what is the latest with HVCC and the proposed ban!?! I cant keep working for $170 per appraisal. This is horse$#*T! Please let me know what is going on with HVCC. Thanks!!! Love you guys.

New GFE and Fannie Mae and their costs...I guess the borrower will now truly see what Fannie Mae's charges are for their loans (LLP adjustmnents)..a 660 fico borrower buying a condo at 80% will pay almost 4% in fees..smells like subprime lending to me..in fact soem hard money shops dont even charge 4% these days. of course us brokers in the past would take it in the shorts for these clients and do these loans at par and hope to make a point. Now will we just let the borrower pay 4% so we can make 1% and leave the rate as is becuase we cannot make rebate anymore. Pricing is going to become very messy for anyone with less than a 720 score. Fannie Mae the old porn star has more credibility than this pathetic company we must rely on!

FHA 5% Down Payment? NO - NO - No. The market is tough enough without more government intervention.

This link was just forwarded to me: http://www.fraudproblem.com/updates/

Part 2 of 2 "IF AN ESTIMATED MARKET VALUE IS INDICATED ON THIS ORDER IT IS BEING PROVIDED SOLELY TO ASSIST IN DETERMINING THE RELATIVE COMPLEXITY OF THE VALUATION AND IT IS NOT A TARGET OR EXPECTED VALUE." A supplier who indicates an estimated value or loan amount on an appraisal request form is knowingly attempting to compensate, instruct, induce, coerce, or intimidate a person licensed or certified under R.C. 4763 for the purpose of corrupting or improperly influencing the independent judgment of the person with respect to the value of the dwelling offered as security for repayment of a mortgage loan in violation of R.C. 1345.031(B)(10). Defendant ordered to pay civil penalty of $100,000 and $15,000 in attorney fees and investigative costs.

Part 1 or 2 Proof that HVCC isn't really working. I'm sure this will not be the frist case to surface: November 2009 AMC - Fiserv Solutions, Inc., The appraisal management company (AMC), Fiserv Solutions, Inc., was ordered to pay a civil penalty of $115,000 by the court for their attempt to influence the information contained within appraisal reports ordered through their service. AMC's operate as a "middle man" between lenders and appraisers. Typically and AMC solicits appraisal orders from lenders and then distributes the orders to a nationwide network of appraisers. In this capacity the AMC takes a portion of the appraisal fee to pay for their "management" of the appraisers. According to the Findings of Fact, and against the prohibition of providing a "value estimate" to the appraiser, Fiserv included the following statement in their appraisal orders: PART 2 CONTAINS THE REST OF THE ARTICAL.

AE is me: Nope was early. The webinar was cancelled.I'm sure Frank and Brian will set it up again.

Sorry guys we had a webinar glitch of sorts. You will be re-routed to the next one. Watch your email. I think it's next week. So sorry for the issue. We'll get you in there!!! Damn computers...

Wog I think you got there too late.

"MortgageAngel: (December 10, 2009 9:28am) Anonymous - Where did Robert Pegg come from? What's his background?" Found this - http://bit.ly/8J62DT scroll down.

Hmmm I went to the webinar..but no go. Huh? Yeah! i used the link provided and waited but the organizer didn't show. What's up?

(Urgent) Anybody out there whether you are a broker or an appraiser who has had issues with Provident Funding including having registered loans not being underwritten because the loan was not locked, or approved files being removed because they were not locked or Provident played a part in the value of your appraisal. Contact us today [email protected]. Let you other people know about us as well, clients welcome

Colorado, You obviously have no clue.

Now you have done. Your next. With in the year originators will have to use AMC's to get work. We appraisers like to spread the pain.

Why are all these political postings on here. I could care less about ideology. I just want to know how to stay in business. It does not matter who is in office right now. Presently there is nothing that can be done about that. Quit complaining about the past and present. Lets focus on the future and how to stay profitable regardless of who is running things. Keep the blog focused on the industry not politics.

It is a joke that bank employee originators don't need to be licensed. A friend with years of wholesale experience is now working for one of the big banks (begins with a B, ends with an A)in the origination call center and she told me that it is awful. She said most of the originators know NOTHING about mortgages and would be incapable of completing a "handwritten" 1003 in the field because they just ask questions from their little computer scripts with no idea what it all means or if the info they are getting makes sense or not. So they just register? And the CA RE Brokers License that I have means nothing - I need another license? Whatever!! What is next, not allowing consumers to choose their loan originator, they have to apply and one will be randomly assigned from a nationwide database! Oops, I shouldn't have said that, what if Andrew Cuomo reads this.

Padraig & Colorada Popa. Post your rants only ONCE please. Also, try to leave the Political stuff off the board unless it directly relates to the Mortgage industry.

Padraig, you obviously are blaming Obama for a depression that killed federal tax revenues....even if he took office months after the September crash. I don't consider myself a real liberal at all. More a libertarian. But you sir or madam are rotting your brain if you are listening to FOX.

Padraig, you obviously are blaming Obama for a depression that killed federal tax revenues....even if he took office months after the September crash. I don't consider myself a real liberal at all. More a libertarian. But you sir or madam are rotting your brain if you are listening to FOX.

Padraig, you obviously are blaming Obama for a depression that killed federal tax revenues....even if he took office months after the September crash. I don't consider myself a real liberal at all. More a libertarian. But you sir or madam are rotting your brain if you are listening to FOX.

Padraig, you obviously are blaming Obama for a depression that killed federal tax revenues....even if he took office months after the September crash. I don't consider myself a real liberal at all. More a libertarian. But you sir or madam are rotting your brain if you are listening to FOX.

Colorado Papa -- 1st, you obviously do not understand that Obama already raised the debt 1.2 trillion in one year. It took Bush 8 to reach that and Obama will have us at 9 trillion by the time he is tossed. 2nd, I'll pay anything to defend the country after idiots from the left leave us vunerable. 3rd, you bring up Hannity, Rush and Oreilly like that is a bad thing. FYI, Rush signed a contract for over 150 million, Hannity and Oreilly are blowing out of the water all of the losers from MSNBC for a reason. People agree. Liberals like yourself are in the minority. Hence, Obama's poll numbers.

Colorado Papa -- 1st, you obviously do not understand that Obama already raised the debt 1.2 trillion in one year. It took Bush 8 to reach that and Obama will have us at 9 trillion by the time he is tossed. 2nd, I'll pay anything to defend the country after idiots from the left leave us vunerable. 3rd, you bring up Hannity, Rush and Oreilly like that is a bad thing. FYI, Rush signed a contract for over 150 million, Hannity and Oreilly are blowing out of the water all of the losers from MSNBC for a reason. People agree. Liberals like yourself are in the minority. Hence, Obama's poll numbers.

Mad1218: As of today, the federal deficit is over $12.1 trillion dollars. Now they want to spent over a trillion on a healthcare program that we literally cannot afford. Our country is going bankrupt, and we can't spend our way out of it or borrower our way out of it.

I don't get how Obama deserves to get blamed for the huge debt when Bush doubled it during his eight years in office. You Obama bashers listen too much to Hannity, Rush, and OReilly.

Historically the Dems set into place the spending programs and then get voted out so the Republicans are in office trying to control things and get the blame because they have to make some unpopular decisions. Do you seriously think that anyone in the history of the world has ever put into place any debt structure bigger than Obamas? Much of it won't hit the books or begin the spending cycle until just before the next elections. Is that coincidental? I think not, it's a ploy to buy votes. Neither you, your kids or your grand kids will ever be able to pay off the great Obam's several trillion dollar programs so don't even begin to try and get high and mighty!

Dear Mad1218, my reasoning is that we already had one imbecile in office that just left, and personally i think the country is now being run by a man child with no experience. Hope and change have been replaced by "dope and and the only change we will see is the change jingling in your pockets". We are all getting what we voted for period..a community orgainzier is reforming the financial systems as we know it and we are all paying for it. Akin to a college student being promoted to CEO of a bank and being told he needs to now police everyone without any knowledge of what the hell he is doing. The buck stops there period!

To "God" and "Best Idea Yet": I agree that the fed govt is spending too much money. But how do you figure that the problem is caused by Obama? The Federal Debt is approx $11tril. The debt when Obama took office was approx $10tril. Do you know what the debt was when W took office? $5tril. It took over 200 years to get the debt to $5tril and it was then doubled in 8 years under the Bush administration. And you're upset at Obama's spending? Don't get me wrong, out of control federal spending is a huge problem. I just think you really show your true colors when you frame it as a problem of Obama's making. I think you're about 9 years late to the party.

(Urgent) Anybody out there whether you are a broker or an appraiser who has had issues with Provident Funding including having registered loans not being underwritten because the loan was not locked, or approved files being removed because they were not locked or Provident played a part in the value of your appraisal. Contact us today [email protected]. Let you other people know about us as well, clients welcome

Double D, interesting comment on car dealers. I took an ap last week from a 72 year old gentleman with not stellar credit, who was sold a $40,000 vehicle ealier this year, payment - a whopping $800/month on A FIXED INCOME. Think they didn't take advantage of that dude. He thinks his $1200/month house payment is too much now. When I see a car payment like that, I always tell people they are driving a house!

BEST IDEA YET! The post of the century!!!!!

Scotsman guide must be good, since I have an article in there too. LOL

Anonymous - Where did Robert Pegg come from? What's his background?

Niche Report is owned by Robert Pegg..

Isn't the "Niche Report" owned by an AMC?

HUD eliminated grant programs like Ameridream. Now that they are the only game in town, they can tighten up. I don't have any particular problem with a 5% downpayment. Everyone will have a problem come Jan when FHA loans are in the same HVCC hell we live in today. I don't currently have FHA, but I did recently get to order an appraisal for a RHS loan and I got it in 3 business days vs the 3 weeks the AMC's are taking. For those of you who have not experienced it get ready. I wonder about the cost of HVCC, and if the YSP issue goes through, I have to wonder what the cost of all the broker and appraisers filing bankruptcy would be. Not to mention the trickle down to title companies that are still folding. Really, it is pretty simple I suppose, the banks will be the only option when our industry is gone. Perhaps that has been the intent all along. I still believe an organized march is in order!

What's so "SAFE" about unlicensed originators quoting rates? OMGosh! In California, companies operating under CFL are multiplying like rabbits.

Yes, FHA is going the way of some HVCC - most lenders have stated they will be going thru their same AMC as conventional loans. Also, some lenders have stated they are starting with FHA appraisals as of Dec 18 rather than waiting for Jan 1st.

Last week Rush Limbaugh did his own 'job summit' and one of the first people to call in was an appraiser who expects to be unemployed after 1/2010. I wrote to him and Glenn Beck about the situation. I would like to urge all of you who blog here to do the same. Maybe if they get enough comments they will talk about it. [email protected] [email protected]

I am sick to death of HUD's constant effort to put itself, and me, out of business. Why? Our already struggling housing market can't stand another blow. Asking buyers (and sellers) to more money into a transaction will only serve to further weaken an already weak industry. What are they thinking? I can't stand the thought of this industry in 2010. It's already a circus and blame abounds towards mortgage brokers who were simply the scapegoats for a greedy Wall Street pack of wolves. Not to mention greedy bankers who sought to fatten themselves and then blamed it on us. What a monumental crock of crap!

(Urgent) Anybody out therr whether you are a broker or an appraiser who has had issue with Provident Funding including having registered loans not being underwritten because the loan was not locked or Provident played a part in the value of your appraisal. Contact us today [email protected]. Let you other people know about us as well, clients welcome.

The Niche Report is a great magazine. You can see the hvcc article here, just cut this link and copy it to your web browser. www.andrewcoumo.com They are very open to subscribers views. Make sure they get Martin Andelman to write the story on you, he is an amazing writer. I am quoted in the December issue. I posted this message about 2 months ago, and over 600 of your veiwer took the time to read this article. It is about a 20 min read, but well worth it and it's very funny.

Hopeful but Worried - yes everyone is correct, Lenders will be the only one order FHA appraisals. We bad Mortgage Brokers caused all this financial mess by making up these pay option ARMS and forcing them on the Banks and the Secondary market (such BS). Banks now hold all the cards and they are untouchable (they willb e the only place to go to get a loan, they will control the interest rates as there will be no competition and they own the AMC's - anybody see the eventual problem - called monopoly)

I have a great idea! lets all vote for a community organizer with no military, or economic, or business, or any damn skills apart from being a decent speaker who will spin you the greatest yarn you will ever hear and promise you the world, and also give him an unlimited checkbook so he can spend this country into so much debt that our kids are born with $100k in debt each. By the way he now has the worst poll mumbers for a president EVER at this time in a presidency.."is it too late to vote for the crazy old white guy who will kick Osama Bin ladens ass"

Anybody out their whether you are a broker or an appraiser who has had issue with Provident Funding including having registered loans not being underwritten because the loan was not locked contact us today [email protected]. Let you other people know about us as well clients welcome.

Hopeful, you r wrong about banks not pressuring appraisers. HVCC was all about WAMU encouraging value inflation by appraisers. HVCC is a crock. Just ordered an appraisal, stated value was $850K cause that would put LTV at 80%, appraisal came in at $850K. I must have great powers since I did no comp check n have never seen the property.

Well in that case how is anyone in business after Jan 1st. I live near Chicago. There are so many appraisers on the AMC rolls that there "rotation" is one in a year. Any ideas would be helpful. I am at a loss. What a great Christmas present. Can't wait to get out on the job market with 10.2 percent unemployment and 22 percent underemployment.

Hopeful but worried: Your clients are correct. They will no longer be able to order FHA appraisals from you directly. Most lenders are going to be using their AMC's. Sucks, huh?

@ FHA Confused. FHA currently limits to 1% origination. They are removing that cap. I am guessing that is because YSP will likely be off the table and they recognize that brokers cannot make a living on 1% + junk fees.

Has anyone heard about the new FHA guidelines going into effect Jan 1st. This is the one where FHA took on some of HCVV provisions. I have clients telling me that after Jan 1st they can't order any more appraisals from me. If this is true, I cannot survive on the scraps that I get from AMCs and I have no idea how FHA appraisals are going to be ordered. Most brokers are saying the lenders are going to order the appraisals. But from who and how do you find out. Anyone else hear this and if so are you out of business after January 1st. Been in the business for 19 years and every client that I have left is saying they are closing there doors Jan 1st.

Colorada Mama, you are so right! All FHA will be left with are the most challenged borrowers. Next they will want to raise the FICA minimum score again so they won't have any customers at all!

Rob in AZ: I don't have a problem with an increase in the downpayment, nor do I have a problem with an increase in the MIP. What I do have a problem with is requiring the Upfront MIP to be paid in full at closing rather than roll it into the loan amount. Granted, the seller would be allowed to pay it, but they want to reduce the seller-paid costs from 6% to 3%. Talk about more skin in the game! Wow - that hardly makes FHA loans competetive anymore.

Appraisers - http://www.freddiemac.com/singlefamily/pdf/IVPI-HVCC.SampleComplaintForm.pdf see page 4. There have been multiple violations of the code by the AMC's. In March 2008, Freddie Mac and Fannie Mae entered into cooperation agreements with the Federal Housing Finance Agency (FHFA) and the Office of the New York State Attorney General (NYAG) agreeing to only acquire loans from mortgage originators that meet new standards designed to ensure independent and reliable appraisals. The appraiser and appraisal requirements have been documented in the Home Valuation Code of Conduct (the “Code”), which became effective on May 1, 2009. Complaints for non-compliance with the Code are ultimately to be referred to an Independent Valuation Protection Institute (“IVPI”). The IVPI has not yet been established, but an interim IVPI Complaint website is currently under development and will be operational in November 2009. My point confirmed - this is an agreement between Freddie and NY

To Hopeful the right. Thanks to NAMB. We as appraiser don't have any power.

who sets the APPROPRIATE Pay for Appraisals? FHA HVCC? Not the AMC's I hope. AMC's oever charge the client while ripping off the appraiser This is a well accepted by most appraisers. The Amc's continue to backmail appraiser into lower and lower fees. you should look into the way AMC's blackmail Appraiser into these super low fees when they don't want to give them that low. I would be glad to get a call to discuss this with you if you have time.

The Brokers are starting to understand what the appraisers have been going through for years. A big part of the licensing is to prevent preditory lending, brokers at banks do not pressure appraisers. Appraisers in CA pay enormous licensing fees every two years, are required to take classes and we have no representation to speak of. NAMB has done more for appraisers indirectly than anyone else. THANK YOU NAMB!!

While Shaun Donovan is looking one direction to raise funds for reserves he (as most of the govt is now doing) is not looking the other direction where their program will now be equivalent to FNMA/FHLMC 95% with MI except more expensive. They will cut out another half again (at least)of viable borrowers and be left with the lower credit score, higher risk customer. As it stands now, they do get many borrowers that don't have cash reserves but they do have everything else. When will all those guys learn to TOTALLY analyse what they are doing?

Socal Appraisal Gal - my wife is an appraiser and has been doing it for 25 years. I know exactly what happens on the appraisal side. I have been screaming about the HVCC since it first came out and wiht only one voice, people didn't really seem to care. It boggles my mind when they cannot see where it was going to go - Banks owning the AMC and telling appraisers what they will get paid and if you don;t take that payment, you dont' get any business - how is this not pressure and intimidation? The only ones getting rich off this are the ignorant "review appraisers" for the AMC and the Banks who own them. Has anyone found the one stop place for filing a grievance against an AMC in respect to a violation of the HVCC? Who is governing them? If I had a place to file a complaint I would. Today I'm sending yet another letter to the Inspector General for the STate of Ohio in regards to my filed complaint against the State of Ohio.

MortgageBrokerGal: all good points! I had read that HUD Chief Donovan wanted to raise UFMIP and monthly MIP as well. Recall Fran & Brian were talking about the possibility FHA would go under its statutory reserve requirement. Raising both MIP factors is the smart move there--they were lowered in response to FHA's reserve being too big when Foreclosures went down. IMHO 3 1/2% vs. 5% isn't really a big deal either way. Someone who can save up $7,000 can save $10,000--it just may take a little longer to do...

WE all focused on the HVCC crap and hopefully we can get that turned away but where is the focus on YSP and the new stupid GFE? WE not only need a little heat on the subject, we need a volcano on the subject. If we don't get this turned around, more people will be on unemployment and mor business will fail and the cost of a loan will shyrocket since the BANKS will have ultimate control of the market.

Gee Mark...your starting to get the kinda the picture on how us appraisers feel. We pay lic fees...take the required classes to become both and FHA (national) and state level appraiser...have to include additional forms (1004mc)with NO compensation for out time, and get our income drastically reduced by banks/lenders...

Regarding the new FHA proposals, check this one out: Should it be more expensive to get a loan insured by the Federal Housing Administration? That is the question the House Financial Services Committee examined last week Currently, FHA loans comprise more than 30% of the entire home-loan market. But as some of those insured loans have defaulted, the FHA loan-guarantee fund has slipped below the Congressionally mandated 2% level. As a result, some lawmakers are suggesting that FHA loans need to be more expensive to obtain. In fact, a House bill, the FHA Taxpayer Protection Act of 2009, would increase the minimum downpayment required to obtain a FHA loan to 5% from 3.5%. Almost 90% of FHA purchase loans issued between January and August 2009 had loan-to-value (LTV) ratios of 96 or higher, according to written testimony from Robert Story, chairman of the Mortgage Bankers Association. That amounts to a very small commitment on the parts of buyers. Housing and Urban Development secretary Shaun Donovan's testimony said he is committed to raising the expense of borrowing, though the agency is still exploring the best options and doesn't necessarily support raising the downpayment requirement. "We have made the decision to exercise our authority to increase the up-front cash that a borrower has to bring to the table in an FHA-backed loan -- to make sure that FHA borrowers have more 'skin in the game' and a stronger equity position in their loans," he said. Donovan outlined three such options: Increase the downpayment requirement, currently at a minimum of 3.5%; raise the upfront premium insurance premium from 1.75% to as much as 3%, which the FHA already has the authority to do; and decrease the allowable seller concessions for closing costs, which are now 6%, to 3%. Critics of increasing the upfront borrowing costs claim it's both unnecessary and could imperil the weak housing market recovery. Source: CNN/Money

So, let me get this straight. As a Broker I not only have to meet state licensing requirements(testing and yearly classes) and I have to meet the national requirements (testing and yearly education requirements) plus all their fees and people who work for a Bank get off scott free? Now I'm even more pissed. They take away our YSP income starting Jan 1. Come on guys, take the lead and take some money and lets hire a lawyer.

If they take away YSP from the mortgage industry are they then going to take it away from the car industry?

Welcome back, Frank and Brian! Lot's of good information today!

If the Feds want to do away with commissions (YSP) they better do away with commissions on all types of employment because they are based on the same concept as Loan Originators. Car salesman, insurance agents, etc. Don't pick on LO's alone.

In my humble opinion I think it is a bunch of garbage that they are making brokers/bankers get licensed & tested but if you work for a bank you get a registration. A registration?! Are you serious?!! So all of the LO's who don't have a clue go work for BOA or Wells or someone else they don't need to take a test. Someone explain to me the logic. Let's get it straight, there are some quality originator's at the bank's & I'm sure they don't have a problem with taking the test. But it should apply to all not just some!

Glad you are back, love the "Think your having a Bad Day?" segment. Thanks to NAR for stepping up and trying to protect FHA

http://fwd4.me/7lE Barney Frank's hypocracy can be so obvious ... http://twitter.com/ablemortgageco

Come on, where's the interesting discussion this morning?

I've read in two different places: 1. Loan Origination Fee on FHA is going to be CAPPED at 1%; and 2. Loan Origination Fee cap of 1% on FHA loans is going to be eliminated. Which one is it as of Jan 1, 2010? Anyone know?

It is not the "amount of skin you have in the game," that makes a difference. What makes a difference for most people is that they have the income to afford the payments, and that the payments don't go up (can you say ARMs) beyond their ability to pay. Fortunately, most homeowners do not think like mortgage holders and make business decisions to not pay based upon what finacially is in their best interests. In fact most homeowners/owner occupants stay in their situations long past when it would be best to bail. For Investor FHA 5% in is probably a good idea, in fact, why not raise that to 20%?

Is increasing the down payment by 1.5% REALLY going to make a difference in FHA's stability? I think not an extra 1.5% on a 200k loan is $3,000. more down in a what appears to be fragile market it is only going to prevent NOT help consumers from buying. FHA's sole purpose and spirit of the program has been "To help serve the underserved" How does changing the down help live up to this philosophy? When UFMIP came out it was 3.8 and as the fund got stronger it was lowered to where we are now 1.75% Want to save the fund and make FHA solid raise the UFMIP back up the 3.8% Making a loan tougher to get is NOT going to solve this current housing crisis only prolong it. Since I started doing loans in 1975 Loans have never ever been tougher to do!

SAFE Act- in Florida...AEs must be licensed by end of calendar year 2009. I can understand the contract processors or contract underwriters or loan originators, but do not understand the requirement for lender representatives. State and Federal representatives have gone off the deep end!