My New Blog

A Bill has been introduced recommending a moratorium on the HVCC code.  It appears that the governement is finally understanding that they may have caused more problems then they eliminated.   Unfortunately, many of the AMC's are giving work to the lowest bidding appraisers.  This is causing the least experienced (who will work for low pay) appraisers to do the majority of appraisal work.  Also, appraisers are taking jobs outside of there  local area.   All Good appraisers know that you can not sustain a business and provide quality appraisals (which everyone wants) for half of the typical fee. I am a Realtor and an Appraiser so have experienced this first hand.  I had a sale, and the appraisal process (time delays and bad quality) almost ruined my deal.   The spirit of HVCC is good, but the reality is not working.  The rules were already in place for appraisers (USPAP) before HVCC.  They should have just spend some time enforcing the current rules!!!!  Good appraisers are being run out of business in favor of low quality low cost appraisers.  This is crazy.  Maybe everyone should bid there medical problems out to the lowest cost least experienced doctors.   We could have brain surgery from people with no experience.  (at least if would be cheap)  lol

This is a good resource for the latest about HVCC..

www.Efanniemae.com

If you have noticed appraisal fees going up on the HUD-1's, look directly at the HVCC and use of AMC's for the reason.   Appraisal companies are charging $150 fees on top of appraiser fees for brokering the order.  For example;

A typical appraisal fee is $375.  This should be the true cost to the client.

When an AMC gets involved in the order, they squeeze the appraiser for discounted fees, and then charge a large service fee on top of it. 

For example;

  If an appraiser gives the AMC a discounted price (too low to stay in business) of $300, then the AMC will add there $150 fee for doing nothing for a total cost to the client of $450.    This is $75 extra cost to the client for no additional benefit. 

This great system of HVCC and the use of AMC's needs to be eliminated or regulated.  You will notice that the AMC's do not disclose what they are paying for the appraisals.  This should be against the law!!! 

Until then, don't complain to the appraisers about the high fees.  Our fees have not gone up in 10 Years.   They have actually been forced down. 

You can prevent this problem at you company by ordering directly from the appraisers.  HVCC does not require the use of AMC's.  This is just something that the AMC's want people to believe.  If you look at the HVCC myth vs Reality blog, you will see they are not required at all.

Save your client money and get better service by engaging appraisers directly.  HVCC does not apply to any FHA deals.  Also, you can you an in house ordering group that can be set up to order directly and eliminate the need for AMC's. 

The clients that I have that do not use AMC's are having less appraisal issues, and costs are lower and they are happy!  I here nothing but complaints from company's using AMC's.  I know this because I am a Realtor and an Appraiser and have had 1st hand experience.