HVCC Dead or Alive? HR 4173, the Wall Street Reform and Consumer Protection Act of 2009, is quickly on its way through the legislative process. If passed in its current form, the provision to "sunset" the Home Valuation Code of Conduct will succeed to the delight of loan originators across the country.
"The HVCC has been highly controversial. It has removed anyone compensated on loan production from any material involvement in the appraisal fulfillment process on Fannie and Freddie loans. The HVCC has created enormous angst throughout the lending and appraiser community," stated Tony Ebeyer, Certified Appraiser and COO of StreetLinks National Appraisal. HR 4173, if passed, "shall not prohibit lenders, the Federal National Mortgage Corporation or the Federal Home Loan Mortgage Corporation from accepting any appraisal report completed by an appraiser selected, retained or compensated in any manner by a mortgage loan originator." And, "the Home Valuation Code of Conduct, announced by the Federal Housing Finance Agency on December 23, 2008, shall have no effect". Steve Haslam, CEO of StreetLinks National Appraisal, has authored a white-paper View Here: http://streetlinks.com/?utm_source=vertical&utm_medium=em&utm_campaign=vertical questioning whether passage of HR 4173 will have any impact on the appraiser- independence policies lenders implemented under the HVCC. Haslam says, "Loan brokers are outraged over the HVCC as their business model was severely impacted by it. They feel the blame for the woes of the mortgage-market has been disproportionately targeted at them and that the lenders that underwrote their loan submissions, the appraisers that derived the home values, and the capital markets that fueled the appetite for the exotic loan products originated were all part of the big picture that led to the HVCC. Haslam suggests that, "Even if the HVCC is sun-setted, a majority of lenders may continue to execute the same appraiser independence procedures they instituted under the HVCC. Why? Effective January 1st, 2010, FHA adopts appraiser-independence procedures very similar to the HVCC. Additionally, many states have instituted appraiser-independence rules that demand the same. Furthermore, rating agencies have indicated loans and portfolios not subject to defined appraiser-independence policies may be downgraded. Finally, lenders interested in top-dollar for their loans, improved balance-sheets, increased stock value and better industry perception will continue to protect themselves from the loan repurchase risk that elevates when appraisal values and appraisal- independence procedures appear compromised." The white-paper, entitled "HVCC Dead or Alive?" also reviews lender solutions to appraiser-independence and outlines what lenders should consider when evaluating the same. As it relates to loan brokers, Haslam encourages them to educate themselves, then interview prospective lenders on their appraisal process. "While broker population and loan volume has declined recently, the appetite for this invaluable source of business will grow again over time. Brokers may continue to lose empowerment over the appraisal process but they still have influence with the lenders with whom they choose to work. The broker is the customer of the lender. As the customer, the broker should carefully evaluate each lender's wholesale appraisal process. Lenders who truly value their broker relationships understand they must select appraisal solutions that are consumer and broker friendly - as well as compliant." "HVCC Dead or Alive" can be viewed in its entirety here. http://streetlinks.com/?utm_source=vertical&utm_medium=em&utm_campaign=vertical Steve Haslam, CEO of StreetLinks National Appraisal Services, is a 20 year mortgage industry veteran who has led all aspects of national retail and brokerage platforms. Steve also formerly led one of the nation's largest captive appraisal management companies. Steve joined StreetLinks because, "as a former customer ordering thousands of appraisals per month, StreetLinks was the only company who could consistently meet the demands of everyone in the lending cycle - from LO to Processor to Underwriter to Investor. Given the current lending and regulatory environment, and having been a customer of almost every major traditional appraisal management company in my career, StreetLinks is positioned as the 'best of breed' to meet the appraisal needs of this market." Steve can be contacted at [email protected] Modify Your Subscription http://verticalnewsteam.com/members.aspx?Task=OOS&SI=4391947&E=cari-kawan%40yahoogroups.com&S=1&NL=186 (c) 2009 MTrends-VerticalMail To Be Removed: http://verticalnewsteam.com/members.aspx?Task=OOS&SI=4391947&E=cari-kawan%40yahoogroups.com&S=1&NL=186 (c) 2009 VerticalMail [Non-text portions of this message have been removed]
