This REO list will be your guide to rebuilding your real estate career in a depressed market. We both know the market has changed and now it is time for you to change with it. Redefine your objectives and start contacting asset managers who liquidate bank owned properties and assign listings.
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On May 1, 2009, a new set of rules regarding the processing of appraisals for Fannie Mae and Freddie Mac loans went into effect. The Home Valuation Code of Conduct, or HVCC as it is known, was intended to curb fraudulent mortgages.
This new code was in response to an investigation conducted by Andrew Cuomo (the Attorney General for New York) into the appraisal practices of Fannie Mae and Freddie Mac (GSEs or Government Sponsored Entities). Basically, Attorney General Cuomo agreed to stop the investigation if Fannie Mae and Freddie Mac would change their appraisal process.
The HVCC is an effort to clean up the mortgage industry. Although there are many good initiatives in this new code, there are many unintended consequences adversely affecting home buyers, home sellers, mortgage brokers, agents and appraisers.
The HVCC affects those people in the loan process that are compensated on a commission basis. Once a loan closes, mortgage brokers, loan officers and real estate agents and brokers are paid their commissions. These people are no longer allowed to communicate in any way with the appraiser assigned to their property. The problem is that many loan officers, brokers, real estate agents and brokers have spent many years developing business relationships with certain appraisers because of their professionalism, timeliness and superior quality of work. Now, these relationships are no longer useful.
Instead of choosing appraisers based on their depth of knowledge about certain market areas, appraisers must now be chosen from a preapproved list or from and Appraisal Management Company.
This new code was in response to an investigation conducted by Andrew Cuomo (the Attorney General for New York) into the appraisal practices of Fannie Mae and Freddie Mac (GSEs or Government Sponsored Entities). Basically, Attorney General Cuomo agreed to stop the investigation if Fannie Mae and Freddie Mac would change their appraisal process.
The HVCC is an effort to clean up the mortgage industry. Although there are many good initiatives in this new code, there are many unintended consequences adversely affecting home buyers, home sellers, mortgage brokers, agents and appraisers.
The HVCC affects those people in the loan process that are compensated on a commission basis. Once a loan closes, mortgage brokers, loan officers and real estate agents and brokers are paid their commissions. These people are no longer allowed to communicate in any way with the appraiser assigned to their property. The problem is that many loan officers, brokers, real estate agents and brokers have spent many years developing business relationships with certain appraisers because of their professionalism, timeliness and superior quality of work. Now, these relationships are no longer useful.
Instead of choosing appraisers based on their depth of knowledge about certain market areas, appraisers must now be chosen from a preapproved list or from and Appraisal Management Company.
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When an appraisal is ordered, the appraiser puts the report in the name of the lender making the request. If the lender is changed, a new appraisal must be requested in the new lender's name which increases the costs to the buyer and the time to close. A buyer may be hesitant to change a lender with whom they are dissatisfied because of the potential increase in costs and time. If the buyer has a rate lock, they may need to extend the lock for longer periods of time.
Most sellers are not in a position to reduce the sales price of their home to accommodate a low ball appraisal, so the contract falls apart. Consequently, a seller's only option is to appeal the low appraisal. May's statistics for new and existing home sales were up, but still fell short of market expectations. The National Federation of Mortgage Professionals, The National Association of Realtors and The National Association of Home Builders are pointing to issues with the Home Valuation Code of Conduct for this shortfall.
Appraisers are now the only industry with restrictions prohibiting communication with their customers. Remember, appraisers may not communicate with agents, loan officers, mortgage brokers or real estate brokers because they are paid on commission. Just as real estate agents pay a portion of their commission to their brokers, appraisers are required to pay approximately 40% of their income to the Appraisal Management Company with whom they work. These restrictions on communication and compensation could drive many experience appraisers out of the market and a time when we can least afford it.
Most sellers are not in a position to reduce the sales price of their home to accommodate a low ball appraisal, so the contract falls apart. Consequently, a seller's only option is to appeal the low appraisal. May's statistics for new and existing home sales were up, but still fell short of market expectations. The National Federation of Mortgage Professionals, The National Association of Realtors and The National Association of Home Builders are pointing to issues with the Home Valuation Code of Conduct for this shortfall.
Appraisers are now the only industry with restrictions prohibiting communication with their customers. Remember, appraisers may not communicate with agents, loan officers, mortgage brokers or real estate brokers because they are paid on commission. Just as real estate agents pay a portion of their commission to their brokers, appraisers are required to pay approximately 40% of their income to the Appraisal Management Company with whom they work. These restrictions on communication and compensation could drive many experience appraisers out of the market and a time when we can least afford it.
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Using "The Most SAFE, PROVEN, RISK FREE Real Estate System for Today!" Guaranteed.
This is NOT like the many "teaser" courses that just get you excited about investing.
The following program stands on its own with the FULL ARSENAL OF TOOLS you WILL NOT find in any other such online programs.
Check it out for yourself...