GOVERNMENT TRIES TO HELP
Why is it every time the government tries to help they make things worse. Yes, in the “hey day” some lenders called the appraisers and put pressure on them to get appraisals done. This was done by the few. So, the government creats this new law HVCC, which stands for Home Value Code of Conduct.
WHAT IS HVCC??
HVCC changed the way appraisals are ordered. It use to be that a lender ordered the appraisal from a list of approved appraisers for their company. They would create relationships due to asking questions, asking for a rush or even sometimes asking “do you think this will appraise?” The last one was done, at times, to try and save the buyer $300 if the lender suspected the home would not appraise. Now, when a lender orders appraisals, they are ordered through an appraisal management company.
BIG DEAL WE ORDER AN APPRAISAL THROUGH A MIDDLE MAN
That is exactly what I thought. But here is what appraisers are telling me: “my wife logs onto a website and constantly tries to be the first to accept an appraisal…then she gets one and its on the other side of town.” “the appraisal management company takes half my fee, I now need to do double the work to make the same amount of money!” “I worked for years to build a business through relationships with other business people, this ruined my business over night. Now I struggle to get assignments.”
NOW THERE IS NO ACCOUNTABILITY TO THE APPRAISER
Yes, correct. Think of it…no one to press me to get work done on time. No one to check my quality. I answer to no one, it is all automated and I can’t be penalized for the quality of my work. Let me also say, there are a ton of very good appraisers that do great quality work. This law takes the reward from them for their quality.
This is wrong! Real life example: a loan is with the underwriter, she reviews everything and ask questions, this is why the lender is always asking for more information at the last minute. Anyway, with this file she has questions on the appraisal. She calls, she emails, she calls, she emails. The appraiser never responded. She had to go to an automated valuation system due to the appraiser not calling back to answer her questions. The AVS values the home much lower. Problem! But of course it does, those automated systems are always off, just check zillow.
WHAT CAN I DO????
You can read the below email, click the link and join the petition to end HVCC.
Hello HVCC Petition Signer:
HVCC Continues to devastate home values across the US. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC), which now has over 80 co-sponsors!
Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this code. You are well aware of the harmful nature of this horribly misguided code, but others may not be. We implore you to forward this petition link to everyone you know…EVEN IF YOU ALREADY HAVE. Let’s make sure this petition gets enough signatures to open the eyes of the representatives that have the power to initiate change!
480-652-2004