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Rodney Wagner: (October 31, 2009 6:29am)

We dont need somebody else involved in the process to slow the system down. We need local appraisers who have the real pulse of the local market.You can not do a appraisal on rural america off of website comps!

Rodney Wagner: (October 31, 2009 6:28am)

We dont need somebody else involved in the process to slow the system down. We need local appraisers who have the real pulse of the local market.You can not do a appraisal on rural america off of website comps!

Just the Facts: No Spin: (October 27, 2009 6:19am)

Please stop your celebrating that we have unfortunately tied the eliminating of HVCC to the a bill that will strangle the mortgage industry. The Consumer Protection Agency Act will be another out of control HUGE government regulatory bureaucracy. They will certainly use the HVCC supporters as a facade for their anti consumer Choice & Control along with their anti small business constraints. Stop support for the Central Planning government Consumer Protection Agency Act. Put HVCC on its own merits. This is another example of poor leadership at NAMB, which has been unable to articulate any issue without stabbing mortgage brokers in the heart through more regulatory constraints. Wake Up!! The HVCC being tied to CPAA is BAD for the consumer and small businesses.

Starving Appraiser: (October 25, 2009 4:03pm)

I don't know what the magic number is. Client is a local/state bank... pre-HVCC I rcv'd orders from their "apprsl dept" and from some individual lenders who keep their list short. Now, post-HVCC, all request have to go through Apprsl Dept, and their list isn't as short. That's what I gather.

joecolorado: (October 25, 2009 3:41pm)

a bank I had as a client has to select three appaisers out of their stable, and then narrow it down to the one for the job, but the appraiser rotates in that system, so S/He probably wont be selected twice in a short period of time. I was not given any work for a while as I refused to alter my appraisal for a numbskull that worked there and he took me off the list. BUT that soon changed back when the quality of appraisal went south. I need to get out and take some comp pix, its started snowing here and it looks as though its going to be a nasty week.

Valuequestor: (October 25, 2009 1:57pm)

Starving: That's an interesting comment. They have maintain an extensive list of appraisers? Can you ask them how many the need in order to be in compliance. I have a client similar to yours and I don't think their list is that big. Anybody out there know what the regulations are for number of appraisers needed to have a compliant rotation / roster?

Starving Appraiser: (October 25, 2009 1:15pm)

CA.AAC-Not all lenders are of the character you describe. There are a lot of good lenders out there that want good quality reports from known, reputable, LOCAL apprsrs, which will enable them to base their loans on trusted reports, process and close faster. Again, WIN/WIN for all, including consumers that are losing rate locks and deals due to HVCC delays. The client I referenced in earlier post utilizes their own Apprsl Mngmnt Dept., not an AMC. Problem is they now have to utilize an extensive list of apprsrs to maintain rotation regulations, instead of narrowing the list to the good apprsrs that provide the best service and reports.

Starving Appraiser: (October 25, 2009 12:59pm)

Off-Great idea, I'd join @ fair annl mmbrshp fee. Blogs like this 1 would be a great venue 4 uniting nationwide. Some ideas from HVCC will hang on, original intent was good, but not well thought out, as we all see now. BUT >>> Just Friday, going thru the drive up of 1 of my longest clients local bank branch, & she ask me 2 come inside. Sd they were having a terrible time getting loans closed. Appraisals were taking over 14 days with no communication, no status updates, etc. Sd they longed 4 the days when they could order themselves & pick their apprsrs from a list, sd they would keep me running if they could. Sd 2 keep them informed on the HVCC ending possibility. They like the pre-HVCC mode, ... they send me work, I keep them informed & have the reports back timely. NEVER pressured by this client. I think if HVCC goes away, they'll push 2 get back there... more closed loans = more $$$ 4 them & the bank. WIN/WIN situation for all!!!

CA.AAC: (October 25, 2009 12:44pm)

Toby - It is reported that the amendment to HR 3126 concerning the sunset of the HVCC, after 60 days from the passing of this bill, mandates that Mortgage Brokers and others can directly order appraisal reports from State Licensed Appraisers. As you noted, Lenders (just another participant in a Consumer Mortgage Transaction) will attempt to "remain in control" of appraisal assignments, because it empowers them and their AMC's (appraisal processors) to control, pressure, influence, commingle and redistribute, for personal gain, the State Licensed Appraiser's Fee, which they collect "in advance" from the Borrower/Consumer. Once their "behind the scenes" activites undermining the system are made transparant to the New Overseers, via a New Innovative Appraisal Industry Monitoring System they are not aware of, such otherwise undocumented "improper conduct" will be an issue that will be administrated in terms of citations and administrative fines.

Toby: (October 25, 2009 11:24am)

Although the HVCC itself may be eliminated, it is highly unlikely that leners are going to go back to letting originators order appraisals. The few lenders I have spoken with have made it clear that some form of firewall will continue.

EDHLoanLady: (October 24, 2009 8:11pm)

I wouldn't trust the fraud numbers being released either. IRS isn't the smartest nut in the bowl to begin with. Many 1st time buyer programs allow a person to still purchase as a first time buyer when their spouse owns a property as sole and separate property. These married persons may be filing a joint tax return. I can see IRS picking this up as fraud and determining that the credit wasn't applied to a first time homebuyer just because home interest was being written off the year before by the spouse who owned the property separately. I dount they physically called each of these filers to determine their situations. More likely they assume the filing was fraud before finding out the facts.

Jboogie: (October 24, 2009 4:56pm)

Since HVCC is only an agreement between Cuomo and Fannie Mae and Freddie Mac, why can't we lobby California legislators to at least put an end to HVCC for all loans originated in the State. After all we our the 8th largest economy in the world and probably do more loans than anywhere else in the country. It seems like our politicians would tell Cuomo where to go?????

joecolorado: (October 24, 2009 4:35pm)

VALUQUESTOR. We used to have one in our office that had took up half the office wall, had a phone handset, you dialed listened to the connection and when the beeping etc. happened you quickly slammed the handset into a rubber cradle...talk about "Get Smart", all I needed was shoe with a phone in it, background music, a white mac, and a smarter better half, like agent 99 and I would have been all set. I already had the attitude...boy what a doofus I was/am.

joecolorado: (October 24, 2009 4:26pm)

Dont get me wrong, I am all for continuuing edumicashun, I take lots of it as often as I can, always try to learn something new. but I just hate it when, the rules get changed midstream, and they keep it quiet until its critical, generating revenue to replace fees from lost licenses.I am annoyed because the State doesnt do ANYTHING to protect us, they just punish, totally negative, and WE pay them to do just that! masochism at its finest..It would feel much better if the dog was back to wagging the tail. Still, I have remedied my situation, hopefully other appraisers in CO., will be able to obviate the problem generated by the State and get their USPAP in, so that no fines will be paid. The State also had the audacity to add a 10% surcharge on the penalty for some reason,so instead of paying $400 the fee to be mailed is to $440.talk about taking advantage.my cynicism was reinforced yesterday,...politicians, cant get rid of them and ya cant trust em.

Valuequestor: (October 24, 2009 12:24pm)

Sorry about that Joe. It makes you sick. These agencies end up thinking you exist to serve THEM. What garbage......On another note!....I can't remember the name of the machines we used back then. Pre-internet with direct connection to the mls database. We had like four stations at our office. You'd type in your commands / parameters and the machine would print out on thermal paper or on the older ones....type out your comp properties. Being on the FHA panel or Direct Endorsement meant ALL of us had to go into DC every few months and gather in a huge auditorium to be yelled at by the FHA Director.....I think it was called "continuing education".

Valuequestor: (October 24, 2009 12:02pm)

I wonder if there is any merit to a class action suit against the amcs for taking appraisal fees from appraisers while not being licensed, hiding the true nature and amount of their charges to borrowers, violating RESPA. Appraisers could use at least part of that money to organize and set up a national organization soley to represent us at the state level and to lobby on our behalf in Washington. I thinks that would be a good use of the funds recovered from the crooks.

Classmom2: (October 24, 2009 8:21am)

Why don't we investigate FINRA, Florida Bar, and other Government Agencies. Why should consumers get paid 12cent on the dollar if they SETTLE an Mediation-Arbitration case....The ones who make out are FINRA and Attorneys! Any help for JUMBO loans? NOOOOOOOOOOOOOOOOOO

joecolorado: (October 24, 2009 7:40am)

CO Appraiser.-yep I am in that one too.I just hate the duplicity of the State. They are depending on the fact that the entire huge list of appraisers to be audited cannot get into the classes or wont comply. The email sent gave instructions to send your penalty fee in to them IN RED no less, giving me the impression that this is engineered to garner additional revenue for the State due to the high number of non renewing licensees in Colorado. I just hate FUGE and SUBTERFUGE....and the games these people paly makes me so mad. But I was TOLD that I was in complaiance and now to be told at this late date that I am not infuriates me.

Off 80%: (October 24, 2009 7:36am)

Why doesn't TBWS start some kind of formalized process to unionize our industry so we can effectively lobby against Corporate interests in our over regulated industry? You already have the forum in place here & obtaining all states lists of certified appraisers couldn't be easier in the Information Age. It could prove to be a highly profitable venture & God only knows, we appraisers have gotten short shrift for far too long. We need to assure ourselves that toxic legislation like HVCC doesn't decimate our ability to earn a living now & in the future. We need a singular but common voice with funding for lobbying & watchdog reporting of industry wrongs on the part of AMC's & Lenders who are allowed to 'corrupt' the appraisal process then get off scott free while we're left holding the bag. Who hasn't ever been pressured by Clients to 'make the number', succumb to excessive & often dim witted underwriting demands or been lopped off a Lenders approved list for no apparent reason?

CO Appraiser: (October 24, 2009 7:02am)

Joe, I signed up for a class Nov 3 with Kaplan in Thornton. They also have one in Dec in Denver.

EdC: (October 23, 2009 9:16pm)

joe - take an online course. McKissock has a very good USPAP course, approved by my state board (check with your own) and you can finish it in a day. Have a nice weekend.

joecolorado: (October 23, 2009 7:22pm)

hows this for some sneaky crap. The State of Colorado just emailed today a list of appraisers that will be audited, I happen to be one of them, AGAIN. The rules changed regarding USPAP and the 7 hour test in 1/2007. I was initially informed in 6/2007 that I had nothing to worry about as I had already complied. NOW they are stating that I had to take the USPAP course in 2007 AND 2008 to be compliant. SURPRISE....all of the USPAP courses are now over for 2009 in Colorado. I am now not in compliance and face a $400 fine..and I now have to take the USPAP course in 2010 PRIOR to getting my license renewed(can't use for reaccreditation as its a penalty course), 2011 and it looks like in 2012 as well to be compliant for my next line of licensing. They have had this list to audit since 1/2009. Do you think there's something afoot.(no 12" jokes PLEASE)Just another way of the govt. getting more money from us.

real appraiser: (October 23, 2009 6:13pm)

How about that blacked out picture you had to go back for, damn that truly sucked. Everget your finger in the old photo, still do it but at least i can take 10 more for free. No more WHATS IN THE PHOTO TODAY?

CornerstoneKathy: (October 23, 2009 6:12pm)

oh and questor..when I used to stop at my favorite realtors I would bring muffins..they had the new comp books on a fishing line that was just long enough to get to the copy machine until it snapped you back to the conference room. I wish I knew those were the good days!

real appraiser: (October 23, 2009 6:10pm)

I had to make my own comp stamps in each direction, no labels to find, damn, im old, still got them, anyone interested?... anyone... anyone at all....

CornerstoneKathy: (October 23, 2009 6:10pm)

Hey questor..remember a comp in 30 days was almost impossible..we drove around with quarterly MLS books ...the best part was when 1 hour photo came in..it just sucked when you only had 1 deal and had to waste a whole roll of film..I cant believe that UPS wasn put out of business by PDF.. I bought my best client their first color printer so I wouldnt have to pay for overnight anymore!

Valuequestor: (October 23, 2009 5:46pm)

Glue Sticks, Hand Delivery, typewriters, 3 comps and out......what a bunch of old farts. Personally my favorite was making your own map with the copier, mapbook and the forms and worms comp & subject arrow transfers. "Snap I'm out of 3's". Every month they sent you a cool appraisal magazine. Free!

Valuequestor: (October 23, 2009 5:39pm)

From RealAppraiser: Disgusted Appraiser: Of course they have to say that. The HVCC was established so that they would not have to show their books on accepting bad loans knowing they were bad. This was the agreement, follow HVCC, no lawsuit, no public review of FRD/FNMAE process that got both CEO's million in bonuses, while the ships were sinking. If they say this is a train wreck, then they are set up to be sued again, they are just hiding the truth. I just can't figure out why Cuomo went along, unless it lined the pockets of former friends at AMC's he worked for or friends at HUD. Both profited!" End Quote.........Just remember this when you see this clown running for higher office. I don't want to see him as Governor of NY. It's too high profile. This man is a loose cannon with the worst kind of lust. The lust for power. Burn him!!! He looks like a witch!

Valuequestor: (October 23, 2009 5:32pm)

Faaaaarank, Brrrrrian....aahhhh good shooeeee. Way ta go boyezzzz. Ataboy Mr. Pair. Thanks

SoCalMtgGal: (October 23, 2009 5:01pm)

A big Thank You to Frank and Brian!! If you never heard all the details of HOW this mess in our industry really happened. There was a PBS Frontline special: "The Warning" on 10/22 that interviewed all the gov. parties involved. You'll learn more than you ever wanted to know about how scary Wall St. AND our government really are! You can look it up online and watch the video.

brian tbws: (October 23, 2009 4:08pm)

TO EVERYONE!! I really haven't had a chance to thank you guys for all you have done. Rescinding HVCC is in its infancy but I know its gonna happen and I feel like our collective effort has had a big hand in its eventual outcome. Though this piece of crap has devastated careers and lives of honest appraisers and put gray hair on lenders and realtors heads across the country its been a great learning experience for me. I've gotten to know so many people and listened to so many stories that I'll never forget. So thanks for all your kind words posts and emails. So lets see this thing through. A little shop keeping... Franks not fat, I got a haircut and neither one of us smoke crack...................................................................... yet

SimpleSolution: (October 23, 2009 4:00pm)

Starving Appraiser-I am right there with you. I have actually taken a part time job to suppliment my conventional appraisals because I would rather punch a time clock than work for an AMC. Most of them are down right crooks.

Starving Appraiser: (October 23, 2009 3:30pm)

I understand, from other posters, that AMCs require an apprsr to sign a "no liability on them" clause and the purchase of software that enables them to remove the apprsr's signature...HELLO!!! If that doesn't have unscrupulous<>(sp), unethical, immoral and down right fraudulent mode of operation written all over it, I don't know what does. Changing my nick name to I'LL NEVER WORK FOR AN AMC, EVER!!!

Look in the Mirror: (October 23, 2009 3:27pm)

To Anonymous - The new MDIA has put in another overlay to keep appraisals from being transferred between banks. If I want to move a loan to a new lender, a new Truth In Lending will be issued by the new lender. To be in compliance with the new lender,I would have to refund the money to the borrower for the appraisal. Can you imagine LOs having to return money to a client and start over, get another appraisal, no idea where the value will come in? What if the loan never closes or the borrower goes elsewhere? I would be out hundreds of dollars. No, I will just order another appraisal and have the borrower pay for it again. Makes it very important for LOs to make sure the borrower fits the lenders guidelines before submitting. Always something new this year to add another layer of challenge to any loan transaction.

NORTHERN CALIFORNIA APPRAISER: (October 23, 2009 3:25pm)

THANK YOU !!! THANK YOU !!! to NAMB, Frank & Brian & everybody at TBWS. After 31 years as an appraiser, the HVCC almost put me out of business. I had nothing left except FHA & a few bail bond appraisals, because I refused to work for any AMC's. There was nowhere else appraisers could look for help on this issue. The despicable old boy's club Appraisal Institute did nothing but harm us even more & we have no union or any other organization that looks out for our interests. It has been an eye-opening experience (not that I actually expected anything from the AI - they have never been on our side).

Starving Appraiser: (October 23, 2009 3:24pm)

Great post Brian. I Love HVCC seems to be the one hitting the crack pipe, probably why his post was so short. Either owns an AMC or works for one, my guess.

joecolorado: (October 23, 2009 3:21pm)

Important--thanks for the info I really appreciate it, I read the input yesterday and I am horrified that the AI condones this act against appraisers by designing a program that removes the signature. I am a critic of the AI due to their general arrogance, but this ntakes the cake. TO JPAIR,-thank you for the work you have done helping the demise of HVCC...now we also need to ensure that the problems relating to YIELD SPREAD and demise of the broker are rectified. I dont want to see brokers removed from the equation as Key bank appears to have considered that a done deal. They're currently advertizing for brokers to join their org after Jan 1st.......pompous asses...Where can I sign against this action...Is there a web site, how can we as appraisers help the broker situation?

brian tbws: (October 23, 2009 3:03pm)

To I love HVCC. We're for fixing problems not replacing them with bigger problems. If you think HVCC is a viable alternative to business as usual than I think you either havent thought it through, understand the process, or own a AMC. I appreciate your input and think dissenting opinions are always valuable but I think the boats sailed without you on this one. By the way I don't smoke crack.

Desert Dweller: (October 23, 2009 2:56pm)

The easiest way for the Feds to prevent this fraud is to Require the taxpayer that is claiming the credit attach a copy of the recorded deed showing the ttransfer of the property into thier name. As it is, They are requiring NO documentation, and are sending out refunds claimed on the good faith and honesty of the return filer. Easy to defraud? DUUUUHHHHHH.

qtrhrse: (October 23, 2009 2:46pm)

We all saw what "change" meant according to Prez. O'Bama. Let's hope this new "change" actually helps everyone.

Starving Appraiser: (October 23, 2009 2:38pm)

Thanks to all for the video summary. I thought I'd heard yesterday that it had actually NOT passed and I AM SO GLAD TO BE WRONG ON THAT!!! REAL - Hey as long as we can be civil, and we know we can, we will remain friends and agree to disagree on somethings. Every1s entitled to their pick of teams. CAN WE SAY "GO SEC"!!! I think some remnants of HVCC will stay around, but most lenders are no more in favor of it than apprsr are. And those who want quality to return to the apprsl process will shy away from the AMCs in the future. The AMCs are addl expense for them as well and who wants that.

I love HVCC: (October 23, 2009 2:26pm)

If you think HVCC will disapear completely your on crack. Become part of the solution not the problem.

Mr C: (October 23, 2009 2:23pm)

Always great content! I am President of a large property investment firm in Las Vegas, NV. Having this information provided to me everyday has been extremely valuable to me in my business. Fantastic job gentlemen!

SimpleSolution: (October 23, 2009 1:52pm)

And thank you for going to battle for us....

JPair: (October 23, 2009 1:51pm)

As President of NAMB, I want to thank everyone who signed the TBWS petition. The petition really helped in our efforts to have the HVCC amendment added to H.R. 3126. If you are not a member of your state and national association, I urge you to join and become a part of the team that is working to perserve our industry. We need to get the message out that as mortgage brokers, we care about our profession and the consumer.

Evil Genius: (October 23, 2009 1:45pm)

Clueless: If by chance that MH is serviced by Flagstar, they will do R & T

SensibleCounsel: (October 23, 2009 1:38pm)

LOANWISE: I don't know any lenders that like the AMC thing. That includes national guys. They don't want to have to review every report, and they want the loans. Even with the losses. One has to hope or reasonably deduce that the brokers still doing business are doing it right at this point. square hole, square peg. At any rate, borrowers will take the loss of .25-.50% in price to go to a lender they know can get the loan, as opposed to deal with the AMC and not get the loan, you know?

Atlanta LO: (October 23, 2009 1:35pm)

The SEC ref team should just change their name to HVCC and Go Away!

real appraiser: (October 23, 2009 1:27pm)

RC Appraiser; I must have missed something or really misunderstood. Did not FREDDIE say they were not using AVMS anymore since they would not be reliable. I must have completely gotten that wrong, it was a couple of months back. Does anyone remember this?

BBullGator: (October 23, 2009 1:13pm)

Starving Appraiser. Yep you guys played one heck of a game. They suspended the crew that called that game. Ya think we could get some Legislators suspended? You can't take any team in the SEC for granted as any one of them can get up for you, and every one gets up to play the Gators. You gotta get it done every week to make it to number one and stay there. We know cause we've been on both side of the equation. We'll be seeing you again in Atlanta in years to come, just not this one. We gotta get by MSU Saturday night, and we have not won there in a long long time. One game at a time, one deal at a time! Any thoughts out there on the NFMP?

RC Appraiser: (October 23, 2009 1:10pm)

Check out what Freddie Mac has to say about HVCC. With this kind of thinking why use appraisers at all? http://www.bankinvestmentconsultant.com/news/freddie-mac-home-appraisal-quality-2664257-1.html

Loanwise: (October 23, 2009 1:09pm)

Clulessdad: Try Santa Barbara Bank. I believe the guys name is Clayton or something like that. You probably will just have to give him the deal as I don't think they wholesale...But at least the client gets taken care of.

Clulessdad: (October 23, 2009 1:02pm)

Anyone know any lenders that do manufactured in CA, other that US Bank?

EdC: (October 23, 2009 12:59pm)

Loanwise: The amc's aren't independent. The largest are bank owned wholly or partially. With the GSE's buying ALL the loans the too big to fail banks can write, there's is no competition. Get brokers back in business and you know consumers and anyone that's heard of the amc's dirty deeds done dirt cheap will want to book with a broker. Consumers aren't getting what they're paying for. The banks don't care as it's guaranteed that the GSE's will buy all the crap they can write. That's why they don't care about quality and go for the cheapest and the fastest. Banks will not turn down large amounts of broker originated loans. Also, that's not all there is to it (3126) There's more to be added like "banks having to retain at least 5% liability in the loans they write. Do you think the banks are going to go for fast and cheap if they have to buy back the loan? Right now they're conducting their illusions on the taxpayer dole and pocketing tons of money. Wonderful ehh?

real appraiser: (October 23, 2009 12:56pm)

Starving Appraiser: We will finally disagree on something, I am gatornation, if you and I can continue to be civil after this, its all good, Gotta believe lender is a VOL, (thats were the anger comes from, Kidding, do not want to offend the Vols out there, both of you). I will agree calls were bad, I for one do not want to win on bad calls. go GATORS!

Kris A: (October 23, 2009 12:51pm)

Thank you for explaining the difference between MMG and RA. I think I can give up the MMG when my subsciption is up!

real appraiser: (October 23, 2009 12:47pm)

Starving Appraiser: Bill 3126 which would create whole new gov regualtions of entire industry to stop the mistakes of the past and future, small addition to end of it would get rid of HVCC right away as it is causing damage. Voted and agreed, now heading to senate. Has more teeth than hr 3044 since I think more politicions can get on board faster than hr3044 that needed to be explained to each and everone who is not in the industry, kinda stuck in limbo(probably at barney franks whim). Very good news, change may be coming faster through this, hope this helps. Somebody will point out if I misinterpreted video I am sure.

Starving Appraiser: (October 23, 2009 12:44pm)

Oh Yea, the GOOD OLD DAYS of daily tripS to the photo shop, typing reports on a typewriter, when "cut & paste" required scissors & glue. Gotta love digital photography, it's been a revolution of appraising. GO RAZORBACKS, BEAT OLE' MISS!!! Just like you whipped Gator arse last Saturday!!! And weren't the refs justly rewarded for that one!!!

Loanwise: (October 23, 2009 12:44pm)

BRIAN TBWS: What makes you think lenders are going to stop using some sort of independent process even if we get rid of HVCC???? I am totally in your corner, but don't see the reality of it. Lenders will see independent third party chosen appraiser as a layer of protection from buy backs (and more money in their pocket...) Please respond. Thanks, Loanwise

SimpleSolution: (October 23, 2009 12:42pm)

Wohooo!! Thanks for the update Brian...

brian tbws: (October 23, 2009 12:40pm)

We're shooting a new video for the petition. Basically amendment getting rid of hvcc passed the house finance services committee. Now it goes to the house for a vote. Then it will go to the senate and if passed off to the president. I don't know what time frames are but we're going in the right direction

Rate Alert Phone Blast in Error: (October 23, 2009 12:39pm)

If you got a phone blast from Rate Alert, we apologize. It was supposed to only go to a rate alert corporate account. It was sent in error. We've corrected the problem. Thanks for your understanding.

real appraiser: (October 23, 2009 12:38pm)

Disgusted Appraiser: Of course they have to say that. The HVCC was established so that they would not have to show their books on accepting bad loans knowing they were bad. This was the agreement, follow HVCC, no lawsuit, no public review of FRD/FNMAE process that got both CEO's million in bonuses, while the ships were sinking. If they say this is a train wreck, then they are set up to be sued again, they are just hiding the truth. I just can't figure out why Cuomo went along, unless it lined the pockets of former friends at AMC's he worked for or friends at HUD. Both profited. There is a bigwig at MDA solutions named Cuomo, dont know if related, its such a common name, you know?

Starving Appraiser: (October 23, 2009 12:34pm)

Will/Can some of you fellow posters provide a summary of the HVCC news in todays video? Obviously it's good news for our industry. I still can't view it, sending my HELP request to tech support now, again.

brian tbws: (October 23, 2009 12:33pm)

Hi Kris, thats an interesting question. what I'd suggest is check out the bond market and see who's got it right. I've checked it out.

Ron: (October 23, 2009 12:32pm)

I'm a mortgage broker in FL. We just had the rug pulled out from us on VA Streamlines. We were using a co. called AME and they stopped doing them without appraisals. Does anyone know a lender who can do these in fl. without an appraisal.

Frank: (October 23, 2009 12:31pm)

NoMoreSpam: Just go into your alert controller and turn off the mobile feature...

ILL Appraiser: (October 23, 2009 12:30pm)

That makes sense about Freddie Mac. Don't see how you can close a loan with a bad appraisal. DUH!

SC Broker: (October 23, 2009 12:30pm)

Kris A - Rate Alert is fully custom and MMG isn't. With rate alert you set your AM quote to the time that your favorite lender sends their first rate sheet. Then your tracking the bond market from there as far as your instant alerts and static alerts are concerned. MMG and RA also "ping" the bond market at different times so you'll never see the exact same price, and more importantly, RA also tracks from the prior close and MMG tracks from the morning open depending on what chart you're looking at. If you dive inside RA, you'll see it kicks MMG's butt. I love it. They just added a new indicator as well that makes it real easy to see where the market is at a glance. I love it.

NoMoreSpam: (October 23, 2009 12:27pm)

I really don't like the fact that rate alert is calling me on my phone especially with a misleading 888-888-8888 phone number and blasting me with their phone spam.

Bud: (October 23, 2009 12:25pm)

My wife the realtor just lost a sweet deal due to HVCC. Appraiser states he "feels" the market is declining although he appraised the house at 125% of the sales price. No data to support declining market in this area, just a feel. However, he is not familiar with the market. So the underwritwers required any additional 5% up front and the buyer can't put it together. HVCC is totally screwing up the industry.

SimpleSolution: (October 23, 2009 12:25pm)

I guess they haven't heard yet...LOL....are they addressing the issue of how many deals that have gone bad for no good reason behind bad appraisals?

Disgusted Appraiser: (October 23, 2009 12:23pm)

Freddie Mac says "Home Valuation Code Has Improved Appraisal Quality. Though it is early in the process, Freddie Mac said it has seen a tangible improvement in the quality of appraisals of loans it buys since the Home Valuation Code of Conduct took effect. Patricia McClung, Freddie's vice president of offerings management, said at the Mortgage Bankers Association's convention here last week that of the appraisals the government-sponsored enterprise receives, 15% more have come acceptably close to the automated valuation model it runs as a check. The improved quality of mortgages bought by Freddie and Fannie Mae reduces the repurchase risk for mortgage lenders because of lower defect rates, she said." I guess AVMs are the GOLD STANDARD. Are they kidding!! http://www.bankinvestmentconsultant.com/news/freddie-mac-home-appraisal-quality-2664257-1.html

Disgusted Appraiser: (October 23, 2009 12:23pm)

Freddie Mac says "Home Valuation Code Has Improved Appraisal Quality. Though it is early in the process, Freddie Mac said it has seen a tangible improvement in the quality of appraisals of loans it buys since the Home Valuation Code of Conduct took effect. Patricia McClung, Freddie's vice president of offerings management, said at the Mortgage Bankers Association's convention here last week that of the appraisals the government-sponsored enterprise receives, 15% more have come acceptably close to the automated valuation model it runs as a check. The improved quality of mortgages bought by Freddie and Fannie Mae reduces the repurchase risk for mortgage lenders because of lower defect rates, she said." I guess AVMs are the GOLD STANDARD. Are they kidding!! http://www.bankinvestmentconsultant.com/news/freddie-mac-home-appraisal-quality-2664257-1.html

Disgusted Appraiser: (October 23, 2009 12:22pm)

Freddie Mac says "Home Valuation Code Has Improved Appraisal Quality. Though it is early in the process, Freddie Mac said it has seen a tangible improvement in the quality of appraisals of loans it buys since the Home Valuation Code of Conduct took effect. Patricia McClung, Freddie's vice president of offerings management, said at the Mortgage Bankers Association's convention here last week that of the appraisals the government-sponsored enterprise receives, 15% more have come acceptably close to the automated valuation model it runs as a check. The improved quality of mortgages bought by Freddie and Fannie Mae reduces the repurchase risk for mortgage lenders because of lower defect rates, she said." I guess AVMs are the GOLD STANDARD. Are they kidding!! http://www.bankinvestmentconsultant.com/news/freddie-mac-home-appraisal-quality-2664257-1.html

Kris A: (October 23, 2009 12:22pm)

Any reason why Rate Alert and Mortgage Market Guide are so far apart on pricing? MMG says -16 and rae alert says -28. why are they different? They never seem to be the same.

real appraiser: (October 23, 2009 12:20pm)

EdC; Agree with you 100%, either he is brilliant or self serving, I bet on the latter, he has taken every photo op cause trying to look like the next savior to new yorkers, and they are biting. His approval is 75%. He is on his way to Governator with eyes to president. I could care less if he becomes gov, he will be out of our hair, but somewhere down the line he will be trying for President. Count on it. I think this was more self serving and that why he has left it behind. He will be out by the time it expires, but it needs to be yanked now, before it takes deeper root and becomes permanent.

ILL Appraiser: (October 23, 2009 12:20pm)

Gamtgguy-Mark at 9:36 said his wife was getting $122.68 per appraisal for Chase work. Wow! Chase doesn't need to do mortgages, they just need to order appraisals at what? $400 per. Has anyone figured out an alternative to HVCC and its original intent to prevent coercion?

real appraiser: (October 23, 2009 12:13pm)

gamtgguy; Could not agree more, Problem is, the AMC's are listening, some now require the appraiser to be with xx miles of property or you can NOT accept order. This is in response to that arguement(distant appraiser) made by mostly NAR. They still do not look for competent appraisers. Trust me you can find a bad appraiser within 20 miles of most anywhere. The arguements have to be thought out. I want HVCC to go away so I can try to get my clients back. I agree, we are all in the same boat, sucks on many levels!

EdC: (October 23, 2009 12:12pm)

Another reason for the amc model to lower values. If they raise values will it look like they're fighting fraud? Nope. If they do nothing will it look like they're fighting fraud? No again. They MUST lower values as it's the only thing they can do to make it look like they're fighting fraud to government onlookers. Cuomo and the amc AMCO. Ex-HUD chief who knew that the GSE's couldn't reveal their books because, as HUD chief, he wrote the law that said they couldn't ! Talk about the perfect set-up. He had it planned for years imo. Reward his bank/amc buddies and next stop governator. The guy's sue crazy and overly ambitious. Too bad he's not corrupt - again IMHO

gamtgguy: (October 23, 2009 12:02pm)

real appraiser: nobody said it made it any easier on anyone. The bottom line is that HVCC does not work. We have Jr. High appraisers doing 80-90% of the work and most travel an hour plus to visit a property in an area where they know absolutely nothing about the market, and for what $200?

SimpleSolution: (October 23, 2009 11:57am)

Oh Wow.....that makes sense. Well hopefully their full pockets will be short lived now....

real appraiser: (October 23, 2009 11:54am)

SimpleSolution: I have said it before, its in the AMC's interest to serve up a poor report, client then needs a review or second, third report to make client happy. This makes them a bundle on each bad job, think about it

SimpleSolution: (October 23, 2009 11:52am)

Hey thanks for the info. SensibleCounsel-I will let my clients know....

SensibleCounsel: (October 23, 2009 11:51am)

My last FHA loan, I used a So cal Lender, where the property is NorCal. I ordered the appraiser and just let her know who the bank was. No HVCC necessary. HUD wanted changes, I called directly and got it done, no AMC. Fabulous! Unlike conventional waiting periods. It was the only easy thing in the whole process.

SimpleSolution: (October 23, 2009 11:51am)

Because I think the banks are starting to realize that the AMC appraisals.......ummm.....yeah...not so good.

Brett: (October 23, 2009 11:49am)

why are lenders still requiring appraisal reviews on HVCC appraisals? My lender just required it on a conventional loan that went thru their HVCC company.

real appraiser: (October 23, 2009 11:49am)

Loanwise: I think I still have gluesticks around here somewhere. I had forgot about cutting negatives. just remember the twice daily trip to the photoshop, dropoff/PU. More stressed out today though. Sad to think those were the GOOD ole days?

Nor Cal Mortgage Broker: (October 23, 2009 11:45am)

To answer the question about Andrew Cuomo & how he was able to get Fannie & Freddie to agree to HVCC: Cuomo, as NY Atty Gen, has wall street in his jurisdiction, therefore he has claimed authority over anything sold there, like mortgage backed securities. Remember 5-6 years ago, when if you got an accept plus approval, you didn't need an appraisal? Well, it became common practice at some retail bankers, I believe Ameriquest and WaMu were the biggest offenders, to input the value into DU & LP way higher so the LTV would look like 30% when maybe it was really 80%, so you would get accept plus, so no appraisal. This was before they added the zip code value module. Cuomo's position was that Fannie & Freddie knew or should have known that these abuses of value were taking place and he was threatening to sue them which could jeopardize the ability to sell MBS. They responded by throwing originators under the bus with HVCC. HVCC is not a federal law, but a voluntary Fannie/Freddie rule.

ILL Appraiser: (October 23, 2009 11:36am)

Loanwise-I think it takes longer but as I get older time goes by quicker. The thing is the CYA aspect is greater. Everything is verified, re-verified, checked and double-checked, then proof-read twice. All that takes time.

SimpleSolution: (October 23, 2009 11:26am)

Hey LO's/Brokers-Give me your thoughts on this please. I just spoke to two different FHA reps that verified that they are not taking on the HVCC as it is. They said that what needs to be done if I am working with a broker is that the bank that you are going to use to fund the loan needs to order the appraisal is all. Basically if you are going to use say SoCalBank to fund your loan then you would need to call SoCalBank and ask them to send me the appraisal order. Is that something that you guys could see realistically being done from your end?

Loanwise: (October 23, 2009 11:11am)

ILL Appraiser. Soo Right, the hand delivery, sorting and cutting the negatives to keep in the file. Guess with technology today, then adding the additional forms/comps, it probably is about the same work time...

ILL Appraiser: (October 23, 2009 10:55am)

Loanwise-ah yes, the good old days the early 90's, right after direct endorsement but before lenders realized they had such power...I remember those. The days when an appraiser gave a value and that was essentially that. No AMC's, no comp checks interrupting the thought process, only three good recent sales were needed, no actives necessarily, and no 1004MC. The appraisals were believable and readily accepted as truth. I personally often got up at that 2:00 am you spoke of because I was generally wiped out by 10:00pm. And don't forget, we hand delivered the appraisals also, at least I did.

Seriosuly Speaking: (October 23, 2009 10:41am)

Put on your winter coats people. With this regime in office, and the insatiable desire to print money as if it were water, we can be assured that inflation is the next monster coming followed by another wave of "government help" a.k.a. socialism agenda to ensure the American way is totally and completely obliterated. There is a VOTE coming in the next few weeks. If you like where we are and where we are heading you dont need to do anything. If you DONT like it however, GO VOTE and MAKE YOUR VOICE AND OPINION HEARD!!!!

Loanwise: (October 23, 2009 10:39am)

Yes Mountain Guy, they were detailed. Problem was, I worked from 6am - 2am. Had to get out of that. This was when we ran to photo place and glued on the photo's. Nowadays, technology would have sped it up a bit. I would have hired help...However, could not find many that were good.

Frank Garay: (October 23, 2009 10:36am)

Your Freedom Is In Jeopardy - I could be wrong.. wouldn't be the first time, but, I believe that the tax credit is built into the 700 Billion stimulus package. So it's money already spent essentially. Again, I read so much on a daily basis, it's hard to keep it all straight in my little head. I know it's costing us money, but I feel, and this is just my opinion, that it's helping the real estate industry limp along. I think if we rip the band-aid off too quick, it could re-open the wound. Again, we're all entitled to our opinion and I appreciate yours.

BBullGator: (October 23, 2009 10:34am)

One thing is certain. If HVCC goes away some smart company will accept loans without forcing their "originators" (Yeah get used to the term)to use an AMC and they will be flooded with biz. It's (still) the American way.

Mountain Guy: (October 23, 2009 10:33am)

WOW, 60 appraisals a month? I bet those were some detailed reports!

Loanwisse: (October 23, 2009 10:26am)

I DOUBT THE REMOVAL OF HVCC WILL CHANGE THE BANKS OR CORRESPONDENT LENDERS WAYS. I was a Realtor in the 80's, Appraiser in 90's (it wore me out doing 60 appraisals a month...), then a lender for 15 years now. I question whether the "banks" and correspondent lenders will even get rid of the AMC idea even if HVCC is dropped. It generates them money and gives them an added layer of buyback protection. They probably will not go the other way on that. LO's need to step up their game and protect their income. The only way they can do this is to be knowledgable about the changing guidelines and spot those red-flags in a file. Furthermore, LO's need to have MLS in their local areas or get sale information from title companies and analyze the comps so they are not wasting time on a deal that won't go through.

rallyeman: (October 23, 2009 10:26am)

you are correct gamtgguy, maybe maybe they should also be charged a 10% surcharge. This is just more obama crap

real appraiser: (October 23, 2009 10:24am)

gamtgguy; I know this sucks, but even if the original lender "releases" the appraisal, the appraiser still can not touch it, including changing the name, thats why a new one must be ordered, but the appraiser can charge a reduced fee to complete a new order, I think lender even said this on a prior blog. We used to reassign all the time until they made it clear that we could not anymore. But do not start in with us, this did not make anything easier for us. I for one, would rather get a new client than just a one time fee for an angry LO who would still rather use his own appraiser.

Sunny: (October 23, 2009 10:24am)

Congrats guys. It is good to know we contributed to making a difference and killing HVCC.

Your Freedom Is In Jeopardy: (October 23, 2009 10:23am)

I'm baffled that you guys are still on this tax credit band wagon. In the same post that you mention that the fiscal deficit is $1.42 TRILLION! (more than the combined deficits of our country's first 200 years), and that the tax credit program is loaded with fraud in just its short existence (what a shock), you mention that it is "sorely needed." Huh? For what reason, so you guys can close a few more deals that you wouldn't close otherwise? Our country is flying off the cliff fiscally, and just for purely selfish reasons you advocate a program full of fraud, that adds to our exploding deficit, that also distorts economic reality. I could go on and on, but I am really disappointed that you guys support this program, without even explaiing why you do. You need to put the motivational selling books on hold for awhile and crack open an econ. book (one hopefully not written by Paul Krugman). Good work on HVCC, however.

BBullGator: (October 23, 2009 10:20am)

To Mark Green, That's BBullGator buddy, the first B is for BIG :)

gamtgguy: (October 23, 2009 10:13am)

If lenders will not release an appraisal after a BORROWER has paid for it, stating that the appraisal is their "property", then the lenders should be forced to pay for the appraisal, not the borrower.

Rob in AZ: (October 23, 2009 10:09am)

Greetings to our Appraiser brethren! To reiterate the point of **important** the majority of us in the business are aware that you folks are professionals in most cases. Just like most realtors and most LOs. I would LOVE to see HVCC go away. Not because of values. Not because of inconvenience (although that is a big problem). Because who the heck knows what the real value is when it comes from a bad source like that? In 13 years as an LO I can count on one hand the number of times I needed a Field Review (exception: No Doc loans required Field Reviews in all cases). I never ONCE had a value reduction as a result (including the No Docs). Why? I surround myself with Professionals. It is my job to look out for the interest of my Client--the Buyer. Referring him/her to a Professional for Appraisal, Title, or RE Agent is part of that deal.

real appraiser: (October 23, 2009 10:04am)

Anonymous, and by the way. the HVCC was to start "the Institute" funded by fnne/freddie to the tune of millions a year. However 17 months later just a web page with no office, no phone #'s, no employess. I think this was all set up with the intent to fall apart. Cuomo would be out of office by the experiation of HVCC (and GOV of NY) and the 18 months that passed would have lined someones pockets close to him. This should be investigated as said by so many, but no body cares.

real appraiser: (October 23, 2009 9:59am)

Anonymous; Just because HVCC allows portability. It cannot force it. Lenders have never wanted it portable, because if they can not have it, no one else can. They know the law states the person/company that orders the appraisal, owns it, not even the person who pays for it(homeowner) owns it. With this, they can not go after the appraiser or even requests added info or changes. This is why the lenders want it in their name

DAG: (October 23, 2009 9:52am)

Great news! Everyone needs to email, call, etc their reps and senators. We need to keep the focus on the cost to the consumers. I think the true cost to the consumer of HVCC is enormous. I've not had one single accurate appraisal since June. And worse than that it is taking 3 weeks to get an appraisal and an add'l week for the lazy appraiser to even respond to questions, usually with the same stupid appraisal we already have. I cannot believe my borrowers' appraisals are coming from someone who does not even have a phone number in the book, let alone a web page! We have been saddled with sloppy, underqualified appraisers who have been exercising their "power" over the process. The only way out is to keep our powers that be in Washington informed! I take customer service seriously and I remind my lenders that they are using appraisers and AMC's who do not deserve their business.

Anonymous: (October 23, 2009 9:48am)

HVCC violation - how do we file a HVCC complaint against a Lender(Bank)?? If if get an HVCC compliant appraisal, that appraisal is portable - per HVCC guidelines. Why are Banks not accepting transfers? Per the code, transfers are acceptable and since the Bank is not accepting a transfer, are they not in violation of HVCC and should they not be penalized??

**IMPORTANT**: (October 23, 2009 9:46am)

MARK V - carefull of Quantrix/Chase if you want your wife to keep her license. Look at the statistics for complaints turned into the licensing board from this company. Although most complaints are fraudulent, once the licensing board gets ahold of an appraisal they are bound to find an error that was not mentioned by Chase. It's like appraisal roulette. I know an appraiser who was turned in 3 times in 1 month from this company. After a panel review from the licensing board, they found the report to be accurate, however this took time and stress levels to be extremely high.

BC: (October 23, 2009 9:42am)

Dude...Brian...you gotta bust out the clippers and shave the head again. The hair is a little out of control Bro.

real appraiser: (October 23, 2009 9:42am)

Clulessdad: you are right, each bank has a ton of rules for each appraiser also, some that violate HVCC, they limit us in how we choose are comps. This would force the value down, if you do not follow the list of rules, do not get paid(which is illegal). as for which party is resposible. Cuomo is a king for the democrats and is best friends with McCain, (look it up). Both parties are big business and are led through the nose by lobbyists.A real third part alternative with real change is needed to keep the other two in check. Both parties have us fighting each other, than they do whatever they want in self interest. Coumo is the perfect example. Did he create HVCC to help his former hud friends, his former AMC that he was CEO of, or get his name in the headlines as he does to run "and win" for Gov of NY, with eyes on the presidency. Either way all self serving. Real good points on the blog today by all expcept "bashing"

Anonymous: (October 23, 2009 9:39am)

by the way - Cuomo can do what he wants for the State of New York. If he starts again with federal guidelines, then someone needs to shut him down. He has no right to do anything outside of the State of New York.

Mark V: (October 23, 2009 9:36am)

Fred from Cali - my wife is an aprpaiser and has been in the business for 25 years. Her income has dropped because she has to accept what Chase says (122.68 per order) or she will not get any more orders. What happened to the other $250? No wonder the banks/AMS are turning record profits - Chase ownes Quantrix, an AMC. How did this follow AMC rules? I have been on top of all of the HVCC crap and I feel that I'm the only one complaining. The AMC and how it is paid and billed is a violation of RESPA (markups for services not performed). Your Appraisal Institute certaintly did not help you or any of us. If I were you, I would join NAMB.

Fred from Cali.: (October 23, 2009 9:30am)

Thank you guys so much for finally having the appraisers back instead of the "big" buys. Eveyone complains about the price of appraisals but no one mentions the thousands of dollars the brokers make. Not that they don't deserve it but don't we(appraisers)? Please don't give up!! While I do take AMC work, I never gave into pressure from a lender to "hit the number" and I never will. All those lenders who stopped sending me work because I would not help them close a loan were the first to go when the crisis hit. I, and evey other ethical appraiser, never needed the HVCC. My mentor made sure I was ethical when he took me on and showed me that short cuts and lying will shorten your career. Keep up the good work guys!!

AMCs create appaiser DEPENDENCE: (October 23, 2009 9:30am)

Will Cuomo resume lawsuits against the GSE's when the HVCC goes away? Or maybe he can write an agreement that will forbid the GSEs from using AMCs... that would seriously raise the quality of appraisals, drive the "skippy" appraisers out of the industry, and return us to free-market competition for our services. If Cuomo can bar appraisers from openly competing to sell their services, why can't he do the same to AMCs? Aren't AMCs what initiated the whole HVCC debacle?

Coloradomortgageratesguy: (October 23, 2009 9:28am)

Wow, that is good news to hear that our voices are finally being heard. Still have about 90-120 days before it takes effect tho! Thanks! <A href="http://www.coloradomortgageratesguy.com">Colorado mortgage rates</A>

Mtg Guy: (October 23, 2009 9:27am)

And sorry for the disjointed rant, but it turns my stomach to witness all of the corruption and grandstanding that has been happening.

Mtg Guy: (October 23, 2009 9:25am)

Mark V and Park City Mtg Guy. I complain about parity and unfair competative advantage through regulation not innovation. But really it's a moot point and you are both correct. How do billions of dollars of tax payer money get spent on "These Banks are too big to fail" and "We need to get the financing back into the hands of the people"? When in actuallity the money is spent on JP buying WAMU, Wells buying Wachovia, BAC buying CWBC and no accountability - we all know lending to the consumer didn't improve it got worse for all "A-paper" excluding of course low credit/income government sponsored first time programs. How does a government loan increase equity to the Banks? I would have to book a corresponding liability to an event such as this. Answer it didn't, FASB's mark to market reversal did. Cuomo creating an unneccesary cost increase to all consumers with HVCC. etc. etc. Any one else see the dog and pony show? P.S. Is 10 days acceptable? With HVCC and HERA?

Desperate Home Appraiser (DHA): (October 23, 2009 9:23am)

Finally some good news about getting rid of HVCC.I hope HVCC dies ASAP, because it's killing all of the honest,hardworking,unbiased appraisers.

SDLoanBroker: (October 23, 2009 9:22am)

Who would ammend their taxes before they closed escrow? I have never heard of this. Talk about putting the horse before the cart!

TRUE APPRAISER: (October 23, 2009 9:09am)

This is to "who is bashing now." Why are you calling appraisers pricks? Maybe the appraisers that work for AMC's and agree with HVCC. But I do not nor have worked for any ama's. What are you related to Cuomo? Or better yet, you probably own an AMC.

washingtonmortgageguy: (October 23, 2009 9:07am)

Way to got Frank and Brian. You do alot for the mortgage community and getting this HVCC "problem" to this point in congress is great. Keep on rollin. cm <A href="http://www.washingtonbrokermortgageloansolutions.com">washington state mortgage brokers,washington state lenders,washington state interest rates </A>

**IMPORTANT**: (October 23, 2009 9:04am)

Apraisers! Beware of reading comments from people like "WHO IS BASHING NOW?" Despite using several nick names, They are actually just AMC employees just trying to shake you up. You can spot these frauds by there use of foul language. Everything about them is foul, so this makes sense. This is there only way to get us to say somthing we didn't mean so they can gather ammunition for their own battle with Washington on how they are victims, and being put out of buisness.

Mark V: (October 23, 2009 8:58am)

Mtg Guy - any reason why the Banks are allowed to lie? Oh that's right, they have contributed to the congressman to do their bidding. Estimate is available through has to be a minimum of 10 days for the costs. The interest rate - will I'm putting 5 minutes. I have already spoken to several title companies to get package pricing because we are held to their fee numbers as well. If I'm being held to a tolerance, them I'm picking the title company so I know the fees. Realtors are not going to like that at all.

**IMPORRTANT**: (October 23, 2009 8:55am)

That's right, NAMB has supported the appraiser through this dilema, not the appraisal institute, not your local licensing board, not the government, but NAMB. As an appraiser I am more likely to join NAMB and rip up my Appraisal Institute renewal with it's threats and pressure to renew. Appraisal Institute is out to protect the industry as they see fit (profit), and their own butts, not the actual appraiser. - JOE COLORADO, I HOPE YOU GOT THE MESSAGE ABOUT AI READY YESTERDAY, IF NOT LOOK AT YESTERDAY'S COMMENTS. AI (APPRAISAL INSTITUTE)READY REPORTS ARE A HUGE LIABILITY ACCORDDING TO FREA, A HUGE E&O PROVIDER.

Mtg Guy: (October 23, 2009 8:53am)

In short it's a mess and a good broker has to get all "salesy" to shed light on the situation whereas the Banks just deny there is any arbitrage in the deal.

Who is bashing now?: (October 23, 2009 8:53am)

Well done Brian and Frank...Are you appraisers happy now you shower of pricks? keep your bashing outside of this blog and just maybe you guys might start to make a good living again.

Mtg Guy: (October 23, 2009 8:49am)

Mark V I believe we are at a competetive disadvantage simply because there are two different versions of the GFE, ours shows YSP and then credits it back and the other doesn't address the concept at all. How about the "estimate available through" in this volotile market should I put in ten minutes? Vs. the Bank that changes rates daily or weekly? This should benefit a good broker in most cases, but it is still confusing to the borrower. Cash to close, two different entities governing the GFE vs. HUD1 etc. etc.

MortgageBrokerGal: (October 23, 2009 8:40am)

Wow! Home sales up 9.4% in September. Wonder if that's due to fraud in the FTHB program!

Mark V: (October 23, 2009 8:38am)

Mtg Guy - with the new GFE are we (Brokers) now put at a competitive disadvantage? We have to charge more to make the same amount so the client will be driven to Banks(creation of the monopoly, unfair business, restraint of trade etc..) Also where does the new GFE tell the borrowers how much they need to bring to closing??

ALApprazer: (October 23, 2009 8:29am)

Great work TBWS. Lots of effort on your part and a lot of undeserved abuse at times. Clueless - You are probably right, some lenders may still follow an HVCC type of model. But the the point is some won't and that allows choice which allows for competition which is better for the consumer. My bet is on the lenders that don't follow a HVCC type model. Great work Frank and Brian. Thanks

Mtg Guy: (October 23, 2009 8:26am)

This is great news! The next step is to revisit the new HUD/GFE specifically the YSP. I'm a mortgage broker and I'm fine with limiting YSP (I think section 32 already addresses this) what I really want to see is parity with Banks. ALL originators need to either need to disclose or not disclose "back end" charges. I don't understand how Banks have a legitimate argument for not disclosing. Go to Fannie's site and you can view the weekly yield pricing - all you need to know is how to subtract and you should be able to ID YSP, SRP etc. Any thoughts on whether or not a level playing field would benefiet the consumer?

CGS0174: (October 23, 2009 8:25am)

Mark V, you hit the nail on the head.

Evil Genius: (October 23, 2009 8:23am)

Clueless, I get it. I spent 10 years as a wholesale rep and have 25 in the biz. I was talking basic guides. They all have their nuances. I've worked for Portfolio lenders that also offered saleable (GSE) product. The new lender I'm talking about for instance offers 80% to $500K as conforming (no hits) and alot of other products we need. They will be wholesale only. I know Provident and they are basically cherry pickers. The other group Stearms I don't know, but it sounds like I need to find them. Also US Bank, being a bank is stepping out of the box, that's good to know. Thanks.

Anonymous: (October 23, 2009 8:21am)

Clueless, I get it. I spent 10 years as a wholesale rep and have 25 in the biz. I was talking basic guides. They all have their nuances. I've worked for Portfolio lenders that also offered saleable (GSE) product. The new lender I'm talking about for instance offers 80% to $500K as conforming (no hits) and alot of other products we need. They will be wholesale only. I know Provident and they are basically cherry pickers. The other group Stearms I don't know, but it sounds like I need to find them. Also US Bank, being a bank is stepping out of the box, that's good to know. Thanks.

Own Too Much Property: (October 23, 2009 8:19am)

Frankie (Not Frank Garay) has no clue. He assumes I'm a slumlord. The two homes I tried to refi are my primary and one of my vacation homes. I do have rentals and thankfully those properties have been paid off. They are in such demand that we don't even have to adverize when one becomes available. A sign in the front yard is good enough. We have people that want us to let them know when one becomes available. We bought some 1920's craftsman homes and completely modernized them while leaving the old charm. They are great rentals. I actually prospered during the so called horrible Bush years. I borrowed money leveraged it in real estate, sold off quite a bit in early 07 before the crash. I did very well, all on borrowed money. The Bush years were very good to me.

Pappa Frank: (October 23, 2009 8:16am)

Thanks to ThinkBigWorkSmall and the thousands upon thousands who raised their voice, signed the petition against HVCC...we are almost there! Frank and Brian...you guys ROCK! I appreciate your broadcast...it's informative and we all need a good laugh now and then...keep up the GREAT work!

Mark V: (October 23, 2009 8:13am)

Not sure how a oawsuit between Fannie/Freddie and the State of NY became federal regulation. This was a settlement between the State of NY and Fannie/Freddie. I thought this was a violation of the Consitiution - no single state can make national rulings?? All the HVCC did was allow the Banks to set up and own AMC's and strip money from the appraiser to add to their own pockets. I still see this as a RESPA violation - the appraisal fee is not the fee paid to the appraiser, the AMC has marked up the report cost and pocketed the spread.

Clulessdad: (October 23, 2009 8:11am)

Chuck-the name is Andrew Cuomo. But I still want to know what he had on FNMA and Freddie that made them sign so fast. And where is the money from the GSE's for the Compliance Line?

Clulessdad: (October 23, 2009 8:09am)

BTW- new programs are beginning to show up recently. They are more portfolio programs that don't have to follow GSE guides. US Bank is an example-they manually uw all loans with NO HVCC. NO AUS. 50% max dti. Stearns just came out with a portfolio program. ( This company's owner Glen Stearns came out about a year ago as a wholesale lender only wholesale. He went on CNBC and promoted the HVCC as a Good thing. I only use them if I have to use them. www.stearns.com)

Chuck E. Jesus: (October 23, 2009 8:05am)

It's an absolute crime that the HVCC was ever enacted in the first place. Whatever loop hole this crap managed to slide through needs to be closed immediately. Why we had to turn the whole lending industry upside down before figuring out this was nothing more than a profit grab by AMC's is beyond me.

JUSTTHINKINGFUNNY: (October 23, 2009 8:04am)

THATDAMNEDJINGLE LOL, That is to personal to post. Think BIG work Small.

Clulessdad: (October 23, 2009 8:03am)

Evil-In theory they all follow the GSE and FHA guidelines. But each lender has a list of more conservative "overlays" that prohibits their company from funding. Stearns for example, has a requirement that you cannot have purchased another home within 90 days. Provident won't do any flips for a year. Some won't grossup non-taxable income. Some use an AVM, as their PRIMARY source of collateral value. Almost all lenders have a 620 FICO minimum for FHA, even though the FHA guides state no FICO scores. Lenders won't lend on manu housing even though FNMA and FHA allow it. It goes on and on. So yes, they all follow the rules, but some follow them much tighter than others. So if HVCC is repealed, it doesn't mean that the lenders will go back to anything the way it was. They have the choice, and if they have ownership in an AMC, the odds go up that they will not abolish it.

Noel: (October 23, 2009 7:58am)

No independent broker should join the chorus of whiners about "corporate greed" et al. Unless of course, the whiner would prefer to invest his/her money HOPING to lose money. Strange how everyone else who makes money is greedy; but, if we make money on our investments, we're wise. If you don't like Wells, don't buy their stock and don't put your money in their bank . . . maybe put it in a bank that doesn't make profits and pays their executives about $30,000/year.

ThatDamnedJingle: (October 23, 2009 7:58am)

I will have to give you this... the new hillbilly TBWS jingle does stick in your head... I was singing it this morning in the shower..and my wife was like WTF? lol

Common Sense: (October 23, 2009 7:57am)

Old Dog--I thought we were all in this to make money? Just to set the record straight , I work for a community bank with about 100 employees. there are thousands of banks like ours out there and we feel your pain. But the blame falls squarely on the government and few bigs banks who have buddied up with the government.

Common Sense: (October 23, 2009 7:53am)

Mark V, I think that's what I said, maybe you should read the whole post instead of just getting mad at the first couple of lines.

Tired of leftists pushing socialization: (October 23, 2009 7:51am)

Hey Old Dog: No, the current Administration, I will not mention his name, may not be responsible for HVCC, but let's not be nieve here.......Andrew Coumo is a Leftist. Can't argue that one. I just can't figure out why leftists love anything that has to do with Socialization or "leveling the playing field". Marxism!

Mark Green (Former NAMB Basher): (October 23, 2009 7:51am)

There ya go Jim! Awesome work by NAMB and TBWS not only moving the HVCC issue forward but also articulating progress to the industry. We're not nearly out of the woods yet, but this is proof positive that NAMB is out there busting their hump for mortgage professionals - and more importantly - CONSUMERS. Today's Daily Show really lifted my spirits. I echo everyone here w/ a big shout out to Frank and Brian for their hard work. Oh, and BullGator - Go Gators!!!!

Mark v: (October 23, 2009 7:50am)

Common Sense - really do not like the reference that nobody cares about mortgage brokers. I'm a mortgage broker. I'm the only one who has to inform the client my income. Why doesn't everyon have to follow the same rule?? The Mortgaeg Broker did not create this mess. WE DID NOT CREATE THE LOAN PROGRAMS. I can count on one hand the number of ARMS, pay option ARMS and SUB Prime loans we did. Common sense - get a common grip.

JUSTTHINKINGFUNNY: (October 23, 2009 7:48am)

We all know that it was actually the government that actually started this problem. ANybody remember Barney Frank. If the Gov. did not push the issue and force Fannie/freddie to take riskier loans. then this would not have happened. the free market was working fine. The gov. gave everyone the ability to get even more greedy. So more gov. reg. NO.

Evil Genius: (October 23, 2009 7:47am)

Clueless, earlier you mentioned that every lender has different guidelines. That's just not true. Since banks and Fannie have accepted money from the Gov, they are all in one big orgy with the same basic Fannie guides. This industry needs a new entity that will offer their own Portfolio style guides that make sense and expand the tiny GSE box. There's hope on the horizon. I know of a couple of old mainstreamers that are trying to re-invent themselves, but they are still using the old thought process and the existing mentality to introduce slightly different product. Also, however, I know of 1 particular group that will completely revolutionize lending. The big key is to stay away from the Gov. Look for something in the first quarter of the next year. Completely fresh. I mentioned some of their prospective programs here the other day.

Common Sense: (October 23, 2009 7:45am)

Park City--Okay, everyone, Park City Mortgage Guy likes the HVCC. The truth is, there is already enough regulation. It was illegal to commit fraud, illegal to bait and switch, illegal to put pressure on an appraiser, and there were numerous agencies charged with making sure that banks were making good loan decisions. What have all of these regulations gotten us? More regulations. The only thing the government does efficiently is churning out legislation. If the banks that made all of the poor decisions were just allowed to fail, other, smarter bankers would fill in the gaps. We don't need the likes of Chris Dodd getting sweet heart deals from Countrywide in exchange for looking the other way and then turning around and blaming the mortgage brokers who were just selling Countrywide's products.

Frank @ TBWS: (October 23, 2009 7:45am)

I'm hanging in Live Chat for a while if anyone want's to shoot the breeze..

Old Dog: (October 23, 2009 7:41am)

Another thing...Common Sence. We wouldn't all be in this situation now, if banks weren't so greedy and could regulate themselves. Just like a child who doesn't do his chores, the parent has to step in and kick his butt. Don't you know that big banks like Wells...just loves this, they can make some more money on the backs of the appraisers.

JUSTTHINKINGFUNNY: (October 23, 2009 7:38am)

Why don't the Seller's or refier's take the appraisers to court and sew for incompetency. Sounds like they would have a case.

Park City Mortgage Guy: (October 23, 2009 7:36am)

To COMMON SENSE - I'm sorry, but your position does not make common sense. Every intelligent observer understands that it was the LACK OF GOVERNMENT REGULATION on Wall Street, Big Banks, Insurance Companies, Rating Agencies and yes, even mortgage brokers that led to the meltdown we are all trying to live through. The "free market" is a myth. EVERY industry, sport, and other human endeavor requires rules that try to maintain a somewhat level playing field for all. Without rules, regulations and laws the rich and powerful continue to take more and more advantage of the "other 98%" and we end up with what we are now experiencing - unfair advantages to those who can afford to buy lobbyinsts and elected officials.

Changes: (October 23, 2009 7:35am)

Common Sense - "Your Petition?"... is you signed it, isn't it "Our Petition?". Thanks for the suggestion, but still, I wasn't kidding, if you have a ideas for us to help bring about change, we're all open to hearing them.

Common Sense: (October 23, 2009 7:35am)

This is a huge issue, but why are you blaming the banks? Blame your local congressman. The best way to fight this is not to focus on the ill effects this is having on Mortgage brokers (nobody really cares), but to focus on the ill effects it has on the consumer and the way it retards the housing market and stalls the recovery. You are just a bunch of whiney babies who are incapable of seeing the big picture. Fight big government wherever it rears its ugly head. Go to a tea party, support conservative candidates, and don't be afraid to make yourself heard!

Old Dog: (October 23, 2009 7:34am)

To Common Sense....HVCC was created long before this current administration came into office..Check out a little history before laying blame.

Frank Garay: (October 23, 2009 7:32am)

Own too much property... just to be clear "Frankie" is not me - Frank Garay.

Jen: (October 23, 2009 7:27am)

All of this doesn't matter because the banks are using automated appraisals which are grossly innacurate, and either forcing the appraisers to use the banks comps or just slashing the value altogether completely disregarding the accurate appraisal done by a real life appraiser. Something needs to be done about the banks and their criminal activity!

James the Apprasier: (October 23, 2009 7:25am)

Cool, we have lost 1/2 of the appraisers in my county over this crap. On the FHA side we are down to less than 15 for the county that are of the right levels and FHA approved. If nothing else, those of us GOOD appraisers that make it through HVCC will have an open plate and we should be able to kick fees up to between $400 and $550, that is what the AMCs were charging

Common Sense: (October 23, 2009 7:24am)

Changes--We bankers signed your petition. We hate HVCC, too you know. The petition to revoke HVCC went through the banking industry like wildfire. We all know the costs that onerous regulations have on the industry. The problem is we tend to focus on the regulations that affect us and to heck with everyone else. We need to all be fighting all regulation, whether it be of the mortgage industry, the auto industry, the medical industry, or what have you. This current administration wants it's fingers in every aspect of our lives and ultimately that means less freedom for all of us. Try picking up Milton Friedman's "Free To Choose". It's a very readable book that willhelp everyone understand why we need to fight the ever expanding government.

Chris- NY: (October 23, 2009 7:22am)

Wells Fargo switched over to using one of 4 AMC's last december- 5 months prior to HVCC implementation! one of the 4 AMC is owned by Wells! Even with no HVCC banks will still force brokers to use their AMC list

Frankie: (October 23, 2009 7:21am)

Own Too Much Property - Why should you be a slum lord and still get a loan anyway. The HVCC appraiser and the AMC were happy with the values, you can't say they inflated the values to help every one in the deal out

Old Timer: (October 23, 2009 7:14am)

wow... you mean I may be able to SPEAK with my established Mtg clients that I have been doing business with for 10+ years?? (that is, until HVCC decided I was incapable of making the "right" choice and forbid me to do business with them any more).....**holding my breath**

James the Appraiser: (October 23, 2009 7:12am)

WOOOO - I will some day be back working with my brokers and LO that I spent years providing great reports for and getting paid full fees and even CODs. Man, this is moving in the right direction for the first time in a long time.

Mark V: (October 23, 2009 7:07am)

Why is there seperation between Lenders(banks) and brokers? It's because the Banks have the money for the Lobbist. We are the small guy and are being stepped on and we have no voice. I write weekly to my US Congressman - and it falls on deaf ears because I'm not giving them money for re-election.

Own Too Much Property: (October 23, 2009 7:06am)

I have tried to refi two properties of mine and HVCC has killed them both. Recently a property that I bought for $80,000 in 06 and put $90,000 in renovations into was appraised at $50,000. Zillow has it at $160,000. My primary home had an HVCC appraisal a month after I had a conventional appraisal. The first came in at $650,000, the HVCC appraisal was $500,000. Zillow has it at $660,000. HVCC uses only the trashed foreclosures as comps. HVCC is killing the mortgage and real estate business. I just hope this thing is fixed before my ARMs come due in a few years.

Changes: (October 23, 2009 7:02am)

Maybe you're right Common Sense. What are you doing for us? Tell us what we can do to help you. We want all this to go away as well. We're ready to join your cause. Where do we go? What do we do. Lead on Common Sense, we're ready to follow.

Common Sense: (October 23, 2009 6:56am)

Okay, you're not nuts, YOU'RE STUPID. You think new regulations on banks will not effect mortgage brokers? Who ultimately buys the loans? You guys are against onerous regulation,but only if you percieve it as effecting you directly. The only way we as an industry are going to fight off the governemnt is if we all stick together and recognise that ALL GOVERNMENT REGULATION IS BAD for the industry.

Changes: (October 23, 2009 6:54am)

I don't think lenders like HVCC anymore than anyone else. And guess what. As soon as one lender drops it when all this passes, the others will as well if they want to compete. Cause I sure know that I won't send a deal to a lender that requires HVCC if I don't have to!

Ron in Brigantine: (October 23, 2009 6:51am)

Great News..sort of! FHA has passed several Reverse Mortgage guidelines that the lenders have not acted on. Can we assume now that the lenders have HVCC in place they will not continue this policy after the laws are changed? As we all know what is passed and what we can use are sometimes complete separate realities.

EmeryTroy: (October 23, 2009 6:51am)

Here is a NAMB link that tracks current legislation. HR 3126 & HR 3044 are both referenced http://www.capwiz.com/namb/issues/bills/

CM: (October 23, 2009 6:51am)

Great job as usual guys. Thanks for all of your help in getting the HVCC stopped.

Changes: (October 23, 2009 6:47am)

Actually there are other amendments that keep most pf the pressure within 3126 focused on the big banks dirty deeds at this point. Maybe NAMB can shed some light on what they know in another interview with the boys. I don't think 3126 in it's current form is going to affect the originators at the street level. So this really is a good thing.

Common Sense: (October 23, 2009 6:44am)

Y'all are nuts! You are all excited about an amendment to HR 3126. Do you realise what HR 3126 is? It is the "Consumer Financial Protection Act". It creates a whole new government agency to regulate financial institutions, as if there aren't enough now. This is going to make HVCC look like and annoying city ordinance. You have got to pay more attention. We are moving from being a heavily regulated industry to being government run industry.

GOD: (October 23, 2009 6:42am)

Gosh Frank & Brian I'd really, really love to join NAMB again, but they won't let me. No, it's not my felony convictions, it's my convictions that the I refuse to join the local level and help fund their misadventures. If we could join at the national level without having to join and fund the local levels I'd bet NAMB would have 3-4 times the membership. Pass it on!

The Truth: (October 23, 2009 6:40am)

Lend America may have been granted a denial of the injunction because they couldnt defend themselves in 2 days. But they are not out of the woods yet, they have 26 more days until the mtg review board and hud and fha wants them out. All the posts and press releases are just pissing hud and fha off more.

Loan Goddess: (October 23, 2009 6:35am)

WAY TO GO on HVCC! Thanks for the reporting on the 1st time Home Buyer tax credit.......the 4 year old is either really, really EVIL or maybe, (wait for it).... someone stole his identity by using his Social Security number....something that happens a whole lot more often than you might think. Two points that I am trying to make: plan on being audited if you use the tax credit this year AND freeze the credit profiles of your minor children!

Mark V: (October 23, 2009 6:35am)

Dealing with AMC's, they hold all the cards. They can take as long as they want to return a crappy report and there is nothing we can do. I don't like being held hostage. They take a week to schedule an appointment and then another week to complete the report. That's 2 weeks for an appraisal! Using my list of Licensed/Registered appraisers I got the report back in a week. Through my external third party compliance audits I have never had any issues with appraisals. I have done this for 17 years. Get rid of the HVCC and also stop the removal of the YSP and oh by the way the new GFE is crap!

mortgage-guy: (October 23, 2009 6:34am)

get rid of it!!!!!!!!! Lets use the appraiser that wants to earn the business by working hard.....

Broker Lady SC: (October 23, 2009 6:33am)

Hurray for TBWS! Hurray for NAMB! They're like the dynamic duo! Great job to everyone.. I sure needed some good news and on a Friday as well? I believe there is a cocktail in my future. Heck, I might take the day off and start now! Anyone care to join me??

SimpleSolution: (October 23, 2009 6:31am)

Wohoo!!! Thanks for your efforts Frank and Brian!!

Colorado Mike: (October 23, 2009 6:24am)

And thanks TBWS as well!

FL Broker: (October 23, 2009 6:23am)

GO NAMB! Man they really stepped up for us Mortgage Brokers! Seem like you don't hear much from them then BAM! Out of nowhere they help draft an amendment that get's through! HA! Where was NAR on this??? GO NAMB! GO JIM PAIR! Good job to all! Let's hope it continues and we see this thing get killed!

Colorado Mike: (October 23, 2009 6:23am)

Thanks NAMB for your help in dumping HVCC. As an appraiser since 1974, this is the single biggest negative problem to my business that I have encountered, not to mention how much it has hurt consumers. Where the hell is the appraisal industry in this fight. As an appraiser I incorrectly assumed that the AI would jump into this fight to be our voice... Wow, was I wrong about that.

Delaware Broker: (October 23, 2009 6:19am)

qbsack and clulessdad... that is what i am afraid of... especially the big lenders. I bet they won't let it go. Man, I just want better service. The AMCs are just terrible... no service, no motivation to help us at all. I hope something changes for the better even if the investors keep some form of internal hvcc/

qbsack: (October 23, 2009 6:13am)

I think the damage is already done. The use of AMC's will continue. Many banks own the AMC's and are making money with them, without regulation. Lenders will still require loans to go through the AMC process.

bobbi: (October 23, 2009 6:12am)

Thanks guys for all you do. I can't tell you how happy this news is. ZStill not out of the woods but let us all hope it will be a little easier in these at best difficult times. These last 3 years ( not 1 year) has been a bitch

CORRUPTION AT ITS BEST: (October 23, 2009 6:08am)

INVESTIGATE CUOMO!

Clulessdad: (October 23, 2009 6:08am)

delaware-it seems like every lender is getting hammered by the GSE's and HUD. I wouldn't be surprised either by some lenders continuing with the HVCC, after all, every lender has different uw guidelines.

Atlanta LO: (October 23, 2009 6:00am)

To :Bbullgator, Larrywms, takebackdc: Roll Tide Roll ! You guys are right about one thing – It is The SEC and then others! May HVCC go the way of the Dodo bird!

ElvisMiami: (October 23, 2009 5:58am)

How about adding a weblink to the HR 3126 with the HR 3044 amendments so we can share the good news with the real estate industry.

Delaware Broker: (October 23, 2009 5:49am)

A thought; some lending investors seem to really like hvcc. My guess is that some will institute their own internal guides still requiring us to use their appraisal ordering portal. Any thoughts?

KentInCS: (October 23, 2009 5:28am)

Senators just approved rape without consequence: http://bbs.clutchfans.net/showthread.php?t=175933 we have no hope

Snets: (October 23, 2009 5:26am)

You can't believe that if HVCC goes away - they will just return to the old status quo. There will be some alternate method - I just can't see them opening it back to the way it used to be.

takebackdc: (October 23, 2009 5:16am)

Great potential news guys - thanks. Go Vols! Go SEC!!!!!

Ray: (October 23, 2009 5:15am)

Great job guys. You contributed greatly to getting the effort to postpone or kill HVCC this far. Thanks.

Dweebster: (October 23, 2009 5:07am)

Isn't HVCC set to expire in the Spring of 2010 anyway?

Larrywms: (October 23, 2009 4:55am)

Good morning fellow Gator fan. Go Gators. You are right, nothing better to cling to than SEC college football.

LI Appraiser: (October 23, 2009 4:54am)

This is all great NEWS with HVCC, I was on the phone a couple of days ago with my Congressman who has talked to Barney Frank and was pretty sure this was going to happen. As far as Lend America goes, I stopped appraising for these guys some 9 yeasr ago for a GOOD reason. The goverment is more than likely right on this one.

Bbullgator: (October 23, 2009 4:33am)

Good Morning from the SWAMP. Go Gators Hey, us mortgage brokers have to cling to something, what better than college football!

Big Mac: (October 23, 2009 4:32am)

HOO HAH BOYS!!!!! You changed our world. Good job. Thanks fom all of us!