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Hvcc

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Alexx

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Sophomore Member
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Jun 1, 2006
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Certified Residential Appraiser
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Florida
Can anyone explain to me what, exactly, the HVCC is and what it means for our profession?

Does the HVCC mean that lenders -- brokers, banks, credit unions -- are no longer permitted to select appraisers?

Is the HVCC going to have an adverse affect on our fees?
 

Alexx

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Sophomore Member
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Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Thanks, Paul. It looks like this code is going to change our business for the better: We won't get any more pressure from brokers; unfortunately, our fees may suffer.
 

Dan/Fla

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Jan 15, 2002
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Certified Residential Appraiser
State
Florida
To be honest, I really do not believe anyone here or anywhere, truly knows for sure until the powers that be; release the final draft, the one we have to live by.

I do believe that the ones working on the final draft are not and never have been real estate appraisers, thus they have no idea what it will mean to the appraiser industry. That is the sad part our professions is in the hands of those who no nothing or card noting about us.
 

Paul Isolda

Senior Member
Joined
May 20, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Some significant changes need to be made before this is implemented. Otherwise, it only amounts to a bunch of politicians getting their names on the news saying they are doing something to earn their pay. There are many flaws in the current document, not the least of which is that the lender will be allowed to maintain some ownership stake in the AMC. If this is passed as is, I think it will be a blank check for AMC's to take over the industry and a total disaster for good appraisers.
 

Alexx

Thread Starter
Sophomore Member
Joined
Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I agree, Paul, this could be disaterous for appraisers. AMCs could recieve large pay for small effort.

Two questions/comments:

Aren't lenders only allowed to have up to a 20% ownership stake in AMCs?

and

If the current HVCC is a draft, then its policies have not yet been implemented? When can our industry expect a final HVCC?
 

yr2525

Sophomore Member
Joined
Jul 21, 2008
Professional Status
Certified Residential Appraiser
State
Kentucky
I believe a few months ago, the projected date of release was to be sometime in November (about right now). Implementation was to be Jan. 1, 2009. Per Fannie and Freddie, that date has been postponed to something like March and no comments have been made as to when appraisers and the lending industry might finally see/understand the final version. So the AMCs are running rough shood over everyone on the assumption that after the thing is released, they will own our industry. Some AMCs are already telling banks and lenders that it's a done deal and to beat the rush they should convert now to the AMC model of ordering appraisals to be fully in compliance when it is mandated for good. As of now, the real truth is no one knows what the final version will be and if it will really be mandated. Nothing but rumors driving the world for now. If implemented as is, we can kiss this profession good by in terms of making enough to support a family.
 

Alexx

Thread Starter
Sophomore Member
Joined
Jun 1, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Well what's worse: Having a mortgage broker breathing down you neck and threatening to take your livelihood away? or, Temporary accepting lower fees from AMCs until we can fight our way back to higher fees (if it were so simple)?

On a side note... Are FANNIE and FREDDIE the only ones abiding by the HVCC?
 

Summer

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Joined
Jan 2, 2008
Professional Status
Certified Residential Appraiser
State
Connecticut
Check out CARA....

http://70.183.170.181/ctreappraisers/

They are an organization in CT that is fighting against AMC's and their ability to mark up appraiser's fees. Every state should start a chapter. The group went to the Appraisal Commission this week and is in the process of getting legislation passed to ban AMCs from marking up appraiser's work.
 

Obsolescent

Senior Member
Joined
Jul 6, 2004
Professional Status
Certified Residential Appraiser
State
Minnesota
Well what's worse: Having a mortgage broker breathing down you neck and threatening to take your livelihood away? or, Temporary accepting lower fees from AMCs until we can fight our way back to higher fees (if it were so simple)?

On a side note... Are FANNIE and FREDDIE the only ones abiding by the HVCC?

I doubt its temporary. Too many appraisers willing to race to the bottom and too many willing to stay there. When does one take the leap to increase price without the fear of losing the AMC client if they were afraid to just say no in the first place.
 
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