Comments on: HVCC: Home Valuation Code of Conduct Update

By: Ray K

Ray K — Sat, 16 Jan 2010 16:55:17 +0000

The real reason appraisers have not been able to fight the HVCC is the reason the HVCC was created in the first place, appraiser independence. We are not an organized group, most of us work for ourselves or a small appraisal firms. If the AG had a problem with an appraiser why did he not target the culprit and not the industry. If there is a bad cop do you change the entire police dept. or go after the bad cop. I agree that there are some bad appraisers, and I think everyone will agree there are some bad politicians.
Wasn’t the creation of the HVCC blackmail or extortion, but I guess that is legal from a politician. Maybe the Supreme Court needs to get involved.

By: Jas Parsons

Jas Parsons — Thu, 14 Jan 2010 21:52:40 +0000

Let me see if I’ve got this right, Gregg Wynn. I am supposed to stop taking appraisal orders for $250 instead of the $350 that I got for over fifteen years, so that I can receive $0 and a big long vacation from work. I should also go find a job elsewhere in this broken economy (so many jobs to choose from). My mortgage will get paid, my car payments will get paid, my children’s education will get paid, by who again?

Not every appraiser that is accepting these cutrate orders is an “ignorant newbie”. Some of us are still trying to make a living here. $250 is better than nothing. I guess some of you out there can afford to quit appraising. Not me. I suppose when my work gets down to the sub $20/hr rate, I will have to try something else (is McDonalds hiring?). I’m in my fifties and that is not a good age to start a new career. I will, however, continue to write appraisals to the best of my ability. It looks like this industry won’t last much longer though, and I will be forced to give up my lifestyle and be more of a burden on society. The fact that our government let’s all of this garbage happen makes me sick. “Home of the free”, my ass. Free is only available to those who can afford it in this country anymore.

By: Trace Richardson

Trace Richardson — Wed, 11 Nov 2009 00:01:07 +0000

If anyone has any thoughts on this and would like to share them as a guest post on a new Appraisal oriented blog we are launching, please shoot me an email at trace at leadpress dot com… thanks!

By: Gregg Wynn

Gregg Wynn — Tue, 10 Nov 2009 23:58:59 +0000

No Appraisal Management Companies are not paying “good money” they aren’t even offering a living wage. Why, because they’re greedy, and because appraisers have no coalition. I want to say this to those appraisers who’re doing discounted work for AMC, you’re a fool, a disgrace to your profession, and if you had any game, you’d be able to find a better job. As to the assertion that AMC’s are not pressuring appraisers, that’s bull, I know first hand that the pressure is being rerouted through the AMC’s, and it’s worst than before, since there are only so many AMC’s that we can refuse to accomodate when being pressured. Appraisers nationwide need to contact their senators, urging them to repeal HVCC, write or call them today!

By: HVCC: Lenders Creating Their Own AMC’s

HVCC: Lenders Creating Their Own AMC’s — Tue, 18 Aug 2009 20:31:02 +0000

[...] HVCC: Home Valuation Code of Conduct Update [...]

By: Mike Orlando

Mike Orlando — Sat, 18 Jul 2009 18:58:00 +0000

Since the inception of HVCC our company has lost from appraisals alone over 40 deals. This type of loss rate due to “low ball” appraisals on most of our listed properties will inevitably cause our business to fail. On every sales transaction we have been able to find more than enough sales comps, pending sales and active listings to prove reasonable value. Yet the appraisers being paid so little, pressed for time, and unwilling to consider the facts, choose the lowerst value in the area and that becomes the baseline for adjusting to their “low ball” appraisal method.
I think Mr. Andrew Cuomo in his infinite wisdom just had to add one more feather in his cap when inacting this law in the State of New York and then pushing it upon us all through this secretive legislation in the Senatate and House. I hope the people of NY vote this self aggradizer back to the farm where him and his father can contemplate their navals and write their next thriller on “Socialism in the US”

By: Jim Jendzurski

Jim Jendzurski — Mon, 29 Jun 2009 21:44:41 +0000

Actually I think the appraiser has more time on their hands because they are not chasing down their money or doing comp checks. How do you define your “true value” is this based on your experience as an appraiser or just someone who has ignored the fact that property values have dropped. I’ve been a field appraiser since 97 and it always amazes me that if the appraised value is low its incorrect. Plenty of HVCC compliant AMC’s are paying good money with no pressure to hit numbers. Bad banks and brokers along with bad appraisers landed us in this box. As far as the repeal, I doubt it. Once a bill is passed and the government goes in that direction almost impossible to change it.

By: April Williams

April Williams — Sun, 17 May 2009 18:22:57 +0000

Trace,

I think I can speak for most appraisers here. Paying me a higher fee will not encourage me to work harder to find that higher value. I 100% agree with Riick. What is happening is the appraisal management companies are sending their work out the lowest bidder who can work the fastest. Usually an unseasoned newbie. Your comment, “they will tend to do less work and in this case may correlate into less work being done to justify higher values resulting in lower appraisal values” assumed that bringing an appraisal in at a higher value takes more work. NOT TRUE AT ALL. The truth is, the less time you spend on research and analysis = unsupported results, HIGH or LOW. I can appraise a house on Ocean Drive, all houses on one side of the street are on the sand, worth more. If the house I’m appraising is not on the sand, but all my comprables are beach front, and I don’t to the adequate research, then the appraised value will come in HIGH. There are two big problems #1, experienced appraisers turn town low fee work, #2, many of those who do accept reduced fee assignment turn out equally low quality work, it’s a number game…quantity, not quality.

By: Trace Richardson

Trace Richardson — Mon, 11 May 2009 19:00:13 +0000

Rick: I think the point being made was that if somebody is paid less, they will tend to do less work and in this case may correlate into less work being done to justify higher values resulting in lower appraisal values…. makes sense to me.

By: Riick

Riick — Mon, 11 May 2009 18:55:28 +0000

The following quote makes NO sense:

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

“……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). ”
==============================================
Why would the value logically be LOWER instead of higher?
There is no rationale for bias in either direction.

The logical conclusion would be that more experienced
quality appraisers will stay away from mortgage work
as they will be paid only 1/2 fee, leaving the business
to the newbies who will make errors – high or low.

The good Workman is worthy of his pay.