Home Valuation Code of Conduct with Alfred Pollard
Table of Content
(I LOVE this guy, he writes like me!) Global DMS Launches SnapVal to Provide Instant, Accurate, Guaranteed... Jonathan Miller is President and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm he co-founded in 1986. He is a state-certified real estate appraiser in New York and Connecticut, performing court testimony as an expert witness in various local, state and federal courts. He holds the Counselors of Real Estate and Certified Relocation Professional designations.
In a post-HVCC world, there is both confusion and frustration regarding talking to appraisers. Agents can no longer directly choose an appraiser for most of their deals, so sometimes it seems like appraisal quality is left to chance. Maybe the appraiser will understand the local market or maybe he won’t. Of course the hope is the appraiser is a local expert who will do a thorough job and also initiate contact with the listing agent to ask questions about the subject property too. But that’s just not going to happen in all cases, so it’s important to be ready to talk with appraisers when you can.
Vendor BBQ and appraisals for Realtors
The only people who benefit from this rule are the AMC’s, the large banks that own them and the bureaucrats who got paid for months working on this rule to justify their job. In the meantime, here is a small sample of the aggregated data we will provide. It's the VA appraisers turn now to enjoy what the rest...
Here’s a one-minute video I did while at the Vendor BBQ. If an appraisal came in lower than the purchase price, the loan likely would be denied. Since loan origination staff is typically paid by commission, a failed deal meant no paycheck for them. If that happened too many times, Frank says, lenders stopped sending the appraiser work. I get asked quite a bit about HVCC and how I feel about it, so I wanted to offer my two cents.
About Jonathan Miller
Believe me, appraised values on residential homes is more art than science. The old saying was that an appraised value was just one man’s opinion. Send 3 different appraisers and you will probably get 3 different values. So enough background, here is the problem for consumers. Lower values equal higher interest rates and we know who benefits here.
– Federal Housing Finance Agency Director James B. Lockhart announced that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct effective May 1, 2009. The Code is based on an agreement between the Enterprises, the New York State Attorney General Andrew Cuomo and FHFA to improve the reliability of home appraisals. Following a comment period on the original Code, modifications were made by the Enterprises to reflect comments received. The revisions will facilitate implementation in the marketplace. We are committed to the highest ethical and professional standards to inspire trust and confidence in our work.
Annual Report to Congress
If the DOJ investigation proves fruitful, it is possible appraisal data could be investigated as well… The Department of Justice has sent a Civil Information Demand notice to CoreLogic. The CID requires CoreLogic turn over documents and answer questions. The article by Rob Hahn explains that the case revolves around not only the search features of the MLS systems, but the contracts and agreements on the use of MLS data by CoreLogic. If this investigation proves fruitful, it is possible appraisal data could be investigated as well. If this is the case, it will be a fast rolling snowball...
He is an Appraiser “A” Member of the Real Estate Board of New York and a member of Relocation Appraisers and Consultants, Inc. My industry changed in a huge way two years ago. Many real estate appraisers are actually no longer in business because they were basically sideswiped when something called the Home Valuation Code of Conduct came along.
In days past, loan originators would develop relationships with local appraisers who knew their market and conducted the appraisals required for consumers to obtain loans at various lending institutions. We would tend to try several appraisers and find out who do a better job at the most competitive price. Personally I would look for appraisers that had good people skills, were professional, friendly, on time , diligent and knew their local market. I would also expect the work to be done in a timely fashion and would also look for someone who understood that sometimes certain jobs needed to be rushed when the situation called for it. The Home Valuation Code of Conduct is a set of federal guidelines designed to make the home appraisal process more reliable.
Partially due to the economic cycle, but primarily due to the sudden control of the supply resulting from the HVCC. Frank said lenders commonly gave appraisers an estimated value for a home on each appraisal order. Working backwards from the estimate was faster. And since appraising homes is subjective — both an art and a science — it was easy to fudge numbers. Yet another third party huckster has entered into the real estate appraiser and appraisal arena.
The continued reliance of unregulated aggregators and bifurcated products continues to erode the public trust at the expense of discarding the profession specifically intended to promote the public trust. Little did I realize that this 2005 governor-appointed position would eventually lead me to sharing a stage in 2018 with... Receive Jonathan Miller's 'Housing Notes' and get regular market insights, the market report series for Douglas Elliman Real Estateas well asinterviews, columns, blog postsand other content. Can you share/post some blogs that you frequently regarding the topics of Appraising?
Services they provided for a Lender, Mortgage Company or Bank through an Appraisal Management Company or AMC as they are known. What’s an Appraisal Management Company you ask? Well for those that do not know, AMCs have been around a long time. Appraisal management companies are business entities that administer networks of independent... Real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County.
Since then, the appraiser profession has gone through many changes, none more impactful than creating the Home Valuation Code of Conduct or HVCC law that was put into effect after the crash. HVCC created the new normal for the profession where Appraisal Management Companies were installed as the firewall or third party between the appraiser and the lender. Overnight on May 1st, 2009, appraisers all over the country lost every relationship they... Also remove the 1 million + appraisal community.
Conventional conforming loans backed by Fannie Mae and Freddie Mac must comply with the HVCC. FHA loans and VA loans are excluded from compliance with the HVCC. This HVCC rule has many other components to it and in theory sounds like a good idea. However, this is un-American and against our capitalist nature. If lenders were losing money because corrupt appraisers were submitted false reports, they should have had the licenses revoked and moved on.
This makes the process of shopping a mortgage very pricey and deters you from doing so. …appraisers may finally have a chance at making the goal of fee transparency a reality… Keep your eyes open, events are happening fast. Specifically, how much of the actual “Appraisal Fee” being paid by the consumer goes to the licensed real estate professional and how much is withheld by the AMC “manager.” Now, over... I spent the bulk of today at the YPC Vendor BBQ at the Sacramento Association of Realtors.
This is probably not what you were expecting to hear, but HVCC has actually been a catalyst to take my business to the next level. Look, I’m not an HVCC groupie by any means, but rather than focus on the problems created for the appraisal industry due to HVCC, I have worked hard to expand niche areas of business instead. It’s in my DNA to find solutions – whether with business or community involvement. The HVCC portion of the suit, was written and implemented without challenge.
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