Once upon a time . . .
There was a horse that needed a nail for his shoe.
Ever hear that story?
In an attempt to protect consumers from themselves, the Federal Government has enacted the HVCC -- Homeowners Valuation Code of Conduct, among other things. As a result, lenders are not allowed to:
- order the appraisals,
- set up the appraisal appointments,
- follow-up on the appraisal with the appraiser,
- among other things.
Appraisals orders are now submitted to a "clearing house" which randomly assigns the appraiser.
I'm even thinking it might be one conglomerate . . . The Nationwide Appraisal Company.
In a few Active Rain posts I've read that these assignments can be to appraisers not familiar, or even from the local market of the property being sold. I've not run across this, but I realize it's a frequent occurrance.
And when you get an appraiser . . . who can't dot an "i" or cross a "t" . . . oh how it screws things up.
The delays can be amazing.
In a recent transaction, the appraiser forgot to check off the box with the question: "Were the utilities on at the time of the appraisal?"
A nit-picky point, but the box wasn't checked YES. (It wasn't check at all.) Result: The appraisal was bounced back.
Of course, since the appraiser isn't communicating with the mortgage broker, we had to do some sleuthing as to why the appraisal wasn't forthcoming. Then the mortgage broker had to re-submit the request.
A process that could have taken a day ended up taking all week!
For the want of a nail . . . the kingdom was lost?!?
EBA Portland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time
EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
| Carla Muss-Jacobs 503-810-7192 Carla@carlahomes.com |
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Absolutely frustrating! My most recent adventure with this was when the appraiser said that he could not go out to appraise the house until a week before the close of escrow because he was afraid that the prices were falling so quickly that his appraisal would be kicked back. What next?
Hi Carla, The more things change the more they stay the same. I am form the government and I am here to Help you. What a boondoggle this HVCC has become and the stories you hear are all true. I just did a re post of an excellent blog that may be our answer. A new bill in Congress. Dare we hope for sanity
Hi Susan w/Laxson Assoc. -- Absolutely Fabulous FRUSTRATING is right!!
Hey Guy . . . HA HA HA we will dare! We have no other choice.
AMEN! I think Atty General Cuomo is
Hi Nevin -- did he do this?!? I seem to recall he did. YEAH . . . let's elect him!! HA HA HA
Oh lord I'd better not even get started on this late of Friday night when it's almost happy hour time! But I will...just a bit. Give me back the old system - this new stupid one is so stupid and so ........... ugggggggg.
Ok....that was the rant for the week. Lame, yes, but it is Friday night! Enjoy your weekend Carla :)
Hi Carla: I have to add my 2 cents here. I hate HVCC! Enough said!
:)
Hey Anna B -- if this blog does nothing else, it gives us ALL a reason to drink! HA HA HA
Hi Matt . . . duly noted! ;-)
I was so glad to hear that a new bill just passed a House Committee vote that would repeal the HVCC. It looks very promising. Fingers crossed!!
Hi Rick -- THANKS! I think that's a good move!
This HVCC is just another example of government trying to control something large in an effort to try and fix a small problem. Were there some appraisers conspiring with either loan officers or realtors? Potentially. I could see that happening on occasion. However, the idea of making everyone else suffer through this new guidelines in an effort to "protect" the consumer is absolutely ridiculous. Just another example of people in control making decisions when they know nothing about the industry and the impact their actions will have upon it.
Eric J - www.dreamhomefinancing.com
Hi Eric -- your summation is great! Yes, potentially -- and probably. There are crooks everywhere, but to toss everyone into the bin is unfair.
What could go wrong with an appraiser completely unfamiliar with the local market coming out to make the decision on a house appraising or not.
JL -- LOL . . . exactly!