HVCC Repealed: How HR 3044 Might End HVCC
Great news on the HVCC front. On June 25th, Representatives Childers (D-MS) and Miller (R-CA) introduced HR 3044, legislation that calls for an 18 month moratorium on HVCC.
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.