H.R. 3044 Aims to Halt HVCC?Your Support Is Needed

August 21, 2009


Unfortunately you can't fix broken items with good will and flowers...you have to work.

Unfortunately you can't fix broken items with good will and flowers...you have to work.

A new bill has recently been proposed entitled H. R. 3044 that will put an 18-month moratorium on Home Valuation Code of Conduct (HVCC). This new bill falls under HERA, 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, 2009.

Many real estate brokers and mortgage brokers have found issues with the HVCC program. Some of the problems include increased loan rates and loan fees all related to extending rate locks. These rate locks are being broken due to increased turn-around times in appraisals and underwriting. They are finding decreased quality of appraisals. Not to mention many quality appraisers have left the industry all together due to loss of income.

The new bill that has been proposed is calling for an 18-month moratorium on the HVCC program. The moratorium will give Housing and Urban Development (HUD) time to re-evaluate the program and make revisions to it. It will also allow the average consumer time to be able to take advantage of historically low interest rates. However, an 18-month moratorium will not keep appraisers from applying “declining markets adjustments” when they are obviously evident and provable through the Multiple Listing Service. The 18-month moratorium will not keep appraisers from applying the mandated “listing-to-sales-price-ratio” to the three current listings they are now required to use in their reports. Appraisers will still follow the Uniform Standards of Professional Appraisal Practice, also known as USPAP and its guidelines.

How You Can Help Fix HVCC

The moratorium will buy time but will it help fix the declining real estate market? What will happen after the 18-month moratorium? Here is a site that explains HVCC further and has a petition for H.R. 3044. You can also call and/or write your Representative and your Senators and voice your support of H.R. 3044 and your opposition to HVCC.

You can also help by passing this post or the petition along to everyone you know who has a stake in this debate: real estate professionals, buyers, sellers, potential buyers, potential sellers, mortgage professionals?anyone who owns a home basically should be interested in this.

We would like to thank Arne Hendriks for sharing today’s photo via the Creative Commons License.
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About Katie Anderson

Katie Anderson is a respected and successful broker at Sudler Sotheby's Realty as well as a certified appraiser. She specializes in representing clients who purchase and sell condominiums, town homes, single-family homes and income property in the Chicago land area. In her small amount time in the real estate game (she became an agent in 2003) she has assisted in excess of 400 deals and over $200 million in sales and continues to use her skills as a certified appraiser. Katie resides in Chicago's Bucktown neighborhood with her loving husband and 4-year-old-daughter, where she spends much of her spare time with her family and friends. You can contact her at katie@thechicago77.com or at andersonbraack.com

View all posts by Katie Anderson

2 Responses to “H.R. 3044 Aims to Halt HVCC?Your Support Is Needed”

  1. Leroy Thomas Says:

    We need your support on HR 3044 to put an 18 month moratorium on the HVCC.
    The effect of the HVCC has been devastating to me, my business and appraisers all across the country.

    I became an appraiser out a need to survive. I had a career in aerospace. For 15 years I worked for Hughes Aircraft until my job was outsourced and I was laid off. I kicked around for a few years after with each job going away to some foreign contingency.

    I went into real estate appraising as a means of being self-employed in and honorable profession, something I enjoyed doing and was able to support my family. That was six years ago. I was making it, just getting by, but making it until HVCC.

    HVCC has devastated my business and my life. Overnight, my fees were cut in half. I went from getting $300 to $400 an appraisal to getting around $200 per appraisal. I went from doing 2 or 3 reports per week and making enough income to support my family and pay my mortgage to having to do 6 to 10 reports per week and not being able to make a reasonable income.

    The AMC’s came out of nowhere. I had heard of them, and the horror stories of unbelievable lows fees and impossible turn time requirements. Now, because of HVCC they are the only game in town and unregulated. They pit appraisers against each other, under bidding appraisal jobs just to get work, just to survive. The AMC’s charge their clients increased fees and take 60-70% just for brokering. How are they allowed to this. Then they want 24-48 hour turn times, which most time are met, and take as long as 30-60 days to pay the appraiser for their work.

    With all the news and debate going on about the pros and cons of HVCC. I have not heard much at all about the plight of the appraiser.

    My expenses and overhead have not changed. My fees have been cut in half. My workload has to be double what its was before HVCC in order to make ends meet. Well, my ends are just not meeting. I can’t pay my mortgage, I can’t buy groceries. I’m quickly losing the battle to survive. If I don’t make it through this, there’s nowhere for me to go but in the streets, homeless.

    We need your attention and support on HR 3044. Can you help us?

    Leroy Thomas
    Certified Real Estate Appraiser (AR035358)
    508 W 64th St
    Inglewood, CA 90302
    (310) 339-1525


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