Why we need an HVCC

[c w d]

Its all ready happening with FHA. All deals higher than 80% LTV are getting reviewed. If credit scores are lower, its a field review.

The point is that there is no issue with "pushed values" by LO's on low LTV deals. If the appraisers and LO's knew that the lender would be ordering a review appraisal on every appraisal on deals over 80% it would change things dramatically.

We would then be in effect policing ourselves. . .and wouldn't need another huge government agency.

Let me get you in touch with my last client that ordered an FHA on over an 80% LTV. He's maneuvering to get out of paying for an appraisal that isn't coming in on target. No offense. But I think you're being a little naive.

 

[Bama Bayou]

I'm from the government and I'm here to help you. You will now line up for the g'ment rotation panel. All you need is an appraisal license. Minimum qualifications are also the maximum. If you have spent time and money to increase your education and qualifications more power to you but we don't care, just if you have a license and can get us an appraisal cheaper and faster than the next guy.

So bend over and let the rotation begin.

 

[ockyappraiser]

"But I think you're being a little naive."

I'll tell you what naive is. . .its believing that MORE government involvement is the answer and "big business" is the problem.

Our country has always worked best when market influences are left to govern industry. The government has NEVER done a better job at managing business than the free market.

You think that turning things over to the government will solve the problem? Wait until the 19 year old with one month in the business gets the same number of orders you do. . .and you both now work for 1/2 the fee. . .and wait 90 to 120 days to get paid.

But if you believe that government believes in what you believe. . .there is candidate that also believes!

 

[Mountain Man]

Oh Waaaaaaaaah. I can't run my own business properly, so I need a nosy burocrape to protect me from my own bad decisions.

 

[Summer]

Except they shouldn't be able to take our fees. We should be paid at the door or directly. I am tired of AMCs calling and trying to pay 185 to 225 a job.

 

[Summer]

Exactly. Get the check up front. I make them overnight it.

 

[Fred]

Hate to say this, but the fact that you gave him a value prior to obtaining your fee was just plain dumb!

And that is exacty why hair-brain government schemes are needed. To keep the just plain dumb from hurting themselves and accepting responsibility for it.

 

[ockyappraiser]

"I can't run my own business properly, so I need a nosy burocrape to protect me from my own bad decisions."

The market will deal with those that make bad business decisions. . .ask New Century Mortgage.

What many of us object to is that in its present form, the HVCC is a "unionized" system. Appraisals are given out equally to all. . .in spite of the quality of the work, years in business, years developing a client base. It will in effect be taking business from those who are successful and giving it to those who are not.

You can't blame the lack of business solely on "not hitting the value". My customers know the quality of my work. . .but they also know I hold myself to a higher ethical and moral standard than USPAP.. .and am accountable to someone greater than the state board.

 

[ockyappraiser]

One more thought. . .at the heart of HVCC is the idea that if the government steps in and takes over, those who have produced inflated appraisals can now do appraisals correctly. In other words, it was the bad mortgage brokers that made them do inflated appraisals.

At the heart of this is a moral issue. We either stand by the quality of our work and ultimately serve the public trust or not.

This new system does nothing to get the appraisers out of the business that inflated appraisals. . .but rather rewards them with part of the client base of those who successfully developed their business with integrity.

I favor a system that penalizes appraisers and mortgage originators for producing fraudulent work. Why not have all appraisals reviewed by an independent appraiser on loans over 70% LTV? The review is ordered by the end user/lender, not the originator. If an inflated appraisal is found, both the appriser and mortgage company are cut off from access to that lender.

HVCC is like campaign finance reform: "we couldn't help ourselves. . .it wasn't our fault. . .so lets change all the rules to that we can finally be honest"

 

[jturner01]

One more thought. . .at the heart of HVCC is the idea that if the government steps in and takes over, those who have produced inflated appraisals can now do appraisals correctly. In other words, it was the bad mortgage brokers that made them do inflated appraisals.

At the heart of this is a moral issue. We either stand by the quality of our work and ultimately serve the public trust or not.

This new system does nothing to get the appraisers out of the business that inflated appraisals. . .but rather rewards them with part of the client base of those who successfully developed their business with integrity.

I favor a system that penalizes appraisers and mortgage originators for producing fraudulent work. Why not have all appraisals reviewed by an independent appraiser on loans over 70% LTV? The review is ordered by the end user/lender, not the originator. If an inflated appraisal is found, both the appriser and mortgage company are cut off from access to that lender.

HVCC is like campaign finance reform: "we couldn't help ourselves. . .it wasn't our fault. . .so lets change all the rules to that we can finally be honest"

This makes so much sense.Why is it that people want government ro take responsibility for our lives? This is the same government that thought taking all the fields that were being used for food and converting them for ethanol. Now we have extremely high food prices from lack of supply.m2:

Make all parties involved responsible, seems easy enough to me, so they will screw that up too.