{"id":8458,"date":"2009-05-15T01:25:09","date_gmt":"2009-05-15T08:25:09","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=8458"},"modified":"2009-05-15T01:25:09","modified_gmt":"2009-05-15T08:25:09","slug":"the-139250-appraisal-fee-or-how-the-home-valuation-code-of-conduct-rewards-inefficiency-at-the-expense-of-the-consumer","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8458\/the-139250-appraisal-fee-or-how-the-home-valuation-code-of-conduct-rewards-inefficiency-at-the-expense-of-the-consumer\/","title":{"rendered":"The $1392.50 Appraisal Fee or How the Home Valuation Code of Conduct Rewards Inefficiency At the Expense of the Consumer"},"content":{"rendered":"

Have you heard of the Home Valuation Code of Conduct<\/a>?\u00a0 New York Attorney General Cuomo forced Fannie Mae and Freddie Mac to adopt the measure, in what can only be described as a Machiavellian scheme<\/a>.\u00a0 Essentially, mortgage brokers are forbidden from direct contact with residential appraisers; all appraisals for agency loans (not FHA or VA) must be ordered by a lender-approved appraisal management company.<\/p>\n

What’s an appraisal management company? <\/strong> Exactly.<\/p>\n

The intended result is to keep all loan production personnel (broker or banker) from undue influence on the independent appraisers hired to perform the valuation report.\u00a0 You see, rather than to cease doing business with rogue mortgage brokers or unscrupulous lenders, a minority of appraisers felt it necessary to encourage Attorney General Cuomo to “put the arm” on the lending industry to protect their past ethical trangressions.<\/p>\n

Wholesale lenders, realizing that the appraisal would now be THEIR property, clamored to the idea.\u00a0 This was just another chance to restrict the value proposition of mortgage brokers (portability) and lock up some business.<\/p>\n

Big Banks 1 Consumers 0<\/strong><\/p>\n

Wait!\u00a0 That’s not all!\u00a0 If the assigned appraiser is backed up, tough crap!<\/p>\n

You see where I’m going with this?\u00a0 The lender pipelines are ALREADY clogged up because the volume has spiked and the employee count is down.\u00a0 Soon, we’ll be adding loan applications from the Obama refinance\/loan modification plan <\/a>and a further drain will be put on the overloaded appraisers.\u00a0 Can I choose to deal with appraisers who won’t do refinance transactions?\u00a0 Nuthin’ doin.\u00a0 Ya takes what ya gets under HVCC.<\/p>\n

Big Banks 2 Consumers 0<\/strong><\/p>\n

Still, I persist like Mr. Magoo negotiates a maze.\u00a0 I took a loan application last week, checked Zillow for the Zestimate, closed my eyes and ordered the appraisal from the selected lender.\u00a0 I locked the rate for thirty days and uploaded the loan submission.\u00a0 I expected 10 business days in underwriting; surely, the appraisal would be uploaded within a week.<\/p>\n

As Meatloaf might say “Stop Right There!\u00a0 Before we go any further…<\/em>”<\/p>\n

I received an e-mail from the lender instructing me to immediately extend the rate lock for another 15 days…at a .25% fee.\u00a0 For this $417,000 Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Have you heard of the Home Valuation Code of Conduct?\u00a0 New York Attorney General Cuomo forced Fannie Mae and Freddie Mac to adopt the measure, in what can only be described as a Machiavellian scheme.\u00a0 Essentially, mortgage brokers are forbidden from direct contact with residential appraisers; all appraisals for agency loans (not FHA or VA) […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[],"class_list":{"0":"post-8458","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":8473,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/8473\/whats-the-hvcc-and-what-does-it-mean-to-loan-officers-realtors-and-consumers\/","url_meta":{"origin":8458,"position":0},"title":"What’s the HVCC and what does it mean to Loan Officers, Realtors and Consumers?","author":"Tom Vanderwell","date":"May 18, 2009","format":false,"excerpt":"Okay, first, I have a confession to make.\u00a0\u00a0 The bank that I work for chose to be proactive and we began implementing the Home Valuation Code of Conduct on mortgage applications taken on or after January 12.\u00a0\u00a0 Why did we do it so early?\u00a0\u00a0 I'm not going to attempt to\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":921,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/921\/are-appraisers-being-pimped-as-involuntary-seeing-eye-dogs-for-the-congenitally-blind-avms\/","url_meta":{"origin":8458,"position":1},"title":"Are appraisers being pimped as involuntary seeing-eye-dogs for the congenitally blind AVMs . . . ?","author":"Greg Swann","date":"January 21, 2007","format":false,"excerpt":"From this morning's Boston Herald:Appraisers have resented AVMs for years, in part because the computer estimates have cut into appraisal companies\u2019 business. But the industry also challenges AVMs\u2019 accuracy - especially in today\u2019s market, where prices in some locales are falling rapidly. And now, some firms claim a key industry\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1324\/zillow-notes-fear-and-ludditism-advertsing-a-better-farming-strategy-and-more\/","url_meta":{"origin":8458,"position":2},"title":"Zillow.com notes: Fear and Ludditism, advertising, a better farming strategy and more","author":"Greg Swann","date":"April 20, 2007","format":false,"excerpt":"Zillow notes: Jay Thompson, The Phoenix Real Estate Guy asks \"Why do so many agents fear Zillow?\" He makes the same point in a BusinessWeek article on the Seattle-based Realty.bot. Brian Brady, America's Most Opinionated Mortgage Broker and a BloodhoundBlog contributor, covers some of the same ground: \"Is your Realtor\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1302,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1302\/arizona-board-of-appraisal-to-zillowcom-in-your-zestimation-does-this-posturing-make-us-look-stupid\/","url_meta":{"origin":8458,"position":3},"title":"Arizona Board of Appraisal to Zillow.com: In your Zestimation, does this posturing make us look stupid?","author":"Greg Swann","date":"April 13, 2007","format":false,"excerpt":"From the Arizona Republic (tipped by Adam Tarr and Sharon Kotula):An Arizona regulatory board has ordered Zillow.com to stop offering its online estimates of home values. The Arizona Board of Appraisal has issued two cease and desist letters to the popular real estate Web site, claiming Zillow needs an appraiser\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1360,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1360\/east-valley-tribune-slams-board-of-appraisal-over-zillowcom-censorship-endorses-reagan-amendments-to-sb-1291\/","url_meta":{"origin":8458,"position":4},"title":"East Valley Tribune slams Board of Appraisal over Zillow.com censorship, endorses Reagan amendments to SB 1291","author":"Greg Swann","date":"April 27, 2007","format":false,"excerpt":"In general, newspapers influence people who are paying attention, a small but inordinately important minority. Today the East Valley Tribune, clarion of the populous suburbs east of Phoenix, came out strong for Zillow.com and other consumer-oriented Automated Valuation Models:Arizona home buyers and property speculators are fortunate the state Board of\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1565,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1565\/zillowcom-off-the-hook-in-arizona-state-rethinks-crackdown-on-online-home-appraisals\/","url_meta":{"origin":8458,"position":5},"title":"Zillow.com off the hook in Arizona?: “State rethinks crackdown on online home appraisals”","author":"Greg Swann","date":"June 22, 2007","format":false,"excerpt":"This is me in the Arizona Republic (permanent link). State rethinks crackdown on online home appraisals The move by the Arizona Board of Appraisal and Attorney General Terry Goddard to prosecute Zillow.com, and potentially other Internet-based home valuation services, may be at an end. Last June and November, the board\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=8458"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8458\/revisions"}],"predecessor-version":[{"id":8461,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/8458\/revisions\/8461"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=8458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=8458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=8458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}