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Ken Harney on HVCC

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Tawfik Ahdab

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Certified Residential Appraiser
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Oregon
http://realtytimes.com:80/rtpages/20090105_washingtonreport.htm

"But already Fannie's and Freddie's new "home valuation code" is drawing controversy, and may well end up as an issue for Congress or the federal courts to resolve.

Why? Tops on the list: Mortgage brokers -- who still account for a significant percentage of new home loan originations -- are totally banned from selecting appraisers. Realtors are also specifically forbidden from having any say or influence over the choice of an appraiser on a sale transaction.

Well, you might ask: Since appraisers in the past have often complained about pressure from loan brokers and realty agents to "hit the number" -- that is, turn in valuations high enough to allow transactions to go to closing -- aren't they happy about the new prohibitions?

They're not. "
 

Randolph Kinney

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Apr 7, 2005
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Retired Appraiser
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North Carolina
So why don't they go after the people who failed to do due diligence?

Instead, they pass the buck to set up a third party to escape all that.
 

Workbox

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Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
So why don't they go after the people who failed to do due diligence?

Instead, they pass the buck to set up a third party to escape all that.
Will they be able to produce the actual report? The HVCC is just a cover up and to continue to do what they wish, now that we know what they have actually done and sold to Wall Street.
 

panappr

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Certified Residential Appraiser
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California
I think this is a case of becareful what you wish for. I think we all knew this was coming. Maybe now the "appraisal trade groups" and our State Boards will get involved. This may even backfire on the true intentions of Andrew Coumo and the HVCC. I'm hoping this will be the first of many lawsuits. The last thing the AMCs want are regulations, but how can they not be regulated and held responsible, if they are to be the newly anointed gatekeepers of the appraisal profession. I really think now is the time to open Pandoras Box. Let the lawsuits begin.
 

moh malekpour

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May 25, 2002
Professional Status
Certified Residential Appraiser
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California
I am not trying to generalize Mortgage and Real Brokers behavior for the recent housing problem. Some of them are decent professionals who like decent appraisers are the victim of their crook colleagues but most of them haven’t done a good job in handling their loans and appraisal needs in last few years to get sympathy from the public or legislators. I don’t know how their lawsuits or appeal to congress is going to work for them.
Decent appraisers are unhappy of HVCC because they are punished for raising their voices in doing a decent appraisal
When there was pressure on appraisers, it was the Skippy who said yes to pressure and the money to satisfy the crook brokers.
Now, that the source of appraisal orders has changed from brokers to AMCs, it is still the Skippy who says yes to low fee and quick turn time to satisfy the AMCs.
 

smackodu

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Joined
Aug 5, 2008
Professional Status
Certified Residential Appraiser
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Maryland
I'm beating my head against the wall. Get this through your heads folks. REGULATION DOES NOT MEAN RESPONSIBILITY. REGULATORS REGULATE WHAT THEY WANT TO REGULATE!!!!or WHAT THEY ARE TOLD TO REGULATE by POLITICIANS WHO ARE ARE BOUGHT AND PAID FOR BY SPECIAL INTERESTS. Pleazeeeeeeeeeeee Stop begging for regulation! You just might get it!

State Boards don't want to get involved. If they wanted to get involved they would have already done so. The one state employee here is totally overworked and the budget doesn't allow any new hires.
 

Pete Humphrey

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Joined
Jan 18, 2005
Professional Status
Certified Residential Appraiser
State
California
Thanks Tawfik for sending this article out. It summarizes the real problems with HVCC very well and succinctly. I'm going to send this to my loan officers who have been hearing about the HVCC but aren't quite sure what's going on. I'm one of those local appraisers that Harney has described........

"Many local appraisers have built up long-standing, legitimate relationships with brokers, small lenders and Realtors as sources of assignments."

I have fired countless loan officers who pressured me in any way from subtle hints to outright fraudulent requests. I have only a handful of good people that I work for. They never give me any pressure about value and trust my opinion. Now they and I are being punished for a problem we did not cause. The HVCC throws the baby out with the bathwater and gives the control to the unregulated idiots who work for the AMC's and the rookie appraisers who work for peanuts. The federal govt. bails out the banks that were the real source of bad lending practices, and we get kicked in the ***.

"Those management companies...are not regulated at the state or federal levels, and "place appraisal quality last," while refusing to compensate experienced appraisers fairly."

I know there are some of you out there that are good, experienced appraisers who work for the AMC's and are paid a decent fee. But if you live in any big city in the U.S. where the values have dropped significantly, I think you will agree that the AMC's have taken advantage of our quiet desperation by baiting the rookie appraisers who do a "good enough" job and will work for the lowest fee. Since I'm not one of those appraisers, I may very well be hanging up my shingle on May 1st.


"....his association (NAMB), which represents 15,000-plus brokers around the country, will file suit against Fannie and Freddie in federal court."
Wow - it must be nice to have an association that supports your interests by actually taking actions. It will be interesting to see what the AI does about this. I just got my membership renewal in the mail and I've got to tell you, I'm not so sure I will be writing a check this year.

This will be an interesting year!
 

tamsch

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Mar 12, 2008
Professional Status
Licensed Appraiser
State
Michigan
Does anyone have any ideas on how to weed out "skippy" from the appraisal world? They are the main source of the problem. Who cares that mortage brokers or lenders pressure us, if there weren't "skippy's" out there for them to turn to appraisal pressure would be a non issue and if these types of lenders and MB's weren't out there "skippy" wouldn't have any business. If every appraiser was somewhat competent AND ethical we wouldn't have this problem. The million $$$ question is how.

What if we had a centralized national database for appraisers AND lenders? Appraisers could aree to sign our own code of conduct and we all pay a fee to run and maintain (kind of like a union but without the union restrictions). Lenders and MB's could also agree to their own code of conduct, agreeing not to pressure appraisers OR "punish" appraisers for low values and score them based on the quality and service. Wouldn't most lenders want to work with appraisers on this list and vice versa? We could then also ban together on fee's we are willing to work for and have some collective clout. Again, how could they justify NOT working with appraisers who willingly agree to follow certain ethical and competency guidelines, even if it costs more for the appraisal wouldn't it be cheaper for their long term bottom line? There are a lot of gray areas to work out like how enforcement would work so more discussion is needed. Wouldn't the "skippies" and the unethical lenders eventually be weeded out?

Maybe one of the appraisal organizations could just add something onto there existing business model, wouldn't take much to get going. Anyone else have any other ideas? Maybe Pam wants to start a new venture......
 

D-Max

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Joined
Apr 26, 2003
Professional Status
Certified Residential Appraiser
State
North Carolina
State Boards don't want to get involved. If they wanted to get involved they would have already done so. The one state employee here is totally overworked and the budget doesn't allow any new hires.

I have to disagree with you on this. I think that some of the state boards may view this as a means of helping their budgets. I have seen that one board is proposing to charge a $3,000 registration fee to the AMCs and an annual fee of $1,000. Not only that, quite a bit of tax revenue has been lost by the states because of the lack of regualtion. The way that the proposed legislation is written they cannot utilize appraisers in that state if they are not registered. Trust me if a state sees a way to make money they will make it happen.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Trust me if a state sees a way to make money they will make it happen.
with a downturn just around the corner, states will be looking for revenue whereever they can get it.
 
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