HOME VALUATION CODE OF CONDUCT "HVCC" APPEARS TO BE A SHORT-LIVED EXPERIMENT
Housing Wire reports that Rep. Gary Miller (R) of California's bill to sunset the HVCC in HR 3126 passed the House Financial Services Committee this week. Several industry associations have quietly confirmed to me that the Home Valuation Code of Conduct (HVCC) will soon be dead. The HVCC under HR 3126 sunsets through the Consumer Financial Protection Agency (CFPA). Many observers believe the sunsetting of the HVCC under the CFPA is instrumental in getting the CFPA passed in congress.
The CFPA bill passed the House Financial Services Committee by a vote of 39 to 29 which was a major victory for Rep. Barney Frank (D). Many observers believe the HVCC will still be quickly phased out even if the CFPA doesn't win as congress is quickly growing weary of the consumer and industry complaints about some Appraisal Management Companies (AMC). Consumers, local taxing bodies, and some in the real estate industry point to increased appraisal fees and unqualified appraisers from distant states appraising local property with unsubstantiated valuations which they believe is further deteriorating the real estate markets across the United States.
Comments
I hope that the caption of this article is correct.
Have you heard the news of the day? The government is now determined to cut compensation of the TARP bank executives by 50-90% and the bankers are fired up like you would not belief. Their argument: We can't compete if you cut the pay of our best employees...our best and brightest will leave the business!
Does this sound familiar? The very banks who refute that a 50% pay cut in the appraisal profession would take out the most experienced appraisers are now being forced to admit that COMPENSATION TRULY DOES AFFECT the experience level that an industry retains. It really is amazing how fast these guys learn to do the math when their own income is at stake.
Maybe what comes around really does go around
Posted by: David | October 23, 2009 3:40 PM
I am an appraiser and I have been taken advantage of by an AMC which collects the money and holds it for 1 to 2 months before paying me. They say they have a backlog of accounts payable which implies they have plenty of work. The AMC is an affiliate of a large Title company that touts itself as a leader in the Industry. Leader, I wonder???
Here is their reply regarding paying me: We truly are behind in processing payments and hope to be caught up in the next 30 days. If we are able to get your check processed before Nov. 15, I certainly will get it to you.
Posted by: Leland Turner | October 23, 2009 4:24 PM
As a homebuyer I hope the HVCC is repealed - this third party intervention is delaying settlement on my home purchase.
Posted by: Tami | November 5, 2009 1:48 PM
In what other profession are fee dictated by a 3rd party and you have no control of getting work assignments? Also, when trying to get on many AMC lists of appraisers you are told that there is no room and not accepting new appraisers. Sound like contraint of trade and discrimination to me.
Posted by: scott kenmneth young | January 20, 2010 2:32 PM
MOST THIRD PARTY COMPANIES ARE OWNED AND RUN BY THE LENDERS. THESE COMPANIES HAVE COMPLETELY INCOMPETANT EMPLOYEES WHO DICTATE WHO IS TO RECEIVE APPRAISALS ACCORDING TO WHO TAKES THE LOWEST PRICE AND DOES EXACTELY WHAT THEY WANT US TO DO. MOST OF THEIR REQUESTS DO NOT MAKE SENSE BUT HOLDS UP THE LOAN.WE HAVE BEEN REQUIRED TO TAKE CONTINUING ED COURSES BY THESE PEOPLE, TAKEN OFF LISTS FOR NOT USING THE COMPS THEY THOUGHT WE SHOULD HAVE USED(WHICH WERE
15 MILES AWAY IN THE CITY )THEY ARE TRYING TO SUBSTANTIATE THEIR SALERY. IF AN APPRAISER PERSON HAS A DISAGREEMENT ABOUT ONE THING, YOU ARE MOST LIKELY TAKEN OFF THEIR LIST FOREVER.THEY RUIN THE APPRAISAL BUSINESS AND IF IT CONTINUES THERE WILL BE NO APPRAISERS. A LARGE PERCENTAGE OF APPRAISER HAVE ALREADY LEFT THE BUSINESS. WE HAVE LESS INDEPENDANCE WITH THEM THAN WE EVER HAD. THEY SHOULD HAVE TO BE LICENCED AND SHOULD HAVE TO ANSWER TO SOMEONE JUST AS WE DO.
THANK YOU
Posted by: Joan Huhn | January 21, 2010 3:30 PM
I have had my own appraisal business since 1995. I had a great customer base and now have resorted to applying to tons of AMC's and don't hear or get any work from them. Could it be that they are picking the cheapest (fees) appraisers and I just wasted my time? Most of the appraisers that charge low fees are either new or bad appraisers that didn't have any work before so they undercut fees just to get work. They are the ones getting the majority of the orders. I can't afford to keep my office and staff on these low fees so I may have to go out of business. I also think the public needs to know more about the HVCC. They are being ripped off by paying more for the appraisal.
Posted by: Lee Ann McDermott | February 9, 2010 12:37 PM