Buyers Get Slapped Around with Terrible New Appraisal HVCC Rules and AMCs
Posted by Jay Seville on Wednesday, June 10th, 2009 at 11:09am.Buyers Pay More $$$ for Slower and Less Accurate Appraisals With New HVCC Rules and AMCs--DRAMA!
So the new HVCC (home valuation code of conduct) came out May 1, 2009 and have had a profoundly negative impact on consumers, appraisers--at the least the best, most established ones, real estate agents and sellers. yes you heard that correctly--sellers are being hurt by this overreaching by a federal bureaucrat Andrew Cuomo who himself received big $$$ from AMC (appraisal management company) interests.
Now most large lenders are being required to use AMC--appraisal management companies--to get appraisals done. The AMCs are a 3rd party--an extra layer of bureaucracy for consumers to pay for and wait for--through which lenders now order appraisals. The lender contacts the AMC who then delegates the appraiser to whoever is next on the list. This is to prevent lenders from directly hiring and influencing appraisers. Aw, isn't that special--Freddie/Fannie are protecting buyers from lenders unduly influencing appraisals/appraisers? Well in case you hadn't noticed, subprime loans and bloated appraisals stopped about a year and half ago. 
Now lots of appraisals come in low--often to the point of absurdity--so these new rules are endeavoring to protect consumers against a non-problem. Banks are protecting themselves now with very stingy appraisals it seems--not that they control appraisals but it has definitly changed on its own.
Specs on How Consumers Are Being Screwed by AMCs and HVCC rules
- now buyers pay $425-450 for their appraisals--usually up front now--rather than $350
- buyers can no longer--at least almost never--take their appraisal they already paid for to a new lender. Instead they'll have to order a new appraisal with their new lender if they change their minds....
- instead of getting that appraisal in a week or so now buyers and sellers get to wait 2-3 weeks for an appraisal to get done
- often the appraisal is sloppy and needs to be corrected from admin/form errors, etc. or the appraiser has to work on file again and turn it in
- in the process of fixing the appraisal more time is lost
- many of the appraisers are new who are working for cheap because the appraisers are now being paid much less $$$ for an appraisal so the most experienced and most productive appraisers are in many cases leaving the business or refusing to sign on with AMCs--appraisal management companies who have to find appraisers who will work for a much lower fee
- these appraisers who are working for such reduced fees are often new, inexperienced or not all the way licensed yet
- these appraisers associated with these AMCs are often from far away and know nothing about your local real estate community and the nuances thereof in terms of home values so often the appraisals are not accurate period compared to before
- again all of this is costing so much more money to buyers and now it takes much longer to get the appraisal and you just cross your fingers hoping this appraiser--working for much less $$$ to get referred the appraisal by the AMC--does it right the 1st time....
- lenders cannot communicate with the appraisers so coordinating and solving problems takes FOREVER!!!!!!!! It slows down the process so much and is mega frustrating from a selling agent's (buyer agent) perspective as my buyers are being hit in a negative way by these new screwels--I mean rules.
- since lenders can no longer FIRE appraisers for bad or late work, there is no accountability. This is at the heart of the problem. Lenders used to have relationships with the best appraisers who were most professional. Now those are wasted and lenders cannot demand excellent work anymore. Of course quality was doomed to go down.
Examples of HVCC Chaos in my Personal Business
Appraiser shows up finally after at least 2 weeks to do appraisal. The listing agent and Seller are angry at me because appraisal has not been done yet and he needs money to buy his new co-op in NYC. Finally appraiser comes by. A week later still no appraisal turned in. In fact 10 days after the fact we have to get another appraisal done because the first appraiser is missing in action period---even the AMC that hired him has no idea what happened to him....freaky, eh?
I was under contract personally on a home a few doors down from my best friend. The appraisal is done--at least we thought. And very close to closing we find out the appraisal was not done--weeks later mind you--because water was not turned on during his first trip out there. Well he could have let us know there was a problem sooner than right before closing. Then we're supposed to be closing on Friday and he turns in a photo with broken window in master bedroom the day before. With an FHA loan that does not fly. The window must be fixed before the loan can be funded. My gosh!##@!#!!! you freakin' schumuck!!!! You've had this photo for a month and you dump it on us--me, my wife, my lender and the sellers--the day before we're scheduled to close???????
In the past--before these idiotic HVCC rules by bureaucrats who as a class helped us enter the subrime mess in the 1st place--the appraiser would have called the lender immediately a month before and let him know there was problem and it would have been fixed. That's how the communication was before--efficient and problems were solved in real time so that everybody--buyers, sellers, agents, lenders--were much better served. Now lenders do not communication with appraisers and everything moves at a snail's pace....
YouTube video on HVCC rules by lender in Washington
More examples of the new chaos can be found here:
HVCC--I'm Not Making This Stuff Up
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Share37 Responses to "Buyers Get Slapped Around with Terrible New Appraisal HVCC Rules and AMCs"
jay wrote:
This is exactly what this piece is about--the chaos that has erupted in the appraisal industry and its real life impact on people's lives. Frank, there are thousands and tens of thousands of other consumers going through this terrible service right now. Maybe you should send Andrew Cuomo a thank you note since he played the big role in getting this new policies in place.
Your lender/loan officer should be calling Landsafe directly to complain that they are not being served well. In the middle of some appraisal issues the main lender I work with Flagstar Bank was on the phone smacking the AMC around--and threatening to terminate the account with that AMC--appraisal management company. So your lender should be aggressive on making sure you don't have another round of no-show....
My lender's info--Flagstar Bank--is on the blog post:
http://www.justnewlistings.com/arlington-virginia-blog/lender-drama-appraisals-and-what-you-can-do-to-prevent.html
This is exactly what this piece is about--the chaos that has erupted in the appraisal industry and its real life impact on people's lives. Frank, there are thousands and tens of thousands of other consumers going through this terrible service right now. Maybe you should send Andrew Cuomo a thank you note since he played the big role in getting this new policies in place.
Your lender/loan officer should be calling Landsafe directly to complain that they are not being served well. In the middle of some appraisal issues the main lender I work with Flagstar Bank was on the phone smacking the AMC around--and threatening to terminate the account with that AMC--appraisal management company. So your lender should be aggressive on making sure you don't have another round of no-show....
My lender's info--Flagstar Bank--is on the blog post:
http://www.justnewlistings.com/arlington-virginia-blog/lender-drama-appraisals-and-what-you-can-do-to-prevent.html
Posted on Thursday, June 11th, 2009 at 9:19 AM.
Brad Ferguson wrote:
HVCC has ruined my business as well as many other hard working, ethical appraisers. This program is nothing more than a knee jerk reaction to the sub-prime meltdown. Disconnect HVCC, don't make 100%+ loans and make lenders responsible for the paper they sell to Fannie and Freddie.
HVCC has ruined my business as well as many other hard working, ethical appraisers. This program is nothing more than a knee jerk reaction to the sub-prime meltdown. Disconnect HVCC, don't make 100%+ loans and make lenders responsible for the paper they sell to Fannie and Freddie.
Posted on Tuesday, June 16th, 2009 at 3:35 PM.
Rick Phillips wrote:
Jay--
What you and the guy in the video are touching on is the accountability of the appraiser in a business relationship with the banks. That is, there was no incentive for your appraiser to in that instance to move quickly or notify you of any problems causing him a delay. He's signed up on a list and will get the business regardless.
I'm an appraiser, and I've been asked to sign up on a few of those lists. In most cases, I've been asked to reduce my fee, and in most cases I've declined the offer.
I sort of feel that you get what you pay for, and AMCs offering reduced fees indeed are getting a bunch of crap right now.
I'd recommend in the cases where your clients are going to go through the FHA program is to use a lender who has some relationship with the appraiser. The HVCC does not apply to FHA.
Jay--
What you and the guy in the video are touching on is the accountability of the appraiser in a business relationship with the banks. That is, there was no incentive for your appraiser to in that instance to move quickly or notify you of any problems causing him a delay. He's signed up on a list and will get the business regardless.
I'm an appraiser, and I've been asked to sign up on a few of those lists. In most cases, I've been asked to reduce my fee, and in most cases I've declined the offer.
I sort of feel that you get what you pay for, and AMCs offering reduced fees indeed are getting a bunch of crap right now.
I'd recommend in the cases where your clients are going to go through the FHA program is to use a lender who has some relationship with the appraiser. The HVCC does not apply to FHA.
Posted on Sunday, June 21st, 2009 at 3:41 PM.
GWS wrote:
King Cuomo has succeeded in screwing up the real estate market again. Lets' not forget when he was in charge of HUD at the age of 23. Apparently he has learned nothing.
King Cuomo. STAY IN YOUR OWN BACKYARD and stop screwing with the US economy. And CONGRESS needs to get some backbone to retract this coerced agreement. What are Fannie and Freddie hiding that no one in Washington will put a stop to HVCC. The public needs to know what is going on. Did someone (in the highest office of the US) once say transparency is needed? Where is it in the case of HVCC? Appraisers are governed by USPAP. It needs to be enforced. Appraisers had petitioned many years ago that we were being blackballed and blacklisted by people in the real estate industry. No one listened back then and now we're to blame for this mess. What about Dodd and Frank, they stonewalled congress back in 2005, saying fannie and freddie were working fine without regulation. Thanks guys, I guess you were wrong again, as you are most of the time. Everyone needs to join together to defeat this garbage Cuomo has brought upon our industry. Thanks again King.
King Cuomo has succeeded in screwing up the real estate market again. Lets' not forget when he was in charge of HUD at the age of 23. Apparently he has learned nothing.
King Cuomo. STAY IN YOUR OWN BACKYARD and stop screwing with the US economy. And CONGRESS needs to get some backbone to retract this coerced agreement. What are Fannie and Freddie hiding that no one in Washington will put a stop to HVCC. The public needs to know what is going on. Did someone (in the highest office of the US) once say transparency is needed? Where is it in the case of HVCC? Appraisers are governed by USPAP. It needs to be enforced. Appraisers had petitioned many years ago that we were being blackballed and blacklisted by people in the real estate industry. No one listened back then and now we're to blame for this mess. What about Dodd and Frank, they stonewalled congress back in 2005, saying fannie and freddie were working fine without regulation. Thanks guys, I guess you were wrong again, as you are most of the time. Everyone needs to join together to defeat this garbage Cuomo has brought upon our industry. Thanks again King.
Posted on Tuesday, June 23rd, 2009 at 12:40 PM.
Yes, GWS, I had put in the original post some of information of Dodd,Frank,et al democratic thwarting of reforming fannie and freddie, but left it out as 3 out of 4 of my clients voted in that direction....
Anyway here the same leaders who played a giant role in the subprime meltdown are now trying to tell us how to run our economy. Stupid, pathetic and beyond belief.... Only in government could idiots like these get reelected with the utter failures. That's one reason I cannot stand federal bureaucracy and politics. So often its disassociated from competence and success.
Take a look at at many of the buffoons in their own words:
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Anyway here the same leaders who played a giant role in the subprime meltdown are now trying to tell us how to run our economy. Stupid, pathetic and beyond belief.... Only in government could idiots like these get reelected with the utter failures. That's one reason I cannot stand federal bureaucracy and politics. So often its disassociated from competence and success.
Take a look at at many of the buffoons in their own words:
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Posted on Wednesday, June 24th, 2009 at 7:02 AM.
GWS wrote:
Jay,
You should logon to Appraisersforum.com. You can really get a grip on what's going on with HVCC and AMCs and how they try to manipulate appraisers.
I believe you can logon under general public.
Jay,
You should logon to Appraisersforum.com. You can really get a grip on what's going on with HVCC and AMCs and how they try to manipulate appraisers.
I believe you can logon under general public.
Posted on Wednesday, June 24th, 2009 at 10:17 AM.
Jolenta Averill wrote:
Jay, This is truly an appalling situation. Please repost the link to the petition so I can add it to the comments on my website and send my Twitter friends over to sign it. Thanks! Jolenta
Jay, This is truly an appalling situation. Please repost the link to the petition so I can add it to the comments on my website and send my Twitter friends over to sign it. Thanks! Jolenta
Posted on Wednesday, June 24th, 2009 at 11:01 AM.
Here's the link to the HVCC petition:
http://www.hvccpetition.com/
http://www.hvccpetition.com/
Posted on Wednesday, June 24th, 2009 at 11:19 AM.
Michael wrote:
Jay, in our government you fail your way to the top. Some people are still under the impression that AMCs distribute appraisal orders to whomever happens to be next on the list. This must be a joke. They are money grabbing appraisal mills who paid the politicians to kill their competition and who violate USPAP at every turn. Now they even claim that appraisals can be portable if only the lenders name on the report is changed. No, they place an order with anyone willing to work for $150/report. Or they hire salaried appraisers who do it in-house. I have 20 years in the business and yet to receive a single order from any AMC since HVCC came into effect. Most of major AMCs claim not to need additional appraisers in the area (major metro area). I suspect they don't want to hire experienced appraisers who know too much. It's much easier to deal with robots for $10/hr. What Cuomo and his friends did is criminal.
Jay, in our government you fail your way to the top. Some people are still under the impression that AMCs distribute appraisal orders to whomever happens to be next on the list. This must be a joke. They are money grabbing appraisal mills who paid the politicians to kill their competition and who violate USPAP at every turn. Now they even claim that appraisals can be portable if only the lenders name on the report is changed. No, they place an order with anyone willing to work for $150/report. Or they hire salaried appraisers who do it in-house. I have 20 years in the business and yet to receive a single order from any AMC since HVCC came into effect. Most of major AMCs claim not to need additional appraisers in the area (major metro area). I suspect they don't want to hire experienced appraisers who know too much. It's much easier to deal with robots for $10/hr. What Cuomo and his friends did is criminal.
Posted on Friday, June 26th, 2009 at 2:04 PM.
David wrote:
Realtors are absolutely right in their accusation that appraisers are turning in sloppy, mistake filled appraisals after May 1st. They are also right when they say that appraisers are taking on assignments 100+ miles away from their office. If you need an explanation of why this is taking place read on:
On May 1st appraisers were told that they must surrender 50% of their income to the new middle men (AMCs) who would place the orders. I've owned an appraisal company for 17 years with no complaints filed to date. Knowing that we would automatically lose 1/2 of our income overnight I instructed my staff to simply throw together something that resembles an appraisal and shove it out the door in less than 24 hours. At that point research and quality became meaningless. I suspect that most other shops have taken the same approach. I don't know of many workers in the U.S. that would agree to provide you with the same amount of work when you tell them their paycheck will be cut in half. Do you?
On May 1st appraisal business owners were forced to give up all of their clients and essentially told to sit by the phone and wait for new clients to call. Some owners spent their entire lifetimes building their client base. When the only appraisal orders coming in were located 100-200 miles away most appraisers will take the assignments in order to feed their family.
If you have a problem with either of these concepts you should have a very big problem with HVCC.
If you're not familiar you HVCC you should read up on it. It is hurting Realtors, Mortgage Brokers, & Appraisers. It's greatest impact will be felt by borrowers in coming months. They are consistently being lied to on the HUD-1 about their appraisal fee, they are being forced to pay up to 100% more for each appraisal order in order to feed the new AMCs, they are being forced to pay for multiple appraisals on their properties, and they are rountinely losing their loan locks. In recent months many borrowers have called our office stating that they ended up paying a 1% higher interest rate because the appraisal was slow. They are telling us that the closing process took nearly 2 months. We tell them that the appraisal was turned around within 24 hours. What we fail to tell them is that we were paid beans for the appraisal therefore their appraisal was a pile of meaningless paper.
Realtors are absolutely right in their accusation that appraisers are turning in sloppy, mistake filled appraisals after May 1st. They are also right when they say that appraisers are taking on assignments 100+ miles away from their office. If you need an explanation of why this is taking place read on:
On May 1st appraisers were told that they must surrender 50% of their income to the new middle men (AMCs) who would place the orders. I've owned an appraisal company for 17 years with no complaints filed to date. Knowing that we would automatically lose 1/2 of our income overnight I instructed my staff to simply throw together something that resembles an appraisal and shove it out the door in less than 24 hours. At that point research and quality became meaningless. I suspect that most other shops have taken the same approach. I don't know of many workers in the U.S. that would agree to provide you with the same amount of work when you tell them their paycheck will be cut in half. Do you?
On May 1st appraisal business owners were forced to give up all of their clients and essentially told to sit by the phone and wait for new clients to call. Some owners spent their entire lifetimes building their client base. When the only appraisal orders coming in were located 100-200 miles away most appraisers will take the assignments in order to feed their family.
If you have a problem with either of these concepts you should have a very big problem with HVCC.
If you're not familiar you HVCC you should read up on it. It is hurting Realtors, Mortgage Brokers, & Appraisers. It's greatest impact will be felt by borrowers in coming months. They are consistently being lied to on the HUD-1 about their appraisal fee, they are being forced to pay up to 100% more for each appraisal order in order to feed the new AMCs, they are being forced to pay for multiple appraisals on their properties, and they are rountinely losing their loan locks. In recent months many borrowers have called our office stating that they ended up paying a 1% higher interest rate because the appraisal was slow. They are telling us that the closing process took nearly 2 months. We tell them that the appraisal was turned around within 24 hours. What we fail to tell them is that we were paid beans for the appraisal therefore their appraisal was a pile of meaningless paper.
Posted on Monday, July 6th, 2009 at 10:52 AM.
Gina wrote:
I work for a veteran AMC that was around way before HVCC. Everyone makes great points in your posts and the HVCC will likely be overturned. In the meantime please consider NAN for your appraisal needs. We are not like the other AMC's out there. Our appraiser's name their own fees and we schedule the appraisal immediately upon receiving the order. Our turn around is always 48-72 hours from inspection and the appraiser's I work with all say that NAN is the "Only good appraisal management company our there". Our clients love us too and are all very happy with the way we do business. I know HVCC is frustrating for all of us, but we're here to help. Please contact me if you have any questions or would like more information on Nationwide Appraisal Network. -Gina (813-749-8841x209) gjackson@mynanonline.com... If you're an appraiser and interested in sigining up with NAN please go to NationalVendorSource.com. Thanks!
I work for a veteran AMC that was around way before HVCC. Everyone makes great points in your posts and the HVCC will likely be overturned. In the meantime please consider NAN for your appraisal needs. We are not like the other AMC's out there. Our appraiser's name their own fees and we schedule the appraisal immediately upon receiving the order. Our turn around is always 48-72 hours from inspection and the appraiser's I work with all say that NAN is the "Only good appraisal management company our there". Our clients love us too and are all very happy with the way we do business. I know HVCC is frustrating for all of us, but we're here to help. Please contact me if you have any questions or would like more information on Nationwide Appraisal Network. -Gina (813-749-8841x209) gjackson@mynanonline.com... If you're an appraiser and interested in sigining up with NAN please go to NationalVendorSource.com. Thanks!
Posted on Monday, July 6th, 2009 at 10:34 PM.
David wrote:
I haven't run across an AMC yet that did not let you "name" your fee. The problem is that if the fee you "name" doesn't fall below $150 they go on to another appraiser. When the appraiser's "named" fee matches the AMCs "named" fee they place the order.
I haven't run across an AMC yet that did not let you "name" your fee. The problem is that if the fee you "name" doesn't fall below $150 they go on to another appraiser. When the appraiser's "named" fee matches the AMCs "named" fee they place the order.
Posted on Tuesday, July 7th, 2009 at 9:11 AM.
Gina wrote:
Hi Dave, If you don't believe me sign up! Nationalvendorsource.com. Our appraiser's are assigned based on their ranking which is determined by turn time and customer service and by your proximity to the subject property. The only time you'll get $100 from us is for a trip fee, reports are worth a lot more than that!
Hi Dave, If you don't believe me sign up! Nationalvendorsource.com. Our appraiser's are assigned based on their ranking which is determined by turn time and customer service and by your proximity to the subject property. The only time you'll get $100 from us is for a trip fee, reports are worth a lot more than that!
Posted on Tuesday, July 7th, 2009 at 9:21 AM.
Gina wrote:
Doesn't someone manage this blog? That's disgusting. All I was trying to do was help you make the best out of a bad situation. Gross.
Doesn't someone manage this blog? That's disgusting. All I was trying to do was help you make the best out of a bad situation. Gross.
Posted on Wednesday, July 22nd, 2009 at 8:34 AM.
Gina, while David's response was not too cool and should have been worded differently it does capture the intense frustration/bitterness many self employed contractors are experiencing now as a result of big brother folly.
I'm looking into how to edit the remarks, but do not currently have access to do so. My question is in a forum waiting for response from the website designer now though.
Sorry for the rough material.
I'm looking into how to edit the remarks, but do not currently have access to do so. My question is in a forum waiting for response from the website designer now though.
Sorry for the rough material.
Posted on Wednesday, July 22nd, 2009 at 9:04 AM.
David wrote:
Thanks for the offer Gina but I would drink [edited out by moderator..................] accepting another AMC order. In short; HVCC is legalized (at least for now) blackmail.
Thanks for the offer Gina but I would drink [edited out by moderator..................] accepting another AMC order. In short; HVCC is legalized (at least for now) blackmail.
Posted on Wednesday, July 22nd, 2009 at 4:58 PM.
Gina wrote:
Thanks Jay!
Thanks Jay!
Posted on Monday, July 27th, 2009 at 2:24 PM.
I had to have functionality added to the blog by 3rd party so I could do editing. I plan on almost never editing comments again unless really necessary....
Posted on Monday, July 27th, 2009 at 2:28 PM.
FHA says not to HVCC rules everybody. here's the tbws video on it--very colorful as usual:
http://www.thinkbigworksmall.com/mypage/player/tbws/14856/1031016
http://www.thinkbigworksmall.com/mypage/player/tbws/14856/1031016
Posted on Tuesday, August 25th, 2009 at 9:08 AM.
David wrote:
Sorry that you found my response offensive. I thought I worded it rather nicely considering the fact that HVCC and AMCs are putting thousands of experienced appraisers out of business. If you require further explanation for my hostility towards both just visit our old company webpage at www.investsmart.com It gives a full explanation of why appraisers hate HVCC & AMCs.
Sorry that you found my response offensive. I thought I worded it rather nicely considering the fact that HVCC and AMCs are putting thousands of experienced appraisers out of business. If you require further explanation for my hostility towards both just visit our old company webpage at www.investsmart.com It gives a full explanation of why appraisers hate HVCC & AMCs.
Posted on Tuesday, August 25th, 2009 at 9:56 AM.
Rick Phillips wrote:
David is exactly the type of idiot appraiser that the HVCC was created to control. His reports are full of the same shoot-from-the-hip crap rather than carefully extracted market data.
And Gina ... your company that you sneakily advertised in the midst of this is crap. It's like saying that that kidnapper, Garrido, is actually a nice guy b/c he fed Jaycee Dugard and didn't beat her up all these past years....
Wow ... this thread has seriously deteriorated. Glad I could help :-)
David is exactly the type of idiot appraiser that the HVCC was created to control. His reports are full of the same shoot-from-the-hip crap rather than carefully extracted market data.
And Gina ... your company that you sneakily advertised in the midst of this is crap. It's like saying that that kidnapper, Garrido, is actually a nice guy b/c he fed Jaycee Dugard and didn't beat her up all these past years....
Wow ... this thread has seriously deteriorated. Glad I could help :-)
Posted on Friday, September 4th, 2009 at 3:10 PM.
Rick, with your frank observations you would be a great real estate blogger....Let's pick you a niche area and get you on my team helping buyers to NOT overpay for their homes.
And have you seen my latest endeavor?
http://www.youtube.com/watch?v=Vis4HnWIYoo
And have you seen my latest endeavor?
http://www.youtube.com/watch?v=Vis4HnWIYoo
Posted on Friday, September 4th, 2009 at 3:19 PM.
HVCC and My Worries About The Appraisal « Real Estate Investing Boomer wrote:
[...]information about HVCC:
Realtor Magazine
Arlington, TX Real Estate Blog
The Examiner-Tulsa
A Realtor in Virginia
Appraisal Press
Until next time…[...]
[...]information about HVCC:
Realtor Magazine
Arlington, TX Real Estate Blog
The Examiner-Tulsa
A Realtor in Virginia
Appraisal Press
Until next time…[...]
Posted on Sunday, September 6th, 2009 at 11:28 AM.
Dave wrote:
It is very frustrating that I JUST learned about the HVCC rules today. Last week our deal to buy a vacation/rental property went down the drain. With the closing fast approaching, we had to press forward and arrange for utilities to be switched and obtain an insurance policy. Now we are in the process of undoing all of this work.
After the fact, my Realtor tells me that the low appraisals are happening a lot lately. It would have been nice if she told us that when the sales agreement was executed.
It is very frustrating that I JUST learned about the HVCC rules today. Last week our deal to buy a vacation/rental property went down the drain. With the closing fast approaching, we had to press forward and arrange for utilities to be switched and obtain an insurance policy. Now we are in the process of undoing all of this work.
After the fact, my Realtor tells me that the low appraisals are happening a lot lately. It would have been nice if she told us that when the sales agreement was executed.
Posted on Tuesday, September 8th, 2009 at 12:40 PM.
David wrote:
Rick
I invite you to show me a poor example of appraisal work that my office ever produced. We accepted appraisal work for 17 years with no complaints filed. We worked primarily with banks (not mortgage companies) prior to HVCC robbing appraisers of 1/2 or more of their income. I also invite you to take a 50% pay cut and not complain about it.
If you choose to shoot your mouth off about poor quality work be prepared to prove it. I have no doubt that you own an AMC.
Rick
I invite you to show me a poor example of appraisal work that my office ever produced. We accepted appraisal work for 17 years with no complaints filed. We worked primarily with banks (not mortgage companies) prior to HVCC robbing appraisers of 1/2 or more of their income. I also invite you to take a 50% pay cut and not complain about it.
If you choose to shoot your mouth off about poor quality work be prepared to prove it. I have no doubt that you own an AMC.
Posted on Tuesday, September 8th, 2009 at 2:48 PM.
Sam Parisi wrote:
We have had low appraisals on evry AMC driven appraisal. In our last case, there was a second Buyer (Back-up) waiting with cash well over our Contract price, and the appraisal came in $10,000 low after missing the obvious local sales comparables, and missing five other areas of inaccurate adjustments...just a real sloppy product that put our Buyer in a terrible position,regarding inspections paid, and escrow and tax rebate in doubt !! Just outright fraud...there needs to be a class action Lawsuit before the Market is ruined by the Bank Lobby !!.
We have had low appraisals on evry AMC driven appraisal. In our last case, there was a second Buyer (Back-up) waiting with cash well over our Contract price, and the appraisal came in $10,000 low after missing the obvious local sales comparables, and missing five other areas of inaccurate adjustments...just a real sloppy product that put our Buyer in a terrible position,regarding inspections paid, and escrow and tax rebate in doubt !! Just outright fraud...there needs to be a class action Lawsuit before the Market is ruined by the Bank Lobby !!.
Posted on Saturday, October 3rd, 2009 at 2:10 AM.
Here's some great points on video about those moral high ground loser pro AMC appraisers that are indignant when the consumer/marketplace seeks a 2nd opinion on the appraisal:
http://www.thinkbigworksmall.com/mypage/player/tbws/17442/1031016
http://www.thinkbigworksmall.com/mypage/player/tbws/17442/1031016
Posted on Thursday, October 15th, 2009 at 8:38 AM.
Jeff Thomas wrote:
Things have calmed down some with the intial HVCC issues. it seems turn times have been reduced, but that is about all. The issue of accountability is still missing. There is very little recourse for a sloppy appraisal. I have had clients waste at least $1,500 on appraisals that came in LOW. Had I been able to contact an appraiser to get a preliminary value I might have been able to save my clients that money. We had no luck in fighitng the appraisals either.
Jeff
http://www.lending-solutions.net
mortgage rates,fairfax real estate, refinance in fairfax,Fairfax homes for sale
Things have calmed down some with the intial HVCC issues. it seems turn times have been reduced, but that is about all. The issue of accountability is still missing. There is very little recourse for a sloppy appraisal. I have had clients waste at least $1,500 on appraisals that came in LOW. Had I been able to contact an appraiser to get a preliminary value I might have been able to save my clients that money. We had no luck in fighitng the appraisals either.
Jeff
http://www.lending-solutions.net
mortgage rates,fairfax real estate, refinance in fairfax,Fairfax homes for sale
Posted on Tuesday, October 20th, 2009 at 9:04 PM.
Greg wrote:
I've had customers lose their home because the appraisal took 4 weeks to get in, then TBW
goes out of business, now we need a new appraisal for a new lender, that takes 3 weeks,
the new lender adds conditions on the appraisal that they ordered, that takes a week to get
in, now the interest rates are different due to the new MDIA laws I have to redisclose, wait another week to close, customer now does not have the money for their house payment due
to the $1,000 dollars in appraisals they had to pay, we now have to go FHA and the customer
has to pay MI and the interest rate is higher, we have to order another appraisal, customer
doesnt have the money, borrows it from a friend, processing takes too long,now the customer is 60 days down, cant do anything, customer loses home, hurts appraised values in the area,
adds to the recession.
Greg
I've had customers lose their home because the appraisal took 4 weeks to get in, then TBW
goes out of business, now we need a new appraisal for a new lender, that takes 3 weeks,
the new lender adds conditions on the appraisal that they ordered, that takes a week to get
in, now the interest rates are different due to the new MDIA laws I have to redisclose, wait another week to close, customer now does not have the money for their house payment due
to the $1,000 dollars in appraisals they had to pay, we now have to go FHA and the customer
has to pay MI and the interest rate is higher, we have to order another appraisal, customer
doesnt have the money, borrows it from a friend, processing takes too long,now the customer is 60 days down, cant do anything, customer loses home, hurts appraised values in the area,
adds to the recession.
Greg
Posted on Thursday, October 22nd, 2009 at 1:48 PM.
DH wrote:
Portability is not an HVCC issue. HVCC allows appraisal to be re-assigned to a different lender. Portability is a USPAP (Uniform Standards of Professional Appraisal Paractice) issue. And in the appraiser world, USPAP trumps HVCC. The lender may communicate directly with the appraiser, as long as that person is not part of the loan origination team. You guys need to get your facts straight.
Portability is not an HVCC issue. HVCC allows appraisal to be re-assigned to a different lender. Portability is a USPAP (Uniform Standards of Professional Appraisal Paractice) issue. And in the appraiser world, USPAP trumps HVCC. The lender may communicate directly with the appraiser, as long as that person is not part of the loan origination team. You guys need to get your facts straight.
Posted on Friday, November 13th, 2009 at 9:20 AM.
Hey, DH. Realize that most of this conversation if nearly 5 months old when the HVCC had just come out and the rules were not that clear or at least there was much confusion about it. I think we all know the lenders can communicate with the appraiser. So thanks for the old news.
You need to be more punctual in tuning in to the story, DH, and not glide in months afterward as if you have the slightest platform to look down and tell people to get their facts straight.
However your point on USPAP is a good one and appreciated. Did the USPAP modify the portability issue right when HVCC was coming out and therefor the former was associated with the latter? Please chime in on that if you're still around.
j
You need to be more punctual in tuning in to the story, DH, and not glide in months afterward as if you have the slightest platform to look down and tell people to get their facts straight.
However your point on USPAP is a good one and appreciated. Did the USPAP modify the portability issue right when HVCC was coming out and therefor the former was associated with the latter? Please chime in on that if you're still around.
j
Posted on Friday, November 13th, 2009 at 9:35 AM.
There's an update to HVCC. Cuomo's office agrees it's a mess and needs to be redone. Great video update on the situation here. These guys are great to watch for a couple minutes each morning for breaking real estate news.
http://www.thinkbigworksmall.com/mypage/player/tbws/20271/1031016
http://www.thinkbigworksmall.com/mypage/player/tbws/20271/1031016
Posted on Monday, November 23rd, 2009 at 5:25 AM.
FRANK TRUCCHIO wrote:
I appreciate the fact that you are stepping up and putting your butt on the line here...but please, please, please check your facts prior to going public. It will give you more credibility.
Anthony Cumo? Isn't it Andrew?
Also, it has NEVER been legal to switch appraisals from one lender to another. But what I have always found strange is how most "professionals" in the game are not aware of this. Check USPAP, that would be (Uniform Standards of Professional Appraisal Practice). Check out the link below where it clearly states this.
http://www.appraisalfoundation.org/s_appraisal/sec.asp?CID=3&DID=3
Yes, the game has changed and from my perspective, the Appraisal "Profession" has turned from a legitimate"profession" to a part-time job at best for anyone willing to prostitute themselves and allow this to happen.
For my wife and myself, we have appraised over 3,000 SFR's/Condos in almost 5 years. But with this HVCC, I refuse to allow the government to use MY license for their ignorance. So what does this leave you with? Second rate Appraisers willing to do whatever they need to do to survive, earning half as much as they should be while the AMC's charge up to 50% more for appraisals with no regard to turn times and quality control over their selection of Apppraisers.
Good luck with this mess. I have started another business and will continue building that until the goverfnment decides to step in and take that away from us too. Out...
I appreciate the fact that you are stepping up and putting your butt on the line here...but please, please, please check your facts prior to going public. It will give you more credibility.
Anthony Cumo? Isn't it Andrew?
Also, it has NEVER been legal to switch appraisals from one lender to another. But what I have always found strange is how most "professionals" in the game are not aware of this. Check USPAP, that would be (Uniform Standards of Professional Appraisal Practice). Check out the link below where it clearly states this.
http://www.appraisalfoundation.org/s_appraisal/sec.asp?CID=3&DID=3
Yes, the game has changed and from my perspective, the Appraisal "Profession" has turned from a legitimate"profession" to a part-time job at best for anyone willing to prostitute themselves and allow this to happen.
For my wife and myself, we have appraised over 3,000 SFR's/Condos in almost 5 years. But with this HVCC, I refuse to allow the government to use MY license for their ignorance. So what does this leave you with? Second rate Appraisers willing to do whatever they need to do to survive, earning half as much as they should be while the AMC's charge up to 50% more for appraisals with no regard to turn times and quality control over their selection of Apppraisers.
Good luck with this mess. I have started another business and will continue building that until the goverfnment decides to step in and take that away from us too. Out...
Posted on Friday, December 18th, 2009 at 10:02 AM.
Tom Allen wrote:
In addition to this HVCC matter the State Licensing Boards have slammed the door on some of us seniors. I appraised for 30 years and have held licenses in three states. I retire a couple of years ago and let my license expire. I am finding I have to return to work because I cannot make it on my retirement income. Since I let my license expire I have to start all over to get a license and cannot meet the new college graduate requirement. Fuzzy thinking, a new appraiser with a degree has more knowledge than someone who has had 30 years in the business. I never had one complaint in my career and had some clients for over ten years do to the fast and accurate service I provided. Your government in action.
In addition to this HVCC matter the State Licensing Boards have slammed the door on some of us seniors. I appraised for 30 years and have held licenses in three states. I retire a couple of years ago and let my license expire. I am finding I have to return to work because I cannot make it on my retirement income. Since I let my license expire I have to start all over to get a license and cannot meet the new college graduate requirement. Fuzzy thinking, a new appraiser with a degree has more knowledge than someone who has had 30 years in the business. I never had one complaint in my career and had some clients for over ten years do to the fast and accurate service I provided. Your government in action.
Posted on Thursday, December 31st, 2009 at 4:04 PM.
tom, that infuriates me period. The same inept bureaucrats that think of such stupid rules also believe a PhD in mathematics is not qualified to teach math at a high school for lack of an teaching certificate. Yours is a complete injustice and is demonstrative of what happens when bureaucrats make decisions for the marketplace instead of letting individuals and small businesses hire who they think is most qualified based on their own self interests of profit, professionalism and referrals.
Yes, it's your liberal government in action to add clarification to your post, Tom. The one that thinks creating more gov jobs is helping the economy while the private sector that really creates wealth for a nation stagnates or shrinks. The same government that has voters who are proud of a President they voted for who agrees with the liberal Congress that has dumped $40,000 of debt on each of my childrens' heads.
Stossel had a good piece today that showcased this truth: " There is no greater threat to individual freedom and autonomy than government.
" There is no greater threat to individual freedom and autonomy than government. The threat from private freelance crime is small potatoes compared to the daily usurpations of the state, with its taxation, regulation, privilege-granting, inflation and war. Pierre-Joseph Proudhon's immortal passage has never been topped:
"To be governed is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be governed is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility, and in the name of the general interest, to be place(d) under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then, at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed; and to crown all, mocked, ridiculed, derided, outraged, dishonored." "
Yes, it's your liberal government in action to add clarification to your post, Tom. The one that thinks creating more gov jobs is helping the economy while the private sector that really creates wealth for a nation stagnates or shrinks. The same government that has voters who are proud of a President they voted for who agrees with the liberal Congress that has dumped $40,000 of debt on each of my childrens' heads.
Stossel had a good piece today that showcased this truth: " There is no greater threat to individual freedom and autonomy than government.
" There is no greater threat to individual freedom and autonomy than government. The threat from private freelance crime is small potatoes compared to the daily usurpations of the state, with its taxation, regulation, privilege-granting, inflation and war. Pierre-Joseph Proudhon's immortal passage has never been topped:
"To be governed is to be watched, inspected, spied upon, directed, law-driven, numbered, regulated, enrolled, indoctrinated, preached at, controlled, checked, estimated, valued, censured, commanded, by creatures who have neither the right nor the wisdom nor the virtue to do so. To be governed is to be at every operation, at every transaction noted, registered, counted, taxed, stamped, measured, numbered, assessed, licensed, authorized, admonished, prevented, forbidden, reformed, corrected, punished. It is, under pretext of public utility, and in the name of the general interest, to be place(d) under contribution, drilled, fleeced, exploited, monopolized, extorted from, squeezed, hoaxed, robbed; then, at the slightest resistance, the first word of complaint, to be repressed, fined, vilified, harassed, hunted down, abused, clubbed, disarmed, bound, choked, imprisoned, judged, condemned, shot, deported, sacrificed, sold, betrayed; and to crown all, mocked, ridiculed, derided, outraged, dishonored." "
Posted on Thursday, December 31st, 2009 at 7:01 PM.
BIG HUD changes to appraisal/hvcc rules. HUD just revised its lenders guide 4155.2 to say lenders will be in charge of collecting and paying fees to appraisers--not AMCs. And appraisals will be portable to new lenders as well and if not done in a timely manner the new lender can order a new appraisal....
http://www.youtube.com/watch?v=-Pc788CtQYk
This is taken from the excellent source of new and breaking mortgage industry news Think Big Work Small found here: http://www.thinkbigworksmall.com/ Their daily video is entertaining to say the least--although some days are more entertaining than others....
http://www.youtube.com/watch?v=-Pc788CtQYk
This is taken from the excellent source of new and breaking mortgage industry news Think Big Work Small found here: http://www.thinkbigworksmall.com/ Their daily video is entertaining to say the least--although some days are more entertaining than others....
Posted on Tuesday, January 5th, 2010 at 6:44 AM.
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I submitted a mortgage application in early May. I had a scheduled appraisal on June 1, 09 and was notified by my broker prior to the code of conduct change. The appraiser never called and never phoned. I called my broker who called his appraisal group who called landsafe. I called landsafe who is handling my appraisal and was told the June 1 appraisal was never assigned to my case. I now have a tentative appraisal for July 9, No one has ever called or emailed to confirm which is very disconcerting to me. My fear is that July 9 comes and no one shows up again. I can't afford for this to happen. I was thinking about activating another mortgage application that I have complete but not submitted with my local bank. The problem with this is I am concerned about the amount of time it will take to process. So much time has passed since I started the process that it is costing me money in more ways than I care to share.
Posted on Thursday, June 11th, 2009 at 9:13 AM.