Franklin Financial Group Blog Effects of Consumers of the Home Valuation Code of Conduct February 20th, 2009 9:10 AM When the Home Valuation Code of Conduct (HVCC) goes into effect, appraisals for a loan will have to be ordered by the lender, not a mortgage broker if they are involved with the transaction. The idea behind this is certainly that the process will eliminate the potential for a mortgage broker to influence the appraised value that could increase a lender's risk for the transaction. I believe the result of this will hurt, more than help things in the marketplace. Many brokers have established relationships with local appraisal companies who know the areas well in which they operate, and often have agreed to provide their services at a cost lower than their competition. Eliminating the brokers' ability to continue selecting which companies will perform the appraisal service reduces competition and will certainly end up costing consumers more money per transaction. It may also end up pushing some appraisal companies out of business due to not having enough revenue to sustain operations. Additionally, it will increase the processing time for a loan to be underwritten due to having to wait longer to receive an appraisal for a loan. On every mortgage loan transaction the appraisal is submitted to and reviewed by a lender's Underwriting Department and often by an Appraisal Review Department. If one or both of these departments are reviewing the reports for each transaction, why eliminate the broker from ordering the appraisal? The system of checks and balances is already in place. This is in my opinion another way for mortgage brokers (not Lenders) to be scapegoats for the housing market conditions. It may take consumers to see the effects of the Code on their loan process and money out of their pockets, before any changes are made. I often wonder who comes up with these ideas to "fix" things. I would bet they have never been involved with the actual loan process. If they were, they would understand the errors in their thinking. Posted by Kevin Ary, President (NMLS # 4599) on February 20th, 2009 9:10 AMPost a Comment (0) * Name: * Email Address: URL: Comment: Type the characters you see in this picture, click "Submit" when finished.   This helps us prevent automated programs from posting comments and sending spam. * Name: * Email Address: Address: City: State: Zip:   This helps us prevent automated programs from creating bogus contacts and adding them to your contacts database.

Recent Posts: More on Financial Regulatory Reform Financial Regulatory Reform Bills Not the same Franklin Financial Group that is receiving bad press in Florida Mortgage brokers not out for the count Deadline approaching for 2010 Homebuyer Tax Credit USDA Rural Development Loans 2010 GFE Update 2010 New Good Faith Estimate Now In Effect 2010 RESPA Changes Are Mortgage Brokers Better Than Lenders or Mortgage Bankers? Archive: March 2007 The "Break Even Point" of No Closing Costs Loans or Mortgages Posted by Kevin Ary, President (NMLS # 4599) on March 6th, 2007 3:47 PM November 2009 Home Valuation Code of Conduct (HVCC) - It IS Costing Consumers! Posted by Kevin Ary, President (NMLS # 4599) on November 20th, 2009 9:08 AM RESPA changes to the Good Faith Estimate Posted by Kevin Ary, President (NMLS # 4599) on November 13th, 2009 9:20 AM September 2009 When Will Mortgage Rates Rise? Posted by Kevin Ary, President (NMLS # 4599) on September 25th, 2009 11:32 AM May 2009 Home Valuation Code of Conduct (HVCC) - It's going to cost consumers! Posted by Kevin Ary, President (NMLS # 4599) on May 8th, 2009 7:04 PM March 2009 Converting Second Mortgages into Investments Posted by Kevin Ary, President (NMLS # 4599) on March 13th, 2009 7:36 AM February 2009 Effects of Consumers of the Home Valuation Code of Conduct Posted by Kevin Ary, President (NMLS # 4599) on February 20th, 2009 9:10 AM January 2009 Refinancing into a lower rate and/or longer term mortgage Posted by Kevin Ary, President (NMLS # 4599) on January 23rd, 2009 3:22 PM December 2008 Government-Imposed Mortgage Rates of 4.5% Posted by Kevin Ary, President (NMLS # 4599) on December 19th, 2008 8:12 AM October 2008 Future of the Mortgage Industry Posted by Kevin Ary, President (NMLS # 4599) on October 3rd, 2008 9:07 AM July 2008 Should You Lock In Your Interest Rate or Float? Posted by Kevin Ary, President (NMLS # 4599) on July 11th, 2008 7:01 AM May 2008 Down Payment Required On Purchase Transactions Posted by Kevin Ary, President (NMLS # 4599) on May 18th, 2008 12:07 PM April 2008 Being "Above the Line" Posted by Kevin Ary, President (NMLS # 4599) on April 12th, 2008 6:56 AM Lending Integrity NAMB Member Posted by Kevin Ary, President (NMLS # 4599) on April 9th, 2008 3:11 AM February 2008 Identity Theft - It's not a matter of "IF" but a matter of "WHEN" it will happen to you. Posted by Kevin Ary, President (NMLS # 4599) on February 29th, 2008 7:50 AM The Fed Reduces Rates Twice in 30 Days Posted by Kevin Ary, President (NMLS # 4599) on February 4th, 2008 4:22 PM January 2008 2008 Starts Off With Some Activity Posted by Kevin Ary, President (NMLS # 4599) on January 16th, 2008 11:34 AM Consolidation/Merging of Lenders Continues Posted by Kevin Ary, President (NMLS # 4599) on January 11th, 2008 4:48 PM December 2007 Become Mortgage Free in Less Than Half the Time! Posted by Kevin Ary, President (NMLS # 4599) on December 19th, 2007 5:08 PM November 2007 Not everything is all Gloom and Doom! Posted by Kevin Ary, President (NMLS # 4599) on November 6th, 2007 3:00 PM September 2007 Mortgage Brokers services are extremely valuable during these tough times Posted by Kevin Ary, President (NMLS # 4599) on September 28th, 2007 12:41 AM August 2007 Mortgage Industry Going Through Dramatic Changes Posted by Kevin Ary, President (NMLS # 4599) on August 9th, 2007 11:51 AM June 2007 Becoming a Better Buyer Posted by Kevin Ary, President (NMLS # 4599) on June 4th, 2007 11:18 AM November 2009 (2) September 2009 (1) May 2009 (1) March 2009 (1) February 2009 (1) January 2009 (1) December 2008 (1) October 2008 (1) July 2008 (1) May 2008 (1) April 2008 (2) February 2008 (2) January 2008 (2) December 2007 (1) November 2007 (1) September 2007 (1) August 2007 (1) June 2007 (1) March 2007 (1) My Favorite Blogs: Sites That Link to This Blog: Huntsville Alabama Real Estate / Philip Winburn / Rosenblum Realty Inc. Judy Pipkin - Keller Williams Realty OurHouseForRent OwnerLand Realty

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