HVCC-Seems ok, tell me why I'm wrong

[George Hatch]

There will be an IVPI, there will be a hotline, and the IVPI will report to the GSEs and the FHFA. Regardless of what the lenders might want to do I doubt their actions will be ignored by appraisers. It only takes one disgruntled appraiser to pick up the phone. If the FHFA turns a deaf ear to such complaints, well, that's what the media is for.

I still don't think the HVCC will put that many MBs out of business. That is, not the MBs who have been writing honest deals. They're just going to have to change their gameplans.

Those changes might actually result in more appraisal assignments. Those of you who are dependent on MBs would be wise to refrain from burning your rolodexes just yet. I think they're still going to need you.

 

[George Hatch]

BTW, in case anyone missed the meaning of the last paragraph above, allow me to be a little more clear: I think some appraisers may finally find a way to sell desktop appraisals and phased assignments, and do so without running afoul of the Religious Police.

When the MB orders a DA they literally may not know which program they're going to shoot for. That means that some of those assignments will end right there due to the loan eventually going to a GSE or other HVCC-observant lender, whereas others may get bumped to a more comprehensive SOW and report. If/when that happens, nobody will be able to arbitrarily say that all phased assignments automatically involve improper contingencies by definition, because the common experience will be otherwise.

 

[Kevin Mc]

What are you talking about? The MB doesn't contact the AMC for any reason at any time. The lender that they submit the loan to is the one that orders the appraisal. The MB won't even know which AMC or appraiser is used.

That is incorrect. All corresponding brokers for Chase have already signed up with the three suggested AMCs that Chase has approved. The MB will be ordering the appraisal directly from the AMC. When the HVCC is carved in stone and enacted Wells will be insisting all MBs order through Rels etc.....

 

[JSmith43]

MBs are starting AMCs!!!!! The HVCC does nothing to stop the madness.

Pam, here's what I found out recently: A few big banks that already have affiliated AMC's are requiring of their brokers in the wholesale channels to use their AMC to order appraisals or they will put the appraiser through some costly review, etc.

The stagecoach outfit started this effective 1-5-09. Others, as of 5/1/09.

It does not effect enhanced brokers or brokers with correspondent relationships at this time. In other words, it focuses on the little guys that can't qualify for a certain account status. By and large, I think it will weed out the right ones, falsely weeding out some good ones.

Just like the rest of you, I am watching things play out & have no idea what will ultimately happen. If the history of licensing is any guide, one should not hold their breath waiting for a dramatic outcome.

 

[Ed Woodruff SRA]

HVCC will cost us money

Joe, I have not read the other responses - someone has probably already addressed this - but if not, here it is. Whether brokers can order appraisals or not, the fact is, some of the major lenders (Wells Fargo, for example) are already requiring that appraisals be ordered from specific AMC's. This involves a giant hand in our pocket taking a portion of our fees. That is why the HVCC is not ok.

 

[Howard Weeks]

Mortgage Brokers
Q32.
May a lender accept an appraisal prepared by an appraiser that was ordered by a mortgage broker?
No. The Code does not allow a lender to accept an appraisal prepared by an appraiser that was ordered by a mortgage broker as noted in Section IIIA. of the Code.
Q33.
May a mortgage broker order an appraisal directly from an appraisal management company that was specifically authorized by the lender?
No. The Code prohibits brokers from ordering appraisal services.
Q34.
Does the Code permit a mortgage broker to select an appraiser from the lender’s list of approved appraisers, if the lender is responsible for the relationship with the appraiser, including compensation?
No. The Code prohibits lenders from relying on an appraisal where the broker had a role in selecting, retaining, or compensating the appraiser.

 

[RitaB]

I got an email a few days ago from an AMC company I have never heard of. He stated that if I referred any MB's to him, all I would have to do is let him know that I referred them and he would be sure I got the order. Has anyone else received the same email?

Please forward that email to Pam Crowley. That AMC should be put out of business fast.

 

[RitaB]

As far as MBs pulling AMC strings and influencing who the AMC hires to do the appraisal, I don't get the impression that most of them are in a position to wield this kind of power, at least at this point. They are to a large extent, on their knees just hoping and praying they can get any bank to approve and fund one or two loans a month for them so they can keep their heads up (other than the mini-FHA-refi boom that is happening at the moment). The lenders/AMCs wield all the power now.

 

[Bama Bayou]

Having read through the Q & A a few times I can't find much wrong with it. While this thing may have been put together due to a lawsuit, the HVCC just makes good business sense for FNMA. The main thrust is to take the brokers out of the appraiser selection equation and put put it on the lenders shoulders where it should be. Then separate production from the appraisal process. Lenders are not required to use an AMC, they can if they choose to, and small banks are exempt.

I really like this part. Tell a banker about it every chance you get:

Q25. Is a lender required to use an appraisal management company for ordering appraisals? No. A lender may order appraisals directly from an individual appraiser.

As an added bonus, we will soon get a snitch hotline to complain about comp checks, pressure, etc.

The HVCC looks like it could have been written by many frequent posters on this forum. FHA is now the last refuge for the scoundrels.

 

[Karl]

SO where were ALL of you that NOW find this to be bad. There are a few very few but a few that were telling you a long time ago this was coming. Now that it's here you want changes. Might have thought about those changes when some were romancing Cuomo. While other were telling you Cuomo's history. Now we have a congress that CARES!! about the poor families!!! What you REALLY think our chances are of seeing anything that will benefit Appraisers, when we can't get 10 Appraiser's to agree on the color of a house!!! & God Forbid you say anything about General's banning together with Residential to assist in this!!!