Friday, October 23, 2009

Appraiser’s HVCC Rules on Way Out?

Oh yay! Oh yay!  I might actually be able to talk to my buyer client’s appraiser again?


From mortgage officer Rob Chrisman’s blog, earlier today:



…It turns out that the HVCC, which has good intentions but arguably poor implementation and ramifications, could be on its way out. The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to phase it out, and allow all loan originators, licensed or registered in accordance with the SAFE Mortgage Licensing Act, to order appraisals directly. H.R. 3126 is the number of this bill. Although this is just a committee vote, and still has a long way to go, it is a “first step”…

You mean I can explain how the condo the appraiser compared my buyer’s move-in ready new crib isn’t a really good comparable because it was flooded, moldy, missing all the appliances and backed up to a 6 lane road? Oh yay!


If you’re not in the business, you can’t really imagine how frustratingly difficult it’s been to not be able to speak with the appraiser on the house your buyer client is purchasing. That’s been going on since about May of this year. I’d say about half of our appraisals come in low these days. Some significantly low, as in 10% to 13%. We’ve recently had a home appraiser refuse to use as a comp a house that was an exact model match, in the same community, that sold within the past 2 weeks. He had it in his head (apparently) that the house wasn’t a good comp. And weren’t allowed to  speak with him to find out why he thought that. Neither was the buyer’s lender. The deal hung in limbo for over a week. Grrrr!


The HVCC rules can’t die off soon enough for me. Want to know why? Read some excellent in-the-trenches reporting: