PHOENIX, AZ ¨C May 18, 2009. Economic crisis spurred by real estate market decline has
unfortunately put the HVCC (Home Valuation Code of Conduct) at the forefront
of real estate reform.There is evidence that this new law will have a drastic
negative effect on mortgage brokers, appraisers and,most importantly the consumer.
If you own a home or are considering buying a home, or work in the real estate/mortgage
industry you should be concerned with this new law.
The HVCC was created by New York Attorney General Cuomo as a solution to deter fraud in the
mortgage industry.
The HVCC has been in effect since May 1, 2009. Many consumers and mortgage professionals
are disgusted with
the initial results of enforcing the HVCC. For example, Lonnie Cooper, Vice President of Sales
with Absolute Mortgage Company stated on May 12,
"I have 20 orders entered with the lenders through their new appraisal systems per the HVCC and
not one of my customers has been contacted to set up
an appraisal appointment.¡± These delays hurt the consumer because they have to pay for rate
extensions and possibly for another appraisal with another
lender - these additional fees could be around $1000 for an average sized loan. How does one
avoid these pitfalls? The solution is FHA loans and/or using
correspondent lenders.
There has also been much controversy over the larger AMCs (appraisal management
companies) that the big lenders are using since the inception of the HVCC.
Larger AMCs provide very little customer service for the mortgage brokers, who ultimately service
the consumer.
Mortgage brokers already have problems with the quality of the reports delivered by the larger
AMCs. Kate Eugene, President of Go Appraisals, Inc.
states on May 13, "This is just the beginning. Consumers looking to refinance should consider an
FHA loan, as these are not bound by the HVCC. Then,
ask your lender to use a smaller AMC, which may get your appraisal done more quickly so you
can avoid additional penalties and fees.
"What smaller AMC? Go Appraisals, Inc.
Go Appraisals, Inc. is a different AMC ¨C they have consistently offered solutions to lenders'
problems and delivered on their promises. Go Appraisals, Inc. is a nationwide company that has
a large panel of certified
appraisers (including FHA), a full time staff to handle all of the lenders' and mortgage brokers'
requests and inquiries,
fast turn time, quality control, and they offer fair payment to independent appraisers. Contact Go
Appraisals, Inc.
by visiting their website: www.goappraisalsinc.com or call their office at: 877-944-6448 x 80 for
more information.
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