Update on HVCC

[Doug in NC]

http://www.appraisalinstitute.org/profession/podcast.aspx

An August interview with AI rep. Rep says HVCC is not likely to be scuttled, due to the massive amount of effort that has gone into it. Seems to be going forward with modifications based on industry input. Great.

Do you know the difference between a "loan correspondent" and a "mortgage broker"?

 

[Mike Kennedy]

http://mtgprofessor.com/A%20-%20Type%20of%20Loan%20Provider/what_is_a_correspondent_lender.htm


The law views the matter differently, however. Correspondents are lenders under the law, and therefore avoid having to disclose rebates. This has created a different set of disclosure rules for brokers and correspondent lenders, who are competitors, and much more alike than they are different. It has also created a wholly artificial incentive to pull brokers into larger entities, called "net branches", which are lenders and therefore don’t have to disclose rebates.

"Correspondents do have a risk that brokers don’t, which is that the investor can force a correspondent to buy back a loan if it doesn’t meet the investor’s guidelines."

 

[RSW]

Mike has is correct. A correspondent acts like a lender or bank and may be forced to buy the loan back.

 

[Indiana Jones]

An August interview with AI rep. Rep says HVCC is not likely to be scuttled, due to the massive amount of effort that has gone into it.

Wow, what great reasoning.

"hey, we've got this crappy legislation that doesn't solve the problem, and everyone hates it, but we're going to use it anyway because someone put a lot of work into writing it."

Brilliant.

 

[Doug in NC]

Wow, what great reasoning.

"hey, we've got this crappy legislation that doesn't solve the problem, and everyone hates it, but we're going to use it anyway because someone put a lot of work into writing it."

Brilliant.

The same thought crossed my mind. This is what you call bureaucrat-think.