TKO of the HVCC by the NAMB!!?
by Evan Vanderwey on 26/10/09 at 5:55 pm
I have been holding on to this post for some time, but on Friday, the subcommittee working on House Bill HR3126 approved it in committee. This bill contains something better than we have all been hoping for regarding HVCC and its heading for the full House of Representatives.
Ever since HVCC – Home Valuations Code of Conduct – Loan Originators in all conduits have had their hands tied when ordering the valuation appraisal report for customers. HVCC kept the Loan Officer from choosing, ordering, or even talking to the appraiser until after the transaction was closed. Even worse, appraisers from out of area (say Jackson, MI for an Okemos, MI report) were routinely chosen by the Appraisal Management Companies (AMC’s) which severely compromised the integrity of the report and valuation.
The process was slanted toward choosing appraisers who would work for less money because the AMC’s profits were higher. This has resulted in lower than market value appraised values and longer wait periods.
Realtors especially will be glad to know that if this bill finally passes their Loan Officer will again be allowed to have normal communication with appraisers for the purpose of affecting smooth transactions through to closing.
Again, this is not done yet. But what is approved in committee is NOT the “moratorium” we were hoping for but rather a Total Knock Out of the entire code and most of the implications it carries with it.
Thank your local National Association of Mortgage Brokers member. What the banks and bankers were not motivated to do because it reduced their revenues, the brokers have been fighting for and will likely win for all of us. The consumer will be the biggest winner in this.
Over the past 24 months it has been an unpopular thing to be a mortgage broker and because of a few many of us were given a bad name. I have been proud to bring excellence in rates, service and advice over the past decade and look forward to serving you with the same in the next.
Need excellent rates, service or advice on a mortgage? Call a broker!
This link is to another good post on the topic:
http://www.housingwire.com/2009/10/22/house-panel-sunsets-hvcc-in-consumer-finance-bil/
No related posts.
Danielle Dayrell
Oct 26th, 2009
Thanks for the information, Evan! You are right on it! I also think it would be wise that appraiser’s NOT have the PA in order to appraise. This may help out a lot! Why do they have a right to know the purchase price? They need to go out and give an honest appraisal without knowing the sales price. Maybe then, we can get a true appraisal…
Thanks for all of your work! YOU are appreciated!
Steve
Oct 26th, 2009
That is terrific news! Thanks for getting the word out!
evan
Oct 30th, 2009
Thanks Danielle and Steve, we are all hoping that his is repealed. It has a ways to go before that happens, but it needs to come out of committee before it can take the next step.