Comments on: HVCC: Who Is The Least Interested?

By: Appraiser’s HVCC Rules on Way Out?

Appraiser’s HVCC Rules on Way Out? — Sat, 24 Oct 2009 01:15:53 +0000

[...] And our own broker, Jay Thompson of the Best Damn Real Estate Blog on the Planet hosted a guest blogger, loan officer Justin McHood, who coined the best 140-character soundbite slamming the HVCC, evah. [...]

By: mk_109

mk_109 — Fri, 23 Oct 2009 20:34:02 +0000

The problem is that if HVCC keeps going too long, too many of these AMC companies will feel “entitled” to their position in the industry. They are taking money from appraisers and from borrowers and doing what exactly? A professional appraiser has to give up over 1/4-1/2 of his pay while he is still doing all of the work and then some extra. Its a ridiculous scam to make a middleman and the banks more rich at the expense of the appraiser and the borrower. Should there be rules to help against mortgage fraud? Of course! But this is not it. Anyway, if the AMC companies and banks are going to feel the profits of HVCC for too long, they will not go out without a fight (political lobbying , etc) and remain leaches to the profit from the work of others. Does anyone know what the time frame of HR 3044 is of going through congress, and what exactly will happen if its passed? (..by the way I am a CA mortgage and real estate broker. My mother has had her own independent appraiser business for over 10 years and has always performed with integrity and quality in the industry, and has to settle for huge commission cuts and more work requirements from her AMC companies that she uses. I just passed the appraiser trainee license and had planned on going into the appraisal business with her). Imagine if you had a professional business you invested your life into and were making 60k-100k per year and suddenly someone came in and mandated your pay be cut to 35k- 60k per year and you had less decision making power, and more work to do for less money- and keep in mind this is work which is so important to the whole industry and economy.

By: justinmchood

justinmchood — Sat, 19 Sep 2009 06:36:01 +0000

Thanks.

Your check its in the mail for saying such great things!

Justin

By: justinmchood

justinmchood — Sat, 19 Sep 2009 04:36:01 +0000

Thanks.

Your check its in the mail for saying such great things!

Justin

By: shanehollenback

shanehollenback — Fri, 18 Sep 2009 17:22:40 +0000

Justin, this is an outstanding post with a great perspective of the “downfalls” of HVCC. You hit this one out of the park.

By: appraiserusa

appraiserusa — Mon, 14 Sep 2009 15:26:50 +0000

Thanks for giving the public a small bit of insight into the raw deal that appraisers were handed with HVCC on May 1st. For more information on the topic of HVCC and how it is also raping the American homeowner visit www.investsmart.com

By: jamila1

jamila1 — Thu, 10 Sep 2009 07:29:47 +0000

I think that many appraisers predict that the profession cannot continue to attract competent professionals, capable of producing reliable reports, given the relentless pressure for lower fees and faster turn times from appraiser management companies (AMCs): the most competent and talented will migrate to professions that are more profitable and satisfying, goes the prediction.

By: justinmchood

justinmchood — Wed, 09 Sep 2009 23:23:49 +0000

@Mortgage Industry Pro,

Excellent points and insight. Thanks for sharing with everyone.

Justin

By: Weekly summary of real estate news, Memphis comments, and other interesting stuff – September 9th | Memphis Real Estate Buzz

Wed, 09 Sep 2009 06:12:17 +0000

[...] Shared HVCC: Who Is The Least Interested? — The Phoenix Real Estate Guy. [...]

By: Mortgage Industry Pro

Mortgage Industry Pro — Tue, 08 Sep 2009 11:28:35 +0000

Justin,

Good post. You make a lot of valid points. Most important is the one that you start with: the appraisal management companies don’t have a financial stake in the transaction, and that’s a good thing. In fact, the same could – and should – be said for appraisers in general.

The emotional aspect that datadude mentions is a very influential component in any real estate transaction, one that in no small part led to artificially inflated prices bringing the bubble to the point of bursting.

One thing that troubles me about this whole controversy is the way in which all AMCs are being painted with the same broad brush.

There are quite a few large and reputable AMCs that have been in the business for decades and whose business model and assignment criteria haven’t changed one iota since HVCC. They only use certified and/or licensed appraisers and use geographical competency as the primary assignment criteria.

I know several appraisers who work for these companies, and they’re extremely capable, knowledgeable folks who work hard in markets they’re intimately familiar with. Their pay scale hasn’t changed post-HVCC, nor has their commitment to USPAP, nor their professionalism.

Of course, HVCC has created a financial opportunity and incentive for a lot of new AMCs to enter the business, and some of these may indeed be randomly selecting appraisers from a pool and assigning them without enough consideration as to their experience level or geographical competency.

The real lesson here is that lenders shouldn’t be shopping out appraisals to fly-by-night operations, but should instead be steering that important work out to AMCs that have proven themselves reliable over many years.

Like the blog. Keep up the good work.