HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Bruce Marcom — Fri, 06 Nov 2009 04:22:40 GMT

I use to hunt for bad appraisers for the state and the percent of appraisers that need their license yanked is suprisingly low. The HVCC was created on the pretense that appraisers were being pressured by lenders to do unethical things. This is bogus, there are only a hand full bad appraisers in the US the percent is less than 1%. HVCC was created as a knee jerk reaction to all the bad loans and forclosures that have happen in the last 3 years. Fannie Mae has to blame someone so, the appraiser is on the top of the hit list. But appraisers dont cause bad loans or foreclosures, LOs putting people in homes that dont belong in them do. There are actually more bad LOs than bad appraisers but even that percent is low too. Most appraisers when they get a call from a LO or processor that ask them to do something illegal or unethical will just tell them no and hang up on them. The violators I did catch didnt belong in any professional business period. I caught more LOs doing bad things than appraisers, I had to report them to another dept that handeled LOs. I had an appraiser send me an email written to him by a LO that offered him a bribe to bum the appraisal. Dum for doing it, super dumb for emailing it. He is in jail now. I had been working for myself these last few years, HVCC prevented most of my clients from ordering from me, and in Jan 1, 2010 when FHA incorporates HVCC rules, that will kill the rest of what little business I have left. I dont do work for AMCs, I dont believe in doing assignments to the lowest bidder or giving part of the fee I earned to some other middleman because he pressed a fax button. Besides the only way a profession appraiser could live off of AMCs fees if he had a bunch of trainees pumping out 100s of reports a month to make money above his over head. Doing that many reports using trainees or not, the quality suffers and u/w conditions go up, turn around time increases. Some people may be ok with losing half their income or more, but if a doctor or lawyer or other professional lost that much of his income he wouldnt "settle" when he could go find other work that made as much as he was making before. I may not make 100k-200k anymore, but I will be damed if I will settle for 30k a year because FannieMae says I should. I am seeking a career outside of appraiser business right now, leave all this sillyness behind me.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Charlotte Norton — Tue, 18 Aug 2009 15:57:08 GMT

Looks like there will be plenty of work for Paul when the rest of us appraisers---the ones with a clue and a shred of dignity---end up leaving the profession.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Ed Connor — Fri, 31 Jul 2009 17:10:48 GMT

Not only are the AMC's lowering appraised values by forcing inclusion of off-market, non-arms length transcation, in the appraisal report, but they're holding on to appraisals for weeks after they're submitted, forcing borrowers to lose their locks and pay more fees. You're supposed to be able to transfer an appraisal between banks but the banks are not allowing it. The want to keep the borrower they've hog-tied. Fair?

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Lynn Maina — Fri, 31 Jul 2009 15:49:16 GMT

I consider HVCC a joke when an underwriter conditions for a review of an appraisal that was done under HVCC.......now why use HVCC if we are also getting reviews ???????please people stop the insanity and lets get on with doing our job and getting this nation back on its feet....HVCC will not do that.....let us use our appraisers and then we can review if need be.........get a clue

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Ed Connor — Fri, 31 Jul 2009 15:14:33 GMT

AMC's are making appraisers add REO, foreclosure, off-market and short sales to their reports. They are trying to lower report values. Why? To make it look the the appraisers are to blame and to make it appear to the outside observer that they are fighting fraud? Or is it that they are trying to destroy a profession so their AVM models can take ALL the fees. They sure are doing their best to hire the least experienced appraisers at the Walmart prices they pay. Wake up! The banks are the cause of the meltdown and the HVCC was born of fraud and price fixing between WAMU and eappraiseit. So the perps get rewarded??!! If the banks had skin in the game and were responsible for the loans they wrote they'd have practiced proper due diligence in their underwriting standards and those liar loans and 125% LTV's wouldn't hve gone through and the bubble wouldn't have happened. It was the banks greed that caused the meltdown and it's the banks greed continued through these AMC's in skimming fees and charging the consumer more in monopolizing the mortgage loan process that is taking more and more of our tax dollars and depleting individual states incomes. This disaster is the banks fault alone, get rid of anything that allows them more power in the mortgage process. History shows they will do anything for the quick buck and their schemes will ruin the economy again and for years to come.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Paul Earley — Wed, 22 Jul 2009 03:42:24 GMT

I do not work for minimum wage -I get paid just fine. You concentrated on a few comments that I made- I will not take back regarding fees-all fees for real estate transactions are excessive. You ignored the fact that I do not like to work for free by providing comp checks-please read my post. Why do all appraisers hide behind the "if I do the report in less than 5-8 hours-it is a junk report". Just a thought-type faster. I do not necessarily think the HVCC is good but better than the brokers pressuring appraisers to raise value- but you do not work for any brokers that pressured you for value-or maybe you just hit the high value and no one complained-just a thought. I will not be leaving the industry anytime soon. I do take offense to your comments. At least I am calling a spade a spade but you hide behind how ethical you are and how long it takes to produce a quality report-I do hate the 8 hour turn times from time of inspection just like every appraiser. My main point is that the consumer should pay for what they get (whining that the borrower paid for an appraisal but did not get the loan really irks me) and that appraisers are not killing deals-news flash-we are in a declining market. By the way, you are ignorant in matters of economics as illegal immigrants are necessary for low price produce and other menial jobs that keep prices down that snobs like you do not want to do.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Mike Miller — Fri, 17 Jul 2009 23:53:12 GMT

To comment on Paul Earley's replies.. It's pretty obvious this individual will work for Walmart wages and believes everyone else should too. Sorry pal, I didn't get a college degree and study 3 years as an apprentise to make $20/hr. I will tell anyone in Detroit to their face that $200 is not enough for a job that takes 6-8hrs to complete considering most of those unemployeed in Detroit were making close to $40+ an hour anyways. They'd probably tell me I'm a fool to work that cheap with all the liability that's included in my line of work, including the costs of running my business and continuing eduction. So you go right ahead and slave for $15-$20 and wonder why you're not getting ahead in life while us that have morals and will not work for the slavemasters make a good living. I've been appraising now for 14 years and believe this HVCC is the worst idea ever. There was no problem with communicating with my clients. We had more then enough rules set before the HVCC started, this POS only made things worse. We all hope people like Paul will find another line of work. We don't need people undercuting our wages anymore. You're as bad as the illegals coming up from the south willing to work for below minimum wage....

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Mike Miller — Fri, 17 Jul 2009 23:51:10 GMT

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Mike Allen — Mon, 13 Jul 2009 19:15:46 GMT

Regarding the HVCC, I just feel it needs remodeling. It was a knee-jerk reaction to the mortgage problem and pressure on appraisers to "hit the number". Yes, there are bad actors in both the mortgage business as well as the appraisal ranks but a little finesse would have been worthwhile. An 18 month moratorium is appropriate. When you take the ability away for appraisers to get orders from mortgage brokers and make the funnel that much smaller by making lenders the keepers of the power, it is crippling. AMCs are not the answer either. A well written and researched appraisal can take 5-8 hours sometimes. For those guys who do 2-3 a day, you're doing your customer a pretty good disservice. They are relying on you to give them guidance and the benefit of your research. How're you going to get that information in a usable form in 2-3 hours, including driving out to the site for the inspection, taking pics of your comps and learning about the area? You're not. Maybe in Michigan, a $200 fee for an appraiser is considered good but in California, it's just not. Appraisers who used to make a good living dealing with mortgage brokers, just lost their livlihood from over about 20 years. Lender's lists and AMCs lists are full out here. So now the HVCC has just contributed to the unemployment problems too. Great job Coumo. Paul feels that $300 is too much to pay for a good appraisal. Sure it is if you're doing 4 a day, not researching anything, sitting at your desk looking at MLS pictures and comps, and slapping them together. Give me a break. I don't care if a person's been doing it for 10-15 years, the work still needs to be done and done well. An underwriter is relying on you. Give them some information to work from.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Paul Earley — Thu, 09 Jul 2009 04:20:49 GMT

I do think the HVCC is not the best model but it is better than what we had. It does need reworking. Another thought on the bashing of the HVCC. The consumer pays for a service. No one should have to work for free. Is the fee to high-yes. Are real estate commisions to high-yes. Are 1.5 percent yield spreads on mortages to high-yes. Are $300 appraisal fees to high-yes. By the way, I am insulted at the comment made above that it is a slap in the face to receive $200 for an appraisal. Come to Detroit and tell that to an unemployed worker that you are insulted by that wage. That will go over real well. Again greed. The whole real estate process needs an over haul. The whole process needs to be as independant as possible and with as many hands that are fearful they will not get paid if a transaction falls through (real estate agents-mortgage officers and appraiser fearing losing future work) the process will never work correctly. Blaming appraisers and the HVCC is called diverting the attention to another so you can escape. It like throwing a rock from the bush to make a sound else where so you can escape the bad guy. If that sounds ridiculous, you should re read these comments you all have been making. Yeah-lets rally the troops up guys and have a call to action to stop this evil thing called the HVCC so we can still make way to much money off the consumer.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Paul Earley — Thu, 09 Jul 2009 04:01:10 GMT

I am an appraiser. I lost business because I did not over inflate values. I like the HVCC. I have not had 1 request for value check. Above comment suggest appraiser should work for free by providing a value check so the consumer doesnt lose out on $300. Wow! I feel real sorry for the consumer. What a bunch of bull that thought and comment is. Do you like to work for frww and besides it is illeagal to do value checks. I will address any real estate agents thoughts on appraisers not using GOOD comparables. First, the under writing guidelines are that the report should have the first three comparables not over 1 mile or a closed date of 90 days. How many reports do you think fit that guide line-not many. Appraisers do not kill deals, under writing guidelines do for some BUT MOST OF ALL WE ARE IN A DECLING MARKET. Ypou got to be kidding me with this blog talk. I have personally appraised 6 purchases in the last month that appraised for under the purchase price with a few re-negotiated. I guess I am not doing my job because I lost the real estate agent commisions because he/she does not know how to run a comparitive market analysis in the real world of a decling market. All of thesre horror stories are a few-very few examples of gross negligence on the appraisal process of appraising out of the area. These examples happened before this crisis but favored the real estate market and no one cared but you do now. Oh that is right, you are losing money. Greed is all I read here and how the poor consumer is paying for it. I hope the consumer pays for it and not me.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

DONALD SPENCER — Thu, 02 Jul 2009 02:36:43 GMT

As an appraiser the HVCC has had a negative effect on my business. I am as independent as it gets. I work for myself in a home office. Since May 1st my work load has been cut in half with all of my work being FHA appraisals only (no AMC work, $200 is a slap in the face). I am not surprised by the poor quality of work coming from the AMC's. Very few experienced appraisers would be willing to take a 50% cut in pay and get paid the same as an appraiser with 1 year of experience. You get what you pay for. At $200 per appraisal are any of you surprised that you can not get conditions fulfilled? When the HVCC first was proposed I thought this could be a good thing with some logical changes. But instead what we got was very one sided which seems to favor the banks. Why is the appraiser being blamed for the housing collapse? At what point did the bank tell the underwriter to stop doing their job and fund everything no matter what. Yes there are unprofessional appraisers out there but shouldn't their work be caught by the underwriter or the banks appraisal review department? I am just a little guy who is trying to make a living through hard work while producing a good, reliable and trustworthy appraisal. I hope that one of the goals behind the HVCC is NOT to eliminate the mortgage broker. Most of the mortgage brokers I have worked with seem to work hard for the borrower getting them the best rate with what ever banks works best for their situation. Do we really need the HVCC? Aren't there regulations already in place to police the mortgage industry? When will the banks take some responsibility?

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Cindy Allen — Tue, 30 Jun 2009 16:14:16 GMT

Well, all of you clearly have a vested interest in making sure sales go through. The HVCC was designed to prevent the massive fraud that was going on during the giant Ponzi scheme also known as the housing boom. If appraisers are now erring on the side of caution, well, that makes sense. The pendulum has swung the other way. Isn't it just remotely possible that these appraised values are right on, considering that home prices are still dropping in most markets? As a regular old consumer, I am in favor of honest, objective appraisals, and I do not want to buy a house that is overvalued. Many sellers have not adjusted to the new reality and refuse to believe that their home values have declined to the extent that they have. Paul's post is the only intelligent one on this board. It is also the only one not replete with typos. Many of you do not sound very reasoned. You sound like people who are unhappy that things are not going your way. I pray that that bill goes nowhere.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

Miguel Chairez — Mon, 29 Jun 2009 23:44:23 GMT

I am an ethical OREA/LAWSUIT fearing real estate appraiser and I have always been forthcoming with my clients regarding values. In addition, I always submit a supportable value. As a professional appraiser I am heavily regulated, reviewed, and monitored by more governing bodies than I can count; ASB, OREA, FHA, AQB, review appraisers, underwriters with hundreds of different banks/lenders. Over the years I have learned to adapt and conform to many different standards in order to stay competitive. I have to work very hard to obtain my fees and I have cultivated and bent over backwards to keep my business relationships in good standing. Robert Rippy makes one of many good points, banks owning any percentage of an AMC is a major red flag and an ethics violation. The governing body that is designed to oversee the HVCC has yet to be establised how could the HVCC be put into effect without such basic measures. A unregulated power grab by the banking industry is what the HVCC amounts to from my perspective.

re: HR 3044: To Impose 18-month Moratorium on HVCC (!!!!!!!!)

tbbealle — Mon, 29 Jun 2009 20:35:44 GMT

The HVCC has caused more abuses than it was intended to eliminate.