HVCC Battle Continues
For those of you who are not familiar with HVCC, it stands for HomeValuation Code of Conduct which went into effect in May and has caused problems Nationwide. Here are some of the problems:
- Since "Appraisal Management Companies (AMC's)" are taking up to 40% of the total appraisal fee, and are not being regulated to ensure that their appraisers are licensed and competent, we are seeing unlicensed and inexperienced individuals performing property inspections with grave data entry errors. These inferior appraisals are then being "signed-off" by other parties that never inspected the property and are creating unnecessary financial hardship for buyers and sellers.
- With mortgage loans being denied due to inaccurate appraisals, borrowers are being forced to apply with other lenders who in turn have to charge the consumer another appraisal fee to proceed with the transaction. This vicious cycle can go on endlessly costing well intended clients a great deal of money and time.
- Under HVCC, no one involved in the transaction is allowed to communicate these major issues (even licensed loan originators) directly to their appraisers. So countless real estate transactions that would have otherwise closed are now failing, resulting in continued property devaluation and offering NO stimulus to our economy with the exception of the unregulated AMC's who are making unjustified profits at the expense of home loan applicants and licensed, qualified appraisers.
- Licensed appraisers have legal and ethical standards in place already. The emphasis should be on making appraisers abide by these, rather than frustrating the ordering and communication process. This well intended legislation is severely misguided.
Although HVCC has good intentions, it is causing as much as 50% of contracts to be re-negotiated or terminated.
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.
If you want to help improve this bad situation you can sign a petition to help by going to this address: http://go.emaildir1.com/_p_ga4x2nexudfubkq3rdrb28uxbdruzmuxhdvt2nwxna4e2ktsgdfx2mtsja4exnsrn4jw7kaet6kc3bhrv29bntgfe88mnbfva28cx7rr548wkjz_p_/click.emaildirect
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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