House Offer Includes Sunset of HVCC

In an announcement yesterday, Chairman Frank released the House Offer on the financial reform overhaul bill.  Language in the offer includes consumer protection, risk retention, mortgage reform and anti-predatory lending.

The proposed amendment for Title XIV includes the provision to sunset the Home Valuation Code of Conduct (HVCC). Below are all the proposed amendments for this title.

The House proposes the following amendments to the Base text:

  • Add House provision providing emergency mortgage relief for unemployed homeowners (House Bill § 10001, page 1675, line 15 through page 1680, line 4).
  • Add House provision for assistance to the neighborhood stabilization program (House Bill § 10002, page 1680, line 5 through page 1683, line 18).
  • Add House provision providing for legal assistance for foreclosure-related issues (House Bill § 9115, page 1536, line 21 through page 1540, line 2).
  • Amend Senate provision to provide the Department of Housing and Urban Development, the Department of Veterans Affairs, the Department of Agriculture, and the Rural Housing Service to define “Qualified Mortgages” for the loans they insure, guarantee or administer (Senate Bill § 1413, page 1812, line 7 through page 1813, line 9).
  • Amend Senate provision to revise the definition of “Mortgage Originator” relating to seller financing (Senate Bill § 1401, page 1782, line 20 through page 1783, line 11).
  • Add House provision to sunset the Home Valuation Code of Conduct and improve implementation of appraisal independence standards (House Bill § 4312, page 983, line 15 through page 985, line 15).
  1. Walt Humphrey

    Long, long overdue.

  2. Being in the real estate industry our market really suffered this last year. I had very little income. My home is financed with Chase Mortgage, a first and second lien.
    They gave me so much bad advice and were of no help with my mortgage. They told me they were doing a modification payment plan and would put my past due payments to the back of the loan. Now they came back and said no, I am 6 months past due. They took a payment I made towards my first lien and applied it to my 2nd lien.
    I feel we need the legal help from an outside source to communicate with these lenders. I often get an outsource person in India when I call and all they care about is gettign a payment.
    I also had a home listed that would not have been foreclosed on had they accepted a $10,000 less than pay off short sale. They ask an out of our area agent to come in and do a BPO. This came in way higher than the offers we were getting on the home. I feel the folks who do the market analysis for these mortgage companies should have some sort of certification or credentials and at least know the area they are doing them in.

  3. Rich

    Looks to me like the main focus of this bill (the word “bill” is right) is SPEND SPEND SPEND. I fully agree the HVCC needs to go. It has created a mess. But at the expense (again the word “expense” is correct) of driving our nation further into bankruptcy?

    If we could lose a truckload of the spending parts of this bill and just concentrate on getting rid of the horrible HVCC that would work great.

    HVCC has only cost the borrower more money, sent appraisal orders to the “cheapest” appraiser and not, necessarily, the most qualified. The standard AMC would gladly send an unqualified appraiser 75 miles outside their home area of expertise if they could find one to do the work for 50 bucks. In the meantime, they charge 400 or 500 bucks and keep the difference.

    There are “hit the number” appraisers out there, but they are the minority. Come after them. Leave the vast majority of us alone. We are experts in our “hometown” and try to do a good job.

  4. After 13 years of building a successful appraisal firm and performing accurate, defendable, high quality appraisal reports for my geographic areas of expertise, I have now found myself almost out of business and in direct competition with, out of area, unqualified to appraise property in my area, appraisers.
    This new breed of appraisers are performing appraisals for up to 50% less of a fee for AMC companies who claim to order reports to the most qualified appraisers for fair fees. The appraisers come from 100 miles away and perform reports in my farm area because they are willing to work for a cheaper fee. Anyone willing to travel outside their area and work for less money and perform substandard reports and yes they are substandard as these appraisers do not belong to our local board of realtors who provide MLS sales data to its members, do not belong performing work in my backyard taking money from my own pocket. Go work in your own backyard, work for a fee you deserve. Not lower fees people, higher fees.
    The HVCC created many AMC companies, that in order to make money now charge more money for appraisals then prior to the HVCC. This fee increase is directly passed on to the borrower. They now pay more money for an appraisal report that is performed by a appraiser who worked for less money, traveled outside of their own area and share a fee with a new 3rd party that can care less about that borrower, and or the area they are buying or refinancing in.
    The appraisers that were “hit the number” appraisers are no longer in the business they jumped into the business when things were good and “hit the number” to make good be great for them. These appraisers are the minority now. It is possible to have a business relationship with the person ordering an appraisal report, the last I checked it’s called BUSINESS. Since the existence of valuing property this is always how it’s been done. Now because of loose lending practices and pure greed from big lenders and a deal with the New York State Attorney and a large lender to stay out of a lawsuit the HVCC is the result. Now it’s the appraiser’s fault that all this happened. I DON’T THINK SO!!!!!
    We need to get back to local appraisers working in their local areas for local mortgage companies and banks. Give the business back to the locals who live and work in their neighborhood, people that care about their neighborhoods. Keep the money local that’s a start to rebuild.
    The HVCC needs to sunset now and allow the hard working and honest appraiser the ability to make money in their own neighborhoods.