We're a couple of days into the HVCC (havok) and the articles keep coming. The best one recently has been this piece from CNBC, posted on May 1, 2009:
Home Valuation Code of Conduct: Fix or Fraud?
By: Diana Olick
Today is the official start of a new policy at Fannie Mae and Freddie Mac, to only buy loans that were appraised under the Home Valuation Code of Conduct. The HVCC was the outgrowth of a lawsuit filed by New York Sate Attorney General Andrew Cuomo against Washington Mutual and was designed to “improve the reliability of home appraisals,” according to FHFA, Fannie and Freddie’s regulator.
Jim Amorin, President of the Appraisal Institute was quoted:
“Yesterday, Thursday, appraisers may have had 50 or 60 clients that they could deal with, so if they were getting undue pressure from somebody they could just tell that client no, I'm not doing any more work for you,” says Jim Amorin, of the Appraisal Institute. “Today the number of players in the field have been drastically reduced to generally these appraisal management companies, so the pressure that's going to be brought to bear on appraisers we fear is going to be as strong if not stronger than it was before, the whole thing the code of conduct was trying to address.”
...and then, this, with a superb statement by Dana Bain:
But the biggest issue is something Dana, a mortgage broker, cites in a blast to the RealtyCheck:
Based on Attorney General Cuomo’s website, the appraisal fraud in the mortgage industry was due to the practices used by some of the country’s largest banks pressuring appraisers to artificially inflate the value of homes.
Why is it that some of the largest banks in the country are allowed to have partial ownership in the Appraisal Management Companies ?? Isn’t this once again the fox watching the hen house??Read the entire ARTICLE
Don't miss the VIDEO segment
Great Job, Diana!
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Keep checking back for more on the HVCC. Appraiser Active has quite a bit of information to post, but we're trying to get some appraisals out the door (FHA, Relocation, and Private work for guardians and personal representatives), none of it for Appraisal Management Companies
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1 comments:
Well it is May 11th, and I can now report the effects of HVCC. The business relationships I have spent the last decade or so nourishing, GONE. I can’t even speak to my “friends” the lenders anymore because it is against the law. I have known some of these people for 13 years or more and now I can’t talk to them? Not that I have any work to talk to them about; they have to send their appraisal orders to some AMC in Nevada to be performed by some Johnny-come –lately to the appraisal business who doesn’t even know where Daddysville is much less if it is in NC, but he’s going to the appraisal for $225. We did 80 reports as a company last month, and so far I am on track to do maybe 20. Thanks Cuomo!
I have a husband, two homes, two kids, and two cats to take care of, what am I supposed to do now????
I have been a certified real estate appraiser for 13 years and I have never seen a market like this, where a rule imposed by a non-federal agency has taken over the sanity of an entire country.
I think I will become a dental hygienist. At least then I might have a job future, I don't think they will federally mandate dental hygienists out of a job.
I refuse to work for AMCs who want to pay me peanuts, when just a few days ago I was getting $400-450 per appraisal. AMCs want to do nothing, make me do all the work, make me take all the liability, and pay me a paltry $200-275 for my hard work. No thanks! I will sit at home first.
I am disgusted with the state of the appraisal today. It is appalling that decent hardworking individuals, who have done nothing but live a good and honest life, can have their entire livelihood knocked out by one misinformed individual that turned a case against FNMA into a federally mandated “bandaid”.
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