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HVCC Modifies Mortgage Broker Restrictions

Fannie and Freddie will now allow mortgage brokers to order appraisals through a lender’s designated AMC.

From Freddie Mac’s Home Valuation Code of Conduct FAQ:

Can a broker initiate an appraisal request through a lender’s designated appraisal management company (AMC)?

This process is permissible provided all of the following criteria are met:

The AMC is specifically authorized by the lender to act on its behalf and the AMC is not acting on behalf of the mortgage broker,

The AMC selects, retains, and provides for payment of all compensation to the appraiser on the lender’s behalf,

The appraiser’s client is the lender and the appraiser correctly identifies the lender as the lender/client on the appraisal report,

The lender has policies and procedures in place that comply with the Code, and

The lender ensures that the AMC has policies and procedures in place that comply with the Code.

This keeps a firewall between the appraiser and the broker, but allows the mortgage broker to obtain an appraisal if necessary. The big question though, is how any of this is enforced. I still haven’t seen any news about that.

Comments
  1. Riick

    ENFORCED? …say the Lenders and the AMCs.
    What kind of question is *that*?
    .
    “We would not coerce an appraiser.” – says the ghost of WAMU, who’s been accused of exactly that. (See history of the HVCC)
    .
    “We would not coerce an appraiser.” – says the soul of eAppraiseiT who’s been accused of exactly that. (See history of the HVCC)
    .
    Enforce?
    We can’t do that says the “IVPI” (Independent Valuation Protection Institute).
    We are the *proposed* regulatory arm of the HVCC
    but we don’t *exist* ….yet.
    Yes, 2 weeks to HVCC day and the regulatory arm has not been organized, funded, not even a head-man has been appointed!
    Does anyone reading this wonder WHY?
    How many Trillion dollars in Bailout money (?) and we get to hear the Lenders say:
    “Regulation? We don’ need no stinking’ Regulation!”

  2. David

    Wow…what a relief. For a second there I thought I was going to be required to surrender half of the income from my profession to banks. Oh wait…I still am required to do that. Silly me

  3. Laurel Little

    Anyone taking bets on whether HVCC kicks in May 1st? Without the IVPI, there is no teeth or consequences, hahaha get it?

  4. Anonymous

    Let’s see. Cuomo finds nefarious dealings at a very large AMC. The solution? Give AMCs a monopoly on appraisals. BRILLIANT!!!!!!!

  5. Appraiser Dan

    Wow…now we’re getting back to a near perfect world! The broker basically gets to select “his” appraiser once more (and HVCC does what?), the AMC’s now get 1/2 of the income from appraisers and everyone is happy…right?
    Oh wait…everybody is happy except for the poor appraiser who is now doing twice the work he was last year and for 1/2 of the fee!
    Well..almost everyone gets what they wanted.

  6. Appraiser Dan

    Wow…now we’re getting back to a near perfect world! The broker basically gets to select “his” appraiser once more (and HVCC does what?), the AMC’s now get 1/2 of the income from appraisers and everyone is happy…right?
    Oh wait…everybody is happy except for the poor appraiser who is now doing twice the work he was last year and for 1/2 of the fee!
    Well..almost everyone gets what they wanted.

  7. Dan

    Wow…now we’re getting back to a near perfect world! The broker basically gets to select “his” appraiser once more (and HVCC does what?), the AMC’s now get 1/2 of the income from appraisers and everyone is happy…right?
    Oh wait…everybody is happy except for the poor appraiser who is now doing twice the work he was last year and for 1/2 of the fee!
    Well..almost everyone gets what they wanted.

  8. caroline cleary

    To any and all appraisers, not sure what you are going through, but my work has completely stopped. I’ve been an appraiser since 98, 3 boys in college and with the HVCC, I have no work..Finding it very difficult to get on with AMC’s, etc. Would love some feedback on what others are going through and if there are any websites, etc. This is our livlihood, I know I’m not the only one who’s work has ceased..Would love to hear from any and all…Not a happy Appraiser..nor SINGLE mom!

  9. I am still amazed that this is such a witchhunt against the broker/appraiser relationship…It seems everyone has forgotten that it was a LENDER and their own AMC that got that glory-seeking New York AG up-in-arms. I have been an appraiser for over 13 yrs. Yes on occassion I have been bothered/threatened of loss of work if I couldn’t “bring a deal in” at what was needed. Those were the same bottom feeder clients that I turned my back on long ago. The b/c lending slime that is now out selling insurance, etc. I was able to survive those fools and develop a healthy business with reputable brokers in my community. some of which are Rotarians and highly moral people—but now I can’t survive because the HVCC has made my client based business obsolete. My old brokers are angry because there borrowers are now being charged $150 moer per file. What’s more, they trusted me after years of developing a relationship, with their clients. Many of my brokers have had other appraisers before and have been placed in risk due to appraisal quality Bottomline, they trust a number that I give them…anyone want to fight with me and form an association before were all broke?
    http://www.theappraisalhouse.com

  10. I am still amazed that this is such a witchhunt against the broker/appraiser relationship…It seems everyone has forgotten that it was a LENDER and their own AMC that got that glory-seeking New York AG up-in-arms. I have been an appraiser for over 13 yrs. Yes on occassion I have been bothered/threatened of loss of work if I couldn’t “bring a deal in” at what was needed. Those were the same bottom feeder clients that I turned my back on long ago. The b/c lending slime that is now out selling insurance, etc. I was able to survive those fools and develop a healthy business with reputable brokers in my community. some of which are Rotarians and highly moral people—but now I can’t survive because the HVCC has made my client based business obsolete. My old brokers are angry because there borrowers are now being charged $150 moer per file. What’s more, they trusted me after years of developing a relationship, with their clients. Many of my brokers have had other appraisers before and have been placed in risk due to appraisal quality Bottomline, they trust a number that I give them…anyone want to fight with me and form an association before were all broke?
    http://www.theappraisalhouse.com

  11. Gerry Evenosn

    HVCC Modifies Mortgage Restrictions? Does this mean that a Loan officer can call directly to a lender’s AMC and talk directly to an appraiser without contacting the leander first?

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