I am predicting an appraisal shortage shortly because of the new requirements to be a Certified Residential Appraiser, appraisal fees reductions for appraisers of 40% to 50% by AMCs and mainly the HVCC introduced by AG of NY, which has caused appraisal fees to be reduced because of a middleman the AMC and putting appraisers out of business.

The new requirements to be a Certified Residential Appraiser are 200 Hours of education covering 10 modules, including 15 hour National USPAP Course and an Associate Degree. In lieu of a Degree, 21 college credits (7 courses) in English Composition, Economics, Finance, Algebra or Geometry, Statistics, Intro to Computers, Business or Real Estate Law.  A minimum 2,500 hours encompassing at least 30 months (2 ½ years) of acceptable experience as a trainee with a Certified Appraiser.  Pay scale is usually 50% of the Certified Appraiser fee.

The HVCC Code’s main purpose is to protect appraisers and the quality of appraisals from undue influence and conflicts of interest. It is not doing that. It is putting appraisers out of business because of the creation of AMCs. Ask the majority of appraisers. The HVCC is enriching the AMC’s. They are unregulated, send appraisal orders to the lowest bidder ($200 –250), charge $400-500 for an appraisal adding extra cost to borrowers, cause more time to close loans because of the paperwork exchange, have little knowledge and understanding of business and do relatively little work for their fee. There has been a large increase in the number of AMCs during the past year.

I like many of appraisers and mortgage brokers are going out of business after many years in the business because of the deal AG Cuomo cut with FHFA/FANNIE/FREDDIE---the HVCC. The process for getting a mortgage was simple, straightforward and efficient prior to the HVCC.  Previously the mortgage brokers collect data on the borrowers and ordered appraisals. They had access to many banks and would select the best for the client’s needs sometimes more than one. They could send the appraisal to different banks without additional cost to the borrower.  When the data was sent to the banks, the banks’ underwriter and appraisal departments reviewed the data and the appraisals respectively. If there were any questions from the underwriters, they were answered swiftly, no third party (AMC) involved. If it passes, it was sent to FANNIE/FREDDIE who reviewed the appraisals prior to acceptance. The Banks and FANNIE/FREDDIE made the decisions on approving loans not the mortgage brokers and appraisers. They caused the meltdown. They failed because of greed as indicated in the news and the world knows, Unfortunately, the mortgages brokers and appraisers are paying for it. As requested by several organizations the NY AG and FHFA should implement a moratorium on the HVCC and have congress pass legislation.

HVCC has forced the experienced appraisers out of the market because now the AMC’s are making half of the profit.  I am finding that my appraisers that have been in business for 20 years are leaving the industry and are being replaced with appraisers with little experience. 

95% of the crook mortgage brokers are already out of the industry so why can’t the lenders do a standard review of the appraisals they receive and call it a day.

Don’t you love big government?

even more fustrating is when we order a HVCC appraisal loan gets approved and then they add a condition of a review appraisal for broker to pay in the amount of 450.00...now we used their AMC for the HVCC appraisal  there should be NO review or if there is one it should be at lenders epense not broker or buyer....this defeats the purpose of HVCC.....so fustrating

I have always felt that the appraiser was tolerated as a nessasary evil in the lending process and definately at the bottom of the food chain when it comes to fees.  Now if an appraiser does mortgage lending work he has to share the fee with an AMC.  In 1989 my typical appraisal fee was $325 and I regularly competed two appraisals per day.  Today if I work a long day I can see two properties and write one.   That may be a statement about my old age as much as anything but I want to believe that its because my work is better.  We all know that lender/FNMA appraisal requirements have changed, with some making sense and others not.  My point is that I should be paid more for my work because the appraisal is better, not to say anything about the cost of living increases over the years.  I am working on an assignment today that will pay me $275 less Appraisalport fees.  Clearly in terms of income I am going the wrong direction. 

The HVCC change has severed approximately 70% of my customer base and the AMC work has not materialized.  I had a Broker tell me that the AMC he is required to use takes an average of 33 days to return the 1st edition of appraisals he requests (seems extreme).    He has a hard time competing with that kind of turn around.   I have been licensed and certified for as long as Colorado has required it and my complaint file with the state is empty.  My motivation to be a good appraiser was about two things, personal integrity and fear of losing my business.  I turned down more appraisals thant I completed because they weren't right.  I didn't want to be sued or pentilized for fraudlent work.  I valued my state certification.   The only thing I can say is that in my case and in the case of my associates the HVCC changes have not improved the quality of our work, it has taken the work away from us.

www.thackerappraisal.com

It is our tax money that is supporting the big banks who are controlling the lending process. Small business is out. Mortgage brokers are being replaced with big bank employees. The appraisal process is controlled by large AMCs often owned by big banks.

We paid for it with our taxes enjoy it!

Believe it or not, some of the largest lenders in the country are totally against the HVCC. The cost of broken locks and dead deals for bad appraisals far outweighs any profit earned from a partial share in an AMC. Personally, I don't don't think a single wholesale operation likes the HVCC. Maybe HR 3044 will actually get passed.

The FHA's announcement that they will not participate in the HVCC was interesting. The Commissioner of FHA, David Stevens said "he was well aware of the problems originators have been having with the code, and that FHA is not considering adopting the appraisal system now in place at Fannie Mae and Freddie Mac."

Sign the Petition at www.hvccpetition.com!

HVCC is causing way more harm than good.  There are hundreds of examples and now that the FHA has publicly stated that they are not adopting HVCC, we may have a chance to stop it, if we take action.

Visit the site www.hvccpetition.com and sign the petition, forward it to others, and add your stories for all to see.

We need to make our voice heard to make a change!

www.hvccpetition.com

Please contact your Senator, and incourage everyone that you know to do the same.

Here's a link to locate Senators for other states:

http://www.senate.gov/general/contact_information/senators_cfm.cfm