Have you experienced the Home Valuation Code of Conduct (Middle-man Appraisal Mgt Companies) to help or hurt the housing crisis?
by Goodlife on June 29, 2009
I posted this question yesterday on Facebook and Twitter. I was amazed at the number of responses I received to my question during the span of only a couple of minutes.
Instantly Realtors®, homeowners, appraisers and lenders began to share their real stories, opinions and outrage at the new rules (many in 140 characters or less!). Although I have read several articles of late reporting and speculating about the new legislation, what I have not seen, prior to my Facebook post, are real stories of how people are being affected due to this, in my opinion, ridiculous regulation. Therefore, because of the many real stories appearing on my Facebook Wall, as a result of simply posing what I thought a benign question , I thought I would produce a ‘space’ for all to share their stories as to how this new legislation is affecting the already suffering real estate industry fighting for a market recovery.
UPDATE 6/30: We managed to get local TV coverage of this important issue affecting home buyers and sellers. To view the coverage, see KVUE’s webcast of the story.What is the Home Valuation Code of Conduct (HVCC)? HVCC is a new rule put into effect by Fannie Mae and Freddie Mac on May 1 that prohibits lenders from ordering appraisals directly from the appraiser. All appraisals now must be ordered using third-party appraisal management companies. Can you say ‘middle man’?
So, why such a bad idea? Many of these appraisers are not even local which means they know little to nothing of the local markets, don’t have access to MLS and certainly are not able to identify value based on the idiosyncrasies of different neighborhoods. This means they tend to deliver flawed valuations that cause transactions to fall apart. In addition, the new rule has spiked the cost of an appraisal to the consumer -the middle man management company needs their share of the fee for assigning an appraiser to a property — and has significantly increased mortgage processing time. While these factual impacts illustrate the negative impact HVCC is having on our market, nothing tells the story as well as real stories from homeowners, Realtors®, Lenders and Appraisers. If you, your client or your business has been negatively impacted by HVCC, please post your story. I will add mine in the mix as well.
UPDATE 08/19: The latest news coverage on the HVCC and the appraisal management company takes an insightful look at what led to the code and it’s impact on the economy: http://www.nytimes.com/2009/08/19/business/19appraise.htmlUPDATE 07/24: HVCC Clarification from Fannie Mae and Freddie Mac: http://varbuzz.com/hvcc-clarification-from-fannie-and-freddie/UPDATE 07/10:***Potentially $1.7 Trillion in equity has been lost due to HVCC.*** Check out the latest video from Think Big Work Small http://www.thinkbigworksmall.com/mypage/player/tbws/11895/1029714 and SIGN THE PETITION at http://hvccpetition.com.
UPDATE 07/01: The guys at Think Big Work Small launched a petition for the reconsideration of HVCC. Check out their video, discussion and petition at http://www.thinkbigworksmall.com/mypage/player/tbws/10777/1029714
UPDATE 07/01: The President of the National Association of Realtors (NAR) emailed all Realtors to express NAR’s concerns and the steps they are taking to resolve the problems that have been created by HVCC. On June 29th, the President traveled to New York and on the 30th he traveled to DC. We will keep you posted on the results of his efforts. In addition, NAR VP & Liaison to Committees Steve Brown shared his experiences with HVCC in his recent blog: http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html
UPDATE 07/01: There is a bill on the table asking for an 18 month moratorium on the HVCC. Read and then write your congressman: http://www.mortgageorb.com/e107_plugins/content/content.php?content.3794
Thinking of repainting the living room? Whether you’re changing the decor for your own sake or hoping to make your home more sellable, a new paint job is one of the most highly recommended ways to enhance the look of a room.
Consider these five living room wall colors design experts say work best.
Blue – Known