How long until HVCC goes away best case scenario?

[Michigan CG]

The HVCC is the best thing that has ever happen to us. No more shady LO's to deal with and no more comp check requests. I love it....

From a residential appraiser.....hhmmm...ethical appraiser who gets it?

 

[Doug DeMars]

No one said you have to deal with MBs or Comp Checks before HVCC. Go sign up with your fav AMC and be on your merry way. AMCs aren't going anywhere and they'll likely need you go faster and cheeper soon enough.

The HVCC is the best thing that has ever happen to us. No more shady LO's to deal with and no more comp check requests. I love it....

 

[smackodu]

The HVCC is the best thing that has ever happen to us. No more shady LO's to deal with and no more comp check requests. I love it....

Brad,

I really am trying to understand but I just don't get it. I was hoping you could give me some insight. I promise I won't attack you. I'd just like an answer to one nagging question. Why are you willing to give up a large percentage of your fee just so you don't have to deal with shady loan officers or comp check requests?

I've always been able to say no to shady loan officers and comp check requests. Since I was always able to do this on my own, why should I believe the HVCC is the best thing that has ever happened to us?

 

[Kevin Mc]

From a residential appraiser.....hhmmm...ethical appraiser who gets it?

Oh please. The HVCC is a mess as well. Most dishonest MBs are alive and well in the FHA world where they can do 97% LTV loans. Many are gone. The AMCs can often be just as manipulative as the MBs. Just read the good,bad clients forum.

 

[Hondo]

An official with the Mortgage Brokers Association told me last week that they don’t need the big banks to fund their loans, he says they have several sources to fund loans, they just need Fannie & Freddie to buy the loans.

 

[ockyappraiser]

"I really am trying to understand but I just don't get it. I was hoping you could give me some insight. I promise I won't attack you. I'd just like an answer to one nagging question. Why are you willing to give up a large percentage of your fee just so you don't have to deal with shady loan officers or comp check requests?

I've always been able to say no to shady loan officers and comp check requests. Since I was always able to do this on my own, why should I believe the HVCC is the best thing that has ever happened to us?"

Prior to last spring virtually all my work came from mortgage brokers. Even the best brokers, however, would want appraisers to "give them a heads up" if the numbers "were not going to work". They wanted to invoice appraisals and then "work something out" if the loan didn't close. And would call asking "is there something WE can do" if deferred maintenance was noted.

Again. . .mortgage brokers exist to close loans. The LO's are on straight commission. When times are tough. . .they are hungry to. In that type of system the will always look for the least past of resistance to closing the loan the quickest. It wasn't illegal for them (on their end). Frankly, if we were on their end and had families to feed we would probably have been shopping appraisals too since the system allowed it.

Now we have inflated values, foreclosures, etc. I made the switch to AMC's a long time before May 1 as I could see it coming. I treat all of them as potential customers. I counter appraisal requests where the fees are too low and turn down the ones that won't come up to what I need fee wise.

When LO's were ordering appraisals the average 1004 was $300 in my market. . .$350 for FHA. Now with AMC's I am at $250.00 average for 1004 and a little higher on FHA's.

Do I like giving up $50-$60 per appraisal. No. But factoring in I no longer spend hours marketing, driving, taking out Krispy Kreme donuts, having to answer comp check requests, etc, I overall like the new system better.

It also has one other upside. Those mortgage companies that never sent me work because I would not push values, etc., I now am doing work for because they have to order through the AMC's.

Bottom line: under HVCC the number pusher no longer has the ultimate edge to getting the residential work. I believe that the ones complaining about HVCC are the ones that lost that advantage. Because at the end of the day. . .you can offer a mortgage broker only 2 things. . .a faster turn time on report delivery, or a higher value (from their perspective). If both of us are getting the reports back next day. . .in the old system. . .which of us will the mortgage broker use? The one with accurate values. . .or the one that always makes his loan sail through?

 

[Functional Obs]

When would this take affect in the best case scenario ??

I personally wont believe it until it happens. Most likely the big banks will lobby the politicians to keep it in place because they dont want this nice new revenue stream to go away ??

My 2 cents anyway.

I love how this guy asked a question, "best-case," even, about when ... and everyone has a reply that basically says the question isn't valid ...

He wants to know when the HVCC expires ... what date ... when?

 

[George Hatch]

If congress got behind the bill they might be able to shut it down effective 01/2010.

The bigger question is what the lenders will do. Some of the lenders didn't even consider going to direct engagement when the HVCC rolled around - they just went straight to the AMCs. A real popular response to the question of why did they choose AMCs was that they wanted to distance themselves from the engagement of the appraisal for fear of being sued by their investors and shareholders.

Now I don't know how much of that answer was sincere but I do know that many of the lenders that did go with AMCs instead of direct engagement don't own the AMC in question and don't share in any AMC profits. Are they making money by choosing title company owned AMCs and getting a break on their other settlement services? Some probably are and some probably aren't.

For those lenders who really are trying to reduce their exposure to investor backlash from dealing with MBs, I'd say that they probably won't choose to go back to MB select unless they are forced into it by their competition. These lenders compete with each other in the market. If one of the bigs is able to start garnering a larger market share by going back to letting their MBs control the appraisal then the others won't likely sit on the sidelines and cede that market share to them. Regardless of the risks involved.

The one thing that I don't think the lenders will ever do is to step up the active reviews of MB-generated appraisals. They might buy an AVM-based comparo system to meet any percentage requirements foisted on them by banking regs, but they're never going to voluntarily hire a bunch of reviewers and give them the power to cut the donkeys off. That would cost them more than dealing with the AMCs, both in turn time and in overhead.

Moreover, a lender that is using MB-select as a marketing point for their wholesale division can't afford to lose MBs by cutting off the MBs pet appraisers for "merely" pushing values.

 

[NC Appraising]

I can't wait for the builders, who own their own mortgage companies, or have a preferred list of lenders, to be able to cherry pick the appraisers again.

Those were the day's!!

The Skippy appraiser using the same old builder sales over and over again and hitting the contract price over and over again. Those were the easiest appraisals ever!! Because we all know cost equals value!!

Really, how can one ever come in below the contract price, when the appraiser only uses other builder sales that represents the cost?

 

[Lee Lansford]

Actually things may change a little bit. Once Mortgage Brokers can go back to ordering appraisals at full fee then many appraisers will shun the AMC's like they did prior to the HVCC and then as the AMC's appraisal ranks began to thin they will be force to offer full fees to attract appraisers. At that point, AMC's won't really be profitable for the banks anymore. That means millions more in the pockets of the apppraisers instead of the banks, which would mean our lively hood would return.

It's as simple as that. Mortgage brokers create competition for banks, plain and simple.

Do you have any more recipes for disaster?

Is there anyone here who REALLY believes that the former relationship between appraisers and MBs was anything less than a disaster as to the effect upon the credibility of appraisals??!?!