Bank ownership stakes in AMCs

[Holden Lewis]

I'm a reporter and blogger for Bankrate.com and I've been writing lately about the HVCC. I think I might have got something wrong yesterday. I wrote that under the HVCC, banks now can own up to 20 percent stakes in AMCs. That was based upon my understanding of something an appraiser said last weekend at a panel discussion. But is that wrong? Was 20 percent *formerly* the limit, but now it's unlimited?

I'm confused because as I understand it, Cuomo sought to fix a conflict of interest between a bank and an AMC (Wells Fargo and eAppraiseIT), and he ended up with a legal settlement that increases the conflict of interest. Or am I missing something?

I have a copy of the HVCC. Can anyone share with me a previous draft of the HVCC? I've been told that Cuomo changed it over a weekend to liberalize the bank-AMC ownership question and I'm looking for confirmation.

If you want to see the blog post in question, look at Thursday's (June 25) post here:
http://www.bankrate.com/blogs/mortgages/mortgage-matters.aspx

*sigh* For the time being, try this link instead:
http://www.bankrate.com/natl/news/mortgages/mortgage_update.asp

 

[Socrates]

After much lobbying, it was my understanding that this stipulation was removed. What is frustrating is that all of the major lenders, Wells Fargo, Chase, and B of A, all have direct control over the appraisers. Landsafe, formally owned by Countrywide and now owned by B of A is, I think, one of the more flagrant offenders.

Way back when, Countrywide Branches started to complain that they had no control over the appraisal process. Some genius decided to create a new 'tier' of appraiser called a 'Premiere' appraiser. Premiere's were hand-picked by the branch and were given first crack at work. Staff appraisers were next in line then tier one appraisers.

Work was made available on an advertisement board and viewing the work was dependant upon who you were. Premiere's would see it for an hour before staff, staff would see it for another hour after Premieres and then whatever wasn't assigned would go to Tier 1 then 2 and so on. Tier rating would be dependant upon work quality (determined by reviewers via a grade) and turn time.

Recently, all of the HomeFocus appraisers were added to the Landsafe Roster and given priority along with Premieres and Staff. Subsuently, there has been only minimal work made available for rotational appraisers over the past three weeks. Where I was typically maintaining a pipeline of 15 or so orders, I currently have 1 order in the pipe line.

So in a nutshell - Nothing has changed. Branches still have total control of the appraisal process and it will remain a mess

 

[mister d]

The only item that gave the HVCC any validity

Everyone saw the removal of this part of the HVCC coming therefore creating the exact type of monster that brought about the creation of the HVCC. The truth be known is that the most disturbing part of the private agreement between eappraise and NY AG Cuomo is that know these imporper appraisals and loans are under lock and key as part of the agreement excuses them from any other jurisiction. Tens of thousands of improper appraisals that we know are out there and not one individaul whose license was utilized on these pieces of junk will ever be prosecuted. In fact the major lenders do everything they can to protect their coconspirators.

After the effective date of this fraud I decided that I would have to bite the bullett and work for AMC's. Of the first ten I signed up for their ignorance of the exact document that created their racquet/company was astonishing. 3 of ten requested precomps. 6 of ten requested a trip charge fee for those that didnt make value etc.. Then when I thought I had seen it all one of the most insane requests came yesterday. The following request came from US appraisals.

Dear Sir/Madam, Thank you for signing up with our Company. In reviewing your application there is important information that may be missing. This information will assist us in adding your firm to our fee panel. Please provide either lender or mortgage broker contacts that you have worked with in the past and have built a relationship with. Any company name, contact person, phone # and e-mail address would be appreciated. With your approval, we would like to contact them to verify your relationship. Once you have advised them please let me know via email and I will contact them promptly. I would also wish to discuss their current AMC selection, and provide our business philosophy as an alternative. If you have any issue with this discussion, kindly let us know at this time.
Thank you for your cooperation.


This is completely insane. May the force be with us all.

20 year appraiser

 

[mister d]

Banks are still violating the law. And not suprislingly front running rule changes

Even with the approval of the HVCC the banks ars still in violatin of RESPA and FIRREA by steering appraisals towards their AMC's. As the HVCC reads all a broker has to do is utlize an AMC. Major lenders are requiring that you utilize their AMC's, a clear violation of settlement procedure rules. I have heard ramblings in washington about a major overhaul of RESPA. Why do I have a funny feeling I know exacty what will be overhauled. A Million to Frank, A Million to Dodd and bingo you got your rules changed. The most disturbing part is that if money is fungible and most of the banks lobbying heavily for changes are TARP recipients then we are in affect paying for the lobbies aligned against common sense lending practices. Banks were given a gift by Mr. Cuomo, control of the appraisal process, they should maybe wait until their complete stranglehold is made legal.

If you are interested in Mr. Cuomos true motives I suggest you search "Cuom HUD fraud". I hope you have several days. Many feel it was procedures that were implemented during his tenure as secretary that have directly led to the crisis we are in currently.
'

 

[John Hassler]

Mr. Lewis

Here's the link to the (original?) March 3, 2008 version of the HVCC

http://www.freddiemac.com/singlefamily/docs/030308_valuationcodeofconduct.pdf



Additionally, here's a link to the January 7, 2009 Fannie Mae Announcement of the lifting of the 20% bank ownership restriction.

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0901.pdf

.

 

[OSU Beavers]

Landsafe, formally owned by Countrywide and now owned by B of A is, I think, one of the more flagrant offenders.

Tier rating would be dependant upon work quality (determined by reviewers via a grade) and turn time.

Recently, all of the HomeFocus appraisers were added to the Landsafe Roster and given priority along with Premieres and Staff. Subsuently, there has been only minimal work made available for rotational appraisers over the past three weeks. Where I was typically maintaining a pipeline of 15 or so orders, I currently have 1 order in the pipe line.

This has been a common misconception with LandSafe. Quality was never a factor in your Tier rating. It is only fee, turn time and volume (i.e. not turning down the tough ones). Quality was rated on something called your appraiser scorecard; however that was not used to move your Tier rating up or down.

I think the drop is due to the lower volume of refis. I also went from 22 to 11 in the pipeline. Before anyone gets froggy, yes they are all at MY full fee.

Holden, welcome to the AF. I have been a big fan of Bankrate for over ten years. Could you please note to your readers that the "Appraisal Fee" listed on their HUD-1 is NOT the amount paid to the appraiser, but also includes the AMCs fee. Thank you.

 

[Kevin Mc]

If you are interested in Mr. Cuomos true motives I suggest you search "Cuom HUD fraud". I hope you have several days. Many feel it was procedures that were implemented during his tenure as secretary that have directly led to the crisis we are in currently.


'

While you are at it you can investigate his role as a board of directors member for the now defunct AMC AMCO. Additionally Wayne Barrett of the Village Voice has written extensively on Mr. Cuomo. FYI

It was WAMU and Eappraiseit
HVCC allows 100% ownership of AMCs by lenders. Follow the money.

 

[mister d]

I'm a reporter and blogger for Bankrate.com and I've been writing lately about the HVCC. I think I might have got something wrong yesterday. I wrote that under the HVCC, banks now can own up to 20 percent stakes in AMCs. That was based upon my understanding of something an appraiser said last weekend at a panel discussion. But is that wrong? Was 20 percent *formerly* the limit, but now it's unlimited?

I'm confused because as I understand it, Cuomo sought to fix a conflict of interest between a bank and an AMC (Wells Fargo and eAppraiseIT), and he ended up with a legal settlement that increases the conflict of interest. Or am I missing something?

I have a copy of the HVCC. Can anyone share with me a previous draft of the HVCC? I've been told that Cuomo changed it over a weekend to liberalize the bank-AMC ownership question and I'm looking for confirmation.

If you want to see the blog post in question, look at Thursday's (June 25) post here:
http://www.bankrate.com/blogs/mortgages/mortgage-matters.aspx

*sigh* For the time being, try this link instead:
http://www.bankrate.com/natl/news/mortgages/mortgage_update.asp

The original HVCC had limits on bank ownership but everyone who knows Mr Cuomo and his past in the real estate industry knew that this not going to stand. To be honest that one sentence, limiting bank ownership, was the only part of the HVCC that gave it any validity. Mr. Cuomo effectively steered the majotiry of the appraisal business to the defendant in the wamu.eappraiseit case. This is comparable to sentincing a phedophile to community service at a daycare.

Another interesting fact is that Mr. Cuomo was asked why he didnt pursue WAMU to which he stated they are outside of his jusrisdiction. If you go to his bio it currently brags about how he is pursuing insurance companies and other criminals nationwide.

I suggest you search "cuomo HUD and fraud". Hope you have several days as his history in the mortgage industry is notorius to those who know. Many believe he is one of the primary culprits to the current crisis we are in due to his actions while sec. of HUD.

I also suggest you check out where he was working prior to becoming AG. Check AMCO and ntional valuation. He was on the board of this AMC with several other ex HUD employees.

If you really what to dive down the rabbit hole I reco "Dillon, Read & Co. The aristocray of the stock market" by Catherine Austin Fitts. Several chapters are dedicated to Mr. Cuomo and his

 

[NORTON]

Mr. Cuomo effectively steered the majotiry of the appraisal business to the defendant in the wamu.eappraiseit case. This is comparable to sentincing a phedophile to community service at a daycare.

that says it all.....

by the way....how is the article coming?

 

[Dee Dee]

Mr. Lewis,
Please keep us up to date on how your story is coming along...that is if you haven't already received a gag order.