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HVCC is bad for the Real Estate Market.
July 15th, 2009 5:00 PM
Everybody in the real estate business does not like the HVCC law except for the appraiser management companies and reject appraisers. This rule is bad for homeowner, mortgage brokers, and the good real estate appraisers. This law gives a lot of power to the banks by forcing homeowners to pay higher appraisal fees. Under the old rules the bank had to compete with the mortgage broker for the appraisal fees. But under the HVCC the mortgage broker won’t be able to choose their own appraisers and will be at the mercy of the banks. Under the HVCC rule the banks will choose inexperience appraiser who are will in to work for ½ the appraisal fees. Then banks charge the homeowner $500 for the appraisal and then give the appraiser $245. Experience appraisers do not want to work for reduce pay. If live in Daly City, CA where the rent is expensive $1,500 for a 2 bedroom apartment, gas is expensive, continuing education, appraisal licensing fees, food is expensive, data for gathering information is getting more expensive and my appraisal fees are getting lower. The bank own indirectly a lot of these appraisal management companies. Appraisal management companies have no accountability but yet they can take over 50% of the appraisal fees to me I don’t think that is fair. The AMC are worst that the mortgage brokers because the mortgage broker will only pressure for a value but allow to retain your full fees. The appraisal management companies will pressure the appraiser for value and take over 50% of the appraisal fee and charge the homeowner more for the appraisal. It give the homeowner the impression that the appraiser is charging the homeowner more for the appraiser but the reality is the appraisal management company is charging more for the appraisal. For example Wells Fargo bank which owns Rels. I submitted my application for Rels and got approved by the they wanted me to do a single family house for $245. The normal appraisal in the San Francisco Bay Area is between $350 to $400. The more experience appraisers are refusing to work for $245 an appraisal. To do a good appraisal it may take 8 to 12 hours to complete the appraisal. Mind you they are charging the homeowner $500 for the appraisal. Appraisers are very vital to the whole loan process because we determine the true market value.

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Posted by Jamice Welbon on July 15th, 2009 5:00 PMPost a Comment

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