Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

re: Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

John Bannach — Thu, 24 Jan 2013 09:24:49 GMT

Good statistical information. The housing market has two major problems that need further study and rectification. 1) interest rates for housing have a different risk than commercial rates and need a different measure not related to the prime rate that the fed sets for commerce. 2) using cap rates under the present mathematical formula to determine housing values has no logical or economic basis. This obsolete formula feeds speculation and inflation, which benefits speculators and decreases the purchasing power of the dollar. The private sector and government agencies should learn their lesson from the current financial crisis. If they are serious about having real growth in the housing sector and the US economy, then change the present system.

re: Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

Rene Torres — Fri, 11 Jan 2013 19:11:43 GMT

The HVCC expired November 2010. Lenders and Banks do not have to use AMCs. Added appraisal requirements are placed there by regulatory agencies. The appraisers are just required to follow them. Complain to the regulatory agencies.

re: Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

Jana Holmstrup — Mon, 07 Jan 2013 22:34:22 GMT

Bryan, you should speak with your Lender on that. Lenders are not required to use an AMC - many just took the easy way out.

re: Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

josh darrimon — Mon, 07 Jan 2013 16:33:56 GMT

The only major issue that I find wrong with the HVCC system is the additional cost that it has burdened on borrowers. Although I would prefer a different scheme the system itself is necessary if you review the shenanigans that were going on with the industry a few short years ago. If the complaint is that appraisers aren't providing support for negotiated purchase prices... that's not really an appraiser/HVCC issue as they aren't hired to work the numbers to hit the purchase price. Depending on the area foreclosures are certainly appropriate comparables and although appraisals are slower than I would like it's primarily a function of supply/demand on appraisers.

re: Realtors Report Multiple Offers, Quick Sales but Continuing Appraisal and Credit Issues

Bryan/Mortgage Finance Group, Inc. — Fri, 04 Jan 2013 23:34:09 GMT

With regard to the appraisal problems, the elephant in the room is the disastrous HVCC which led to the creation of the AMC's. Just like an insurance company is wedged between a patient and a doctor, an AMC is even more unnecessary as it relates to a real estate transaction. Why the industry just rolled over and allowed itself to be violated like this is beyond me. We need lenders to push back and rescind this ridiculous impediment. The housing market will never fully recover with this in place, and the only appraisers that will remain are the incompetent ones who will gladly work for half of what qualified appraisers deserve but no longer earn. Way to go Cuomo and Mozzillo - way to rape an entire industry.