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May 1st Appraisal Guidelines...

Posted on: 22nd Apr, 2009 07:50 pm
Hey everyone.... just posted an article on my blog about the new appraisal guidelines.

Check it out, I'm not selling anything. Would love your opinion...

Best of luck,
Nate
"http://www.nathansoliday.com"

[size=9:c3665c5b7c][color=Red:c3665c5b7c][External link deactivated as per forum rules][/color:c3665c5b7c][/size:c3665c5b7c]
hi solidaynathan,

i went through your blog post on the new appraisal guidelines. it is quite informative and those looking to purchase a home or refinance an existing loan will no doubt benefit by acquainting themselves with this new guidelines. however, i feel that if you had written about the guidelines here on the forum in brief rather than giving only the link to you blogpost on the forum, it would have been better. most visitors would prefer reading about it directly on the forum and leave comments on here to visiting the blogpost and reading it there.
Posted on: 23rd Apr, 2009 01:04 am
i didn't read it, but i know about it, of course. the new guidelines are directly a result of some fraudulent transactions that took place and had a great deal to do with lender-appraiser relationships that were a little bit too cuddley.

this is aimed at changing those relationships and making the appraisal process more independent.
Posted on: 23rd Apr, 2009 06:33 am
I agree George. While I am not entirely opposed to keeping lines of communication open between the lender and appraiser, there were way too many instances where the line was clearly crossed. Appraisers were coerced and bribed to create false and misleading valuations.

The new guidelines were a result of an agreement between Fannie Mae, Freddie Mac, the OFHEO (now the FHFA), and NY Attorney General, Andrew Cuomo. Under the agreement, Fannie and Freddie agreed to establish these new guidelines in exchange for the NY Attorney General to drop financial investigations of both Fannie and Freddie.

The result is now the Home Valuation Code of Conduct (HVCC), where all loan production staff or other parties directly involved in the transaction, are removed from the appraisal ordering process. Now the broker can submit the loan package to the lender and an independent agent of the lender will select the appraiser, whether internally or the use of an appraisal management company.

Personally, I can't say I completely disagree with the terms, at least for the sake of the intent, but I will have to say that I will miss the many business relationships I have had in the past and I am not looking forward to working with Appraisal Management Companies as a primary source of business. It seems a shame that as a result of a few bad apples, the pie is ruined. (I know the saying, but I just really like pie)

Best of luck to you all!
Posted on: 27th Apr, 2009 01:59 pm
amen to the pie loving! my mother baked all the time and that spoiled me forever. oh well.

yes, indeed, the relationships we have forged with our appraiser friends are on a stringy lifeline, but that's no reason for us to not continue to be business associates. i have no plans to ever squeeze anyone for a value - never have - but i don't think we have to be completely incommunicative. i know my friends in business will be upset if i turn my back on them; and vice versa.
Posted on: 27th Apr, 2009 02:10 pm
The good news is that it only applies to conventional loans destined for Fannie and Freddie. It still does not apply to FHA. However, I could see this becoming a lender requirement over a short period of time because it may not make financial sense to have two appraisal protocols running simultaneous. In the mean time, I am still looking for some orders from you George!
Posted on: 27th Apr, 2009 02:18 pm
let me get some GA loans, and i'll be happy to do so!
Posted on: 27th Apr, 2009 02:19 pm
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