Comments on: HVCC Repealed: How HR 3044 Might End HVCC

By: Ralph Ferrara

Ralph Ferrara — Wed, 06 Jan 2010 14:48:21 +0000

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….

By: Guillermo

Guillermo — Thu, 17 Dec 2009 19:07:35 +0000

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!

By: An Appraiser

An Appraiser — Wed, 16 Dec 2009 15:07:21 +0000

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.

By: Randy

Randy — Tue, 17 Nov 2009 22:51:31 +0000

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.

By: Dennis

Dennis — Tue, 17 Nov 2009 01:21:26 +0000

You know diddly-squat about the HVCC process and the negative impact it has had on consumers.

By: Dennis

Dennis — Tue, 17 Nov 2009 01:20:20 +0000

The AMC review of appraisals is a joke, most of the reviewers have zero appraising experience. The quality of appraisals is horrible.

By: elipp

elipp — Fri, 13 Nov 2009 00:38:15 +0000

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.

By: David

David — Mon, 02 Nov 2009 14:40:35 +0000

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.

By: Steve Harkness

Steve Harkness — Thu, 22 Oct 2009 22:54:27 +0000

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.

By: Trace Richardson

Trace Richardson — Wed, 30 Sep 2009 03:46:58 +0000

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.