Home Builders, Realtors and Remodelers- Sign the Petition to Help Get Home Values Stabilized!
September 23, 2009 by Coach Rick
Hello HVCC Petition Signer:
HVCC Continues to devastate home values across the US. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC), which now has over 80 co-sponsors!
Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this code. You are well aware of the harmful nature of this horribly misguided code, but others may not be. We implore you to forward this petition link to everyone you know…EVEN IF YOU ALREADY HAVE. Let’s make sure this petition gets enough signatures to open the eyes of the representatives that have the power to initiate change!
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6 Responses to “Home Builders, Realtors and Remodelers- Sign the Petition to Help Get Home Values Stabilized!”
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I have been in the mortgage business for over 14 years and I can honestly say this hvcc change in our industy has created a nightmare, closings are being delayed, reviews are still always required? its a joke!
I don’t know if remodelers or home builders fully understand the impact of this new law. Thanks for the comments.
As an appraiser of 30 years (who is currently considering getting out of mortgage lending appraisal work entirely because I face a 50% income decrease due to the cut in fee the AMC’s take) I feel the answer is simply to order a review by a review appraiser of every appraisal done. A few years back, unethical brokers would ask me to hit the “number” they needed on an appraisal, and would try to entice me by letting me know that “no review will be done”.
The HVCC keeps the unethical brokers and appraisers from working together to commit fraud, however the unintended consequence is that the system is crippled: if I have a question on how to proceed after seeing a property I must go to the AMC who goes to the lender and then gets back to me….this process has taken a few weeks in some cases…in the meantime locks are expiring, etc.
Another unintended consequence is that due to the high fee cut some of the AMC’s are taking, the appraisers willing to work for these fees tend to be less experienced, and reportedly often without expertise in the area the home is located in. In some instances the AMC’s are not only cutting the appraiser’s fee deeply, they are also charging the customer more for the appraisal than had been customary before the advent of the HVCC.
Although the intent of the HVCC is laudable, the consequences are crippling to the lending process and dangerous to the public if the majority of appraisal work is going to be done buy inexperienced appraisers.
Beth,
I have seen this first hand with my clients. Inexperienced or “junior” appraisers are doing the majority of the work and experienced appraisers such as yourself are getting less work or just getting out of the business altogether. I just found out this petition has reached 100,000 signatures and will be delivered to Andrew Cuomo’s office before Thanksgiving.
Thanks for sharing your opinion!
This HVCC thing is a disgrace to the appraisal industry!! I feel as if it is almost reverse discrimination!! Seems if an HVCC appraisal is done the home tends to come in much lower in value than say an FHA appraisal? Is this not Fraud also?? Bringing the value of a home in at the lowest possible value regardless of higher and better comps??
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