FOX 5 in Washington, DC on the HVCC

  1. JL Wolf

    In 2005-2006, appraisers undervalued homes because appraisers wanted the market data to support the value, not just the “time adjustment”. Now, in 2008-2009 they undervalue properties because while sales data supports the lower value in markets that are clearly declining, poorly trained agents refuse to adequately provide good market analysis as it may squash their commission. The common denominator? Incompetent agents who ignore market data, with no regard for the long term needs of buyers. Or, they do not adequately prepare sellers with supportable market analysis that may not support their poorly completed CMA.

  2. The HVCC is and never was about removing “pressure” in the appraisal process. It was a “front” or smoke-screen agreement between Fannie/Freddie and NY AG Andrew Cuomo that got the NY AG to drop the investigation of wrongdoing by the GSEs in exchange for forcing a situation where any lender that wants to sell their loans to the GSEs will have to (in reality) use one of a small handful of Appraisal Management Companies (AMCs) for all appraisals, period. NY AG Cuomo was until very very recently on the board of one such AMC, and some of his biggest donors were AMC companies that are benefitting TREMENDOUSLY from this abhorrent misuse of power. What’s more, is that this HVCC is a direct power-grab by the banks that would love nothing more than to force consumers to have to use their retail branches for all loan needs. By eliminating the broker’s ability to hire good appraisers that know their market and will work faster for their good client, the broker loses control over their business too. This works great for the banks they directly compete with, since not only do the banks now get to use the appraisal process as a revenue generator (note the typical appraisal fee has increased from $300 to $400 just prior to the HVCC, to now upwards of $500 overnight–while still paying the appraiser only $175 to $225), they also get to fund the loan in the end, all the while, they turn right around and steal the broker’s client and directly market to the very same borrower–sometimes even before the loan closes…
    This HVCC does nothing to improve appraisal quality, does nothing to make sure that appraisers are not “pressured”, and effectively forces appraisers to either a) agree to work for as little as 35-40% of their typical wage or b) go out of business.
    I can’t believe that the America I knew, now actively works against its citizens, to make sure that the big international banks have absolutely no competition whatsoever…
    Any legislator that does not support HR 3044 which puts a moratorium on the HVCC is in the pocket of the big banks, and is no friend to consumers.
    There’s the rest of the story…