Case in Point: I was one of the first people to raise awareness about HVCC (Home Value Code of Conduct in 2008 and while most of the public was unaware of its existence, they soon became aware when they couldn’t get a fair appraisal of their home, which impeded refinancing or selling their home. Consumers, mortgage professionals, real estate agents and displaced appraisers learned first hand how overreaching legislation with good intent can have bad consequences.

SOPA (Stop Online Privacy Act)

SOPA is by far the most dangerous piece of legislation I’ve ever seen introduced. It not only stands to put many businesses out to pasture, but could also limit online freedom, put a “firewall” in place to censor online activity and give far reaching powers to corporate giants. It will also break some components that are essential to how the internet works, while still not preventing piracy since there are ways piracy can and will easily exist despite this legislation.

Who Will SOPA Negatively Affect?

You. Me. Google. Facebook. Youtube ….. Many startups would be crushed by SOPA and existing business like Etsy, Flickr and Vimeo may very likely have to close their doors.

Why Your Voice Counts

The corporate lobbyists for the music and television interests that favor SOPA outspend technology companies 10 to 1 in Washington. Without your voice, SOPA may very well pass.

The freedoms we have in the US are what set us apart from other nations and enable us the ability to pursue the personal and business endeavors we cherish so much. I’m passionate about protecting our these freedoms, which is why I stand against SOPA.

What is SOPA?

About: Stop Online Piracy Act (SOPA)

Six Things You Can Do to Stop SOPA

Which Legislators Favor SOPA?

Related Posts:

1. HR 3915 Mortgage Reform Act of 2007
2. HVCC: Home Valuation Code of Conduct Update
3. HVCC: Lenders Creating Their Own AMC’s

Hope everyone is have a great Holiday Season and closing lots of loans. Just wanted to post a quick update regarding recent FTC regulation changes regarding website testimonials and how they affect your mortgage website.

LeadPress Update to LeadPress Customers:

One 12/1/09, the Federal Trade Commission enacted a new set of rules governing online endorsements and testimonials: http://www.ftc.gov/opa/2009/10/endortest.shtm. These rules set a new standard in insuring that testimonials are accurate and not misleading.

All LeadPress websites come with a testimonial page template, that has been turned on by default. The goal was to have a template that could be customized by you with your own original testimonials. It turns out that many LeadPress clients have left the default generic mortgage testimonials in place or were not even aware that a mortgage testimonials page existed.

To insure compliance with the new FTC regulations, LeadPress websites that have not replaced the generic template testimonials with their own original testimonials have had their “Client Testimonials” page changed from a “published” status to a “draft” status. This means the page is no longer visible to the public, but once you insert your own testimonials and are ready to make the page live again, simply push the “Publish” button on the write side of your edit page via dashboard > edit pages > “Client Testimonials”. Once your new testimonials page is live you can also re-enable menu links to it by going to dashboard > Tools > NAVT Lists and clicking on the green “enable” button on the “client testimonials” link in the “topmenu” and “bottonmenu” sections.

If you have already added your own original mortgage testimonials, no changes have been made to your website and there is nothing for you to do.

Have questions? Please direct any questions to us via a support ticket at www.leadpress.com/support/

Happy Holidays from the LeadPress Team!

Related Posts:

1. Testimonials
2. LenderHomePage Mortgage Website Design
3. LeadPress Mortgage Website and Loan Officer Website Overview

One way lenders are countering the lack of control and negative outcomes due to poorly handled appraisals by the AMC’s (Appraisal Management Companies) that lenders are forced to work with is by becoming AMC’s themselves. You heard me right, lenders are now starting their own AMC’s. This will give them more control over the process and help alleviate some of the bigger issues being created by HVCC.

Common HVCC Issue Lenders are Trying to Counter:

Via AppraisalScoop.com: Inman News author Jack Guttentag wrote in today’s story Appraisal rules backfire in down market:

“Because AMCs operate nationally but do not have appraisers everywhere, more appraisals are being done by appraisers who are not familiar with the local market. Appraisers working for AMCs are also paid less per appraisal than independents, which may induce them to invest less time.

Less knowledge by appraisers means more scope for bias, and in a declining-price market, the prevailing bias is toward lower values.

Related Posts:

1. HVCC Repealed: How HR 3044 Might End HVCC
2. HVCC: Home Valuation Code of Conduct Update
3. Mortgage Lending in Crisis: Insufficient Warehouse Lines Affect Lenders

There has been significant fallout from the enactment of HVCC including, higher costs for consumers, devastating loss of income for independent appraisers and increased loan turn times / fees. I can’t stress enough that for all the good intent, HVCC does more harm to the end consumer than good in the form of higher fees, longer turn times, and increased loan fees related to extending rate locks.

Not only would the passing of HR 3044 help refinance and purchase and turn times but would also help displaced appraisers that have been significantly harmed by the required AMC component of HVCC. Unfortunately many industry veterans have already left when HVCC was enacted as they were simply unable to continue making a living under the enforced AMC system. It isn’t out of the real of possibility that if HR 3044 was enacted that when it ends HVCC could be completely absolved or at least re-written.

Some signs are pointing to recent NAR pressure as being responsible for the creation of HR 3044. Unfortunately the NAR was completely silent about the ramifications of HVCC until after the fact. I wrote over a year ago about the lack of leadership exhibited by NAR President Richard Gaylord when he failed to mention a single bad element of that actually mattered in HVCC.

You can track HR 3044 here or view the NAMB Press Release.

How would enacting HR 3044 affect you positively?

Related Posts:

1. HVCC: Lenders Creating Their Own AMC’s
2. HVCC: Home Valuation Code of Conduct Update
3. LeadPress STRONGLY Opposes SOPA (Stop Online Privacy Act)

In an email to LeadPress, Douglas Bowes point out:

The HVCC causes the appraiser to have many reasons to appraise a property BELOW it’s true value – because…

• the appraiser is fearful of being kicked off the approved list because someone thought the value was too high.
• the appraiser is being paid less per appraisal, he has to do more appraisals… meaning not enough time will be given to justify a more accurate, higher value.
• So, far my experience has been ….appraisals are coming in about 10% less than the true value. ( 180k instead of true value of 200k).
• At a time when billions of dollars are being spent to allow as many refinances as possible, HVCC serves to actually DECREASE the # of refinances that are possible.

We were also contacted by Craig Butterfield, whom has been very active in raising awareness about HVCC. Craig pointed out this great CNBC video on HVCC and this article as well to us, they are worth a look.

Craig hand delivered the following letter to all 71 Congressional members on the banking/finance committee in DC last week.

I was there all week running through the Congressional halls with three other appraisers), I’ve also E mailed it to about 200 Appraisal board members in all 50 states, and spoke with perhaps 50 of them on the phone.

#################################

Dear Senators and Congress persons:

Please take a moment to review the attached information packet that relates to the new legislation that took effect May 1, 2009 regarding residential appraisals. We represent the more than 1,000,000 people whose livelihoods are being compromised by the passage of the new Home Valuation Code of Conduct (HVCC).

We believe this regulation has been part of the discussion in committee discussing HR bill 1728 (S896) pertaining to predatory lending, whose hearings were recently held in the Rayburn building.

The following is a summary of information contained in the following pages: The purported implementation of the new HVCC regulation is to eliminate a conflict of interest on the part of the appraisal process of a mortgage loan. However, as you will see, that is exactly the opposite of what the HVCC legislation will accomplish.

v Consumers will end up paying more for appraisals because they will be prevented from shopping the market if they are unsatisfied with a particular lender and wish to change to another. A consumer should be able to choose the appraiser, not said predatory lender, so, the consumer can shop for a competitive fee, w/o a lender mandating and controlling what appraiser must be used. Simply stated, let the consumers choose and decentralize control over the appraiser.

v The quality of appraisals will be reduced because appraisers that pride themselves in doing thorough and professional work will be forced to meet deadlines set by the HVCC via AMC companies that are unrealistic.

v Appraisers are being asked to do the same amount and quality of work for 1/2 to 1/3 their normal fees if put through the HVCC when in the past 2-3 years, the cost of doing business has increased. These same appraisals become the property of the appraisal management companies (AMC’S) although the appraiser is taking all liability for its content.

v The AMC companies, which will be the only ones allowed to order appraisals, are subsidiaries of the nations largest title insurance companies and banks. This is in direct violation of anti trust laws and the FIRREA 12 CFR 34 Banking laws. They will have a monopoly, not to mention a conflict of interest, as they will still be able to dictate their unreasonable demands to the appraiser. Freddie/Fannie/Gnma directors are stockholders in these companies.

v Mortgage brokers, realtors, title closing agents, as well as appraisers are being squeezed out of business. Their businesses have contracted considerably over the past 3 years but they still held on to a hope that they could weather the downturn of the real estate market. This legislation will be the final blow wherein they will be unable to recover from this economic downturn.

v Much of the success of this country has been due to the foundation of small businesses. This legislation is a direct hit to the small business person affiliated with the real estate market. What will remain are large conglomerates that will remove the safety net that is currently in place, due to obvious conflicts of interest-exactly what this legislation is supposed to be preventing.

v We are setting a precedent here for other industries. This will be just the first in a series of changes that will mark the undoing of the American free enterprise system. Thank you in advance, www.REAUnion.org C. Butterfield – 954-929-6094

Real Estate Professionals Free Trade Coalition

E mail: Info@Appraisalunion.org

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Craig also provided LeadPress with the following diagram:

HVCC Diagram

Related Posts:

1. HVCC Repealed: How HR 3044 Might End HVCC
2. HVCC: Lenders Creating Their Own AMC’s
3. FTC Mortgage Website Testimonials Update

For those not familiar with the basic life cycle of a bill (from govtrack.us):

• Introduced – Mar 26, 2009
• Referred to Committee – Mar 26, 2009
• Reported by Committee – (pending)
• Voted on in House – (pending)
• Voted on in Senate – (pending)
• Signed by President – (pending)

According to the NAFAC:

One key provision of H.R. 1728 would create a nationwide licensing and registration system for residential mortgage providers, something already included in the 2008 Housing and Economic Recovery Act. NCUA and other federal financial institution regulators are responsible for handling implementation for credit unions, banks and thrifts.

Tuesday’s session will be held at 10 a.m. in the Rayburn House Office Building. The committee said it may also hold additional sessions on subsequent days if needed.

Related Posts:

1. HR 3915 Mortgage Reform Act of 2007
2. Mortgage Lending in Crisis: Insufficient Warehouse Lines Affect Lenders
3. 11/9/07 NAMB Legislative Alert On HR 3915