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Join LeadPress on Twitter!HVCC Repealed: How HR 3044 Might End HVCC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.
You can track HR 3044 here or view the NAMB Press Release.
How would enacting HR 3044 affect you positively?
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Trace Richardson has written 82 posts on LeadPress Mortgage Websites.
I'm Trace Richardson and am the founder of LeadPress. The LeadPress platform is the most powerful and customizable mortgage lead generation platform available today for brokers and bankers alike. I’m a licensed California Real Estate Broker and a former equities trader previously holding the Series 7, 63, 55 and 24 securities licenses.
17 Responses to “HVCC Repealed: How HR 3044 Might End HVCC”
Comments 
The HVCC rule needs to be done any with all together. It is hurting the housing market, the mortgage industry and the consumers. Someone needs to do something for the every dayAmerican for a change.
This is completely stupid. The HVCC helps establish real numbers for appraisals. The reason so many brokers want to have the HVCC repealed is because they can’t ask or talk about value with the appraiser. The appraisers do not like being told to come in at a value or they won’t get paid. That’s what was happening. I work in Client operations for an AMC. I know how bad it is. most of the brokers I come in contact with are scumb of the earth. they yell and scream because they don’t like the value of an appraisal. The veteran appraisers left because they knew they were not going to get those big bonuses when they came in at the value that was needed for an appraisal.
In the time have have worked for this AMC, I have had brokers threaten me, threaten the appraiser, and then tell me I was worthless because I would not have the appraiser change a report to reflect the value they needed it to be without some sort of proof.
The AMC is not the issue, it’s the broker. If brokers weren’t such nasty people, maybe the housing market wouldn’t be so out of sync from bad appraisers giving the broker what they wanted so they could get a paycheck.
I have many appraisers who are very happy with the HVCC and this AMC. Even if HVCC gets repealed, I think you will still find that many lenders like the AMCs because they review the file and make sure it complys with their guidelines.
DON’T HATE AMC- HATE THE BROKERS WHO CAUSED IT!!!!
Craig only stated one small side of the story. HVCC is a robbery and the banks long with AMCs are robbers. Craig being an employee of an AMC, his opinion is worthless due to conflict of interest. He is doing self-witness. The banks owes the AMCs. The banks got greedy, not only they want to make the mortgage money, now they also want a piece of the action of the appraisal business. That’s why they require the borrower to use the AMCs they own to order appraisals and charge a premium on it. The true cause of the housing market melt down is not the appraisers or the mortgage brokers, but the Wall Street along with the banks and the New York Dick General Andrew Cuomo. If the former HUD secretary didn’t push for more home ownership for the people who didn’t have a credit history to prove their credit-worthiness, if the Wall Street did not create those 120% Loan to Value ratio programs, if they banks did not as the devil’s advocate to sell these programs to the real estate market, we wouldn’t have such mess right now. But at the after mess, the bankers not only was not punished, but rewarded with more money – the appraisal business, that was robbed from so many small business owners by Andrew the Dick Cuomo and give to the bankers. This is worse than communism.
You know diddly-squat about the HVCC process and the negative impact it has had on consumers.
John – You are 100 % on target. Unfotunately the media has helped push the agenda of the banks. The general public do not realise the problems this causes to the economy. If you whant to eliminate small bussines and have the economic activity of the country controlled by a few major players (Banks, Car Makers, Industrial Conglomerates, etc) then HVCC is one of the tools to bring this about.
I’m a real estate investor that buys the bandalized houses the banks have not been able to sell at auction, spend an average of $30,000.00 repairing and remodeling them, and sell them after 4-6 months for an average profit of $20,000.00. I’ve had appraisers tell me “this is too high a profit” and underwriters tell me deny approving a buyer of my houses because “we don’t like flipers” and “they are not entitle to thei profit”!!!!!! Who will indertake fixing and repairing the vandalized properties the banks have foreclosed on after creating the buble with their incopetency in aprooving 120% LTV mortagages for buyers with FICOS of less than 500 and unverified incomes?
Dennis – I DO KNOW about the HVCC process very well. You are definetely not cuaified to talk about it since you only seem to present one side of the story. The apraisers make more money by appraising the homes to a lower value and avoiding “questioning” by the undrwriter. This means they have time to do more apraisals and make more money. Ehere is the incentive/motivation fo a fair/good appraisal? I’m in the process of initiating a class action suit to see if this can fix the problem. It was c court case in NY that was the tool used to create HVCC, maybe a court case can burry it also!
What?!?! It’s the brokers that caused the AMCs?!?!? Are you nuts? Here, let me tell you how it is… from planet earth. HVCC has done nothing but drive cost up, delay closing times, and stick me with a lender, that when rates turn, might not be the best option for the customer. So HVCC is more expensive, forces the customer to get slower service, and limits customer choice. How is this good for the customer??? Not to mention, appraisers, who don’t even live in your area, sit behind a computer and pull comps that low ball your property to come to a value. The brainchildren that thought HVCC would be a good idea, obviously didn’t work directly in real estate ever, and never thought of its possible consequences.
HVCC has been another Obama jobs killer! Every local appraiser in the Chicago market has either had to find something else to do, go into early retirement, or take the work that they can get from AMCs at half of their regular fee. The only people that have benefited from HVCC are the AMCs (they have a virtual legalized monopoly) the big banks,(customers once sent to the bank, are ‘stuck’) and I’m sure the politicians that wrote this legislation. The rest of America, however, has suffered.
As far as all brokers being rogues…that’s just plain false. I’ve been a broker for the last ten years and my customers call me first and keep coming back to me. Why would they do that if brokers are such monsters?!? The reason is, 1)we are advocates for our customers, 2) We take initiative and look for solutions for our customers, whereas most people in a bank just march to orders, and apologize to the customer for what they can’t do for them, and 3) we add extra value to the transaction (does your banker make you feel special for going to them? Probably not).
HVCC was horrible legislation. It should be killed immediately. The people who introduced this legislation should be called out, publicly humiliated, and then held accountable. The problem with Congress nowadays is that no one is publicly humiliated and shamed for their bad legislation, which just encourages more of the same bad ideas, by people who think they are saving us from ourselves. It’s time to wake up America! Charge the Bastille! Take your country back before it’s too late!
I agree totally with Mike’s assessment. The socialist bent congress has taken under the “leadership” of the likes of Pelosi, Reid, and Obama are sucking all the air out of this country. I just hope that typical Americans can take this country back before we are all forced to be Obamunists!!
Hopefully, only 3 years more of this sh _ t.
Would it be ok if we HATE both AMCs, the brokers that caused it, King Cuomo, FNMA, & Freddie Mac? As one of 60,000 appraisers that was told that I must do more work (see 1004MC) and take a 50% pay cut this year I don’t believe that would be too much to ask.
Appraisal Management Companies are not helping anything. Good appraisers wont work for the ridiculous fee’s they want to pay and many are using unqualified / unsupervised trainees. In our area we have trainees that are supervised by licensed appraisers that live 250 – 300 miles away which by nature is a violation of the USPAP Compentency Rule by the supervising appraiser in many cases. They have increased turn times and inflated the cost of appraisals. I have spoke with loan officers that have stated they are paying full fee’s plus an additional fee for the management companies part. Some management companies claim that they “review” appraisals for accuracy and compliance which is a violation of our state law that says if anyone does a review of an appraisal for a fee they must have an active / valid license to appraise in the state. Management companies are brokering appraisals to the cheapest bidder with no regard as to qualifications. Appraisers spend hours,years,and a considerable amount of money to get fully licensed / certified only now to have someone who hasnt invested any time or money to learn about appraisals take 25% – 50% of their fee’s. I have also had experiences with an AMC that shopped value and actually ordered a second appraisal to get the value the lender wanted so as far as improving the appraisal process…that doesnt wash either.
I am not sure where John got his information. However, we do not do business with the banks we own. The lender and the AMCs can’t be together- that’s part of HVCC. If we were together, then the AMC would not be a neutral third party. We actually have officers who ensure compliance with HVCC.
Many of the lenders will not change their plans even if HVCC is repealed. They have placed a great deal of time, money, and man-hours. The AMC reviews the files and sends a copy directly to the lender. (We actually had a broker white out appraisal information on a 1004 and type a new price over the value.)
I do agree with the 120% loan to value issue- that is completely accurate. I do not mean to say HVCC is wonderful and doesn’t have it’s issues, but it is NECESSARY to keep things more honest.
The AMC review of appraisals is a joke, most of the reviewers have zero appraising experience. The quality of appraisals is horrible.
What do you mean AMC’s and banks are not “together”?. Chase has a controlling interest in Quantrix, Countrywide a controlling interest in Landsafe (whether they exist today or not), And several others have, simply by attrition and volume (read “profit”) control over other AMC’s. I know Bank of America has a strong influence over a certain amc. I have been a residential appraiser for @ 16 years and worked hard to build a client base and worked extremely hard to turn out the best product I am capable of, and to build a trustworthy repuation in my area of coverage. I had relationships with some lenders and local brokers in which I could tell them up front “hey, you have a problem here with this deal/property”, and they valued my opinion. In one fell swoop that all went away and right now I am struggling to stay afloat. Struggling to the point that I may lose my home, etc. My income has been reduced that dramatically. I know we are in bad economic times, but the hvcc/amc’s are like pouring gasoline on a fire. I deal with several AMC’s and while some of them are better than others, we, as appraisers, are basically dealing with clerks. They dont know me any more than they know the next guy. I love what I do and cannot imagine doing anything else. I am sure I speak for many fellow appraisers when I say we are being forced out of a business we have put a lot of blood, sweat, and tears into. There is value in the product we provide. What’s next?. Eliminate the appraiser altogether and run “zillow” or some foolish avm on every property??. The lender may as well throw a handful of numbers in the air and chose the one you catch. The objective human element (a good, knowledegable and objective human element) cannot be take out of the equation with the expectation that the result will be worth the paper on which it is printed. I see hr3044 has been sitting dormant for a few months now. I fear its status will be the same two years from now.
That is my two cents….
Banks DO business with AMC’s they own! If anyone believes otherwise they are uninformed.
Appraisers need to stop whining. it is their fault we are in this mess because they did not have the backbone or ethics to call an appraisal the way it is. Regulate me PLEASE!!!! The government is doing everything but the right thing to fix the mistakes of the SEC that was not doing their job. End of story.
Remember, People do not take advice from people that are in the mortgage, insurance, banking, or real estate business. They are all crooks who have over inflated everything in order to make money. The government is bailing them out and once we are out of this mess, they’ll go back to their same routine in order to make quick money. If someone tells you every time you see them, that now is the time to buy. Stay away from that person because they are a scammer. Aka, stock brokers, Real estate agents, appraisers, and mortgage lenders.
Pretty broad brush you paint with there John Beck, I don’t think you are naive enough to actually believe what you have written. Surely there are one or two financial related advisers out there that are not “crooks”?
In fact, your comment is ironic coming from someone who advertises that one of their clients purchased 5 homes for under $200? Sorry, but your means of employment via a “get rich easily in Real Estate” business invalidates your credibility.
Dear Trace,
I whole wholeheartedly concur with your analysis of John Becks mindless praddle. He obviously has some self interest he is serving. The majority of the people I have meet in the mortgage business during the past 16 years treated their clients as second family, and why not? It make perfect sense. The best source of future business is from someone you have helped in the past. I admit there were a few bad apples in the lending business just out to make a quick buck. They, however have moved on long ago and gone into fields such as loan modifications and trying to get rich off foreclosures. Rats, running around the garbage can of human misery and an individual like this has the audacity to badmouth one of us in a public forum? Brash as well as intellectually challenged.
can anybody tell me why HR 3044 has not made it out of the committee yet for a house vote? it has over 120 co sponsors.