, 2009 by the Federal Housing Finance Agency (FHFA) clarifies [...]

]]> By: Appraisers Must Be Local or Disclose According to USPAP | The Chicago 77 http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-769 Appraisers Must Be Local or Disclose According to USPAP | The Chicago 77 Fri, 17 Jul 2009 14:53:48 +0000 http://www.thechicago77.com/?p=1689#comment-769 [...] writing an article about the HVCC program and how it is affecting the home buying process I received an e-mail from an appraiser from [...] [...] writing an article about the HVCC program and how it is affecting the home buying process I received an e-mail from an appraiser from [...]

]]> By: John Roper http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-704 John Roper Thu, 02 Jul 2009 19:28:01 +0000 http://www.thechicago77.com/?p=1689#comment-704 I can't believe what I am reading! If a realtor is having to "shop" three different appraisers until they find one who will "make" the value, then this is mortgage fraud! This is exactly what got us in the mess we are in now! Wake up people! The realtors, lenders, and builders are bankrupting this country and now its the appraiser's fault, because they won't "make" the values work. If 2 out 3 appraiser's are telling you that the property isn't worth what your paying, then you are trying to pay above market price for the property! If your agent insist on trying to find an appraiser who can make the deal work, then your realtor (assuming its your buying agent and not the seller's agent) is not doing you any favors. I can’t believe what I am reading! If a realtor is having to “shop” three different appraisers until they find one who will “make” the value, then this is mortgage fraud! This is exactly what got us in the mess we are in now! Wake up people! The realtors, lenders, and builders are bankrupting this country and now its the appraiser’s fault, because they won’t “make” the values work. If 2 out 3 appraiser’s are telling you that the property isn’t worth what your paying, then you are trying to pay above market price for the property! If your agent insist on trying to find an appraiser who can make the deal work, then your realtor (assuming its your buying agent and not the seller’s agent) is not doing you any favors.

]]> By: Tommy Bealle http://www.thechicago77.com/2009/06/hvcc-causing-transaction-and-economic-problems/#comment-689 Tommy Bealle Tue, 30 Jun 2009 15:37:13 +0000 http://www.thechicago77.com/?p=1689#comment-689 The HVCC is the worst piece of policy making since Fannie Mae was started. I cannot believe that one man (Andrew Cuomo) can do this much damage to the housing industry. Please keep up the good work and keep the public aware of the harms that the HVCC has created. The HVCC is the worst piece of policy making since Fannie Mae was started. I cannot believe that one man (Andrew Cuomo) can do this much damage to the housing industry. Please keep up the good work and keep the public aware of the harms that the HVCC has created.

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