HVCC may soon be terminated

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This is good news for home buyers and owners who need to refinance.

HVCC created a barrier between the loan officer and the appraiser, by required loan officers to have no contact with the appraiser (similar rules apply to the real estate agent and the appraiser). They accomplished this by requiring all appraisals to be ordered through an appraisal management company (AMC).

The problems were the AMCs charged a higher fee than an independent appraiser and kept most of money it for itself, even thought it was simply an order taker. The appraisers were forced to work for often less than half what they made previously. Also often appraisers assigned to perform the work had no familiarity with the area resulting in appraisals low-ball appraisals. For example, using Union City comps to appraise a Fremont home.

Another key benefit of removing HVCC will be the “check of value “ request. We’ll be able to once again, have a conversation with the appraiser to get their opinion of value prior to the inspection. This is especially helpful in the case of refinances. There’s no use expending money if the home will not appraise for the value required to complete the refinance

Read more here http://www.dsnews.com/articles/controversial-hvcc-faces-termination-with-house-amendment-2009-10-30

-sunil

SMA REALTY

Sunil Sethi / Broker, Preisent, REALTOR, MBA, CPA / SMA Realty
38350 Fremont Blvd. #202 / Fremont, CA 94536
Office 510 793 8600 / Mobile 510 388 2436 / Fax 510 431 9046

My Bio: http://sunilsethi.com/about_me.htm

Personal: http://www.sunilsethi.com

My blog: http://fremontrealestate.blogspot.com/

LinkedIn: http://www.linkedin.com/in/fremontrealtor

CA DRE#: 01173766

Comments

autazell said…
"Another key benefit of removing HVCC will be the “check of value “ request. We’ll be able to once again, have a conversation with the appraiser to get their opinion of value prior to the inspection. This is especially helpful in the case of refinances. There’s no use expending money if the home will not appraise for the value required to complete the refinance."

This is (and always was) a violation of USPAP. When appraisers talk about PRESSURE, this is what they are talking about!!! I am shocked that you would see that as a key benefit of terminating the HVCC.
Thursday, November 05, 2009 7:05:00 PM
Sunil The Fremont Realtor said…
autazell,

there's pressure if tell the appraiser come up with the value or else, but if call up to ask them what do you think, so you can give your client an idea of what's possible there's no pressure. And guess what, if you were applying for a loan, would you really want to spend $500-$800 to discover there's not enough equity to do what you want to do.
Thursday, November 05, 2009 7:41:00 PM
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