FIGHTING THE NEW APPRAISAL RULES A Swamplot reader draws attention to a “rumored email” purporting to show that the National Association of Realtors is gearing up for a campaign against the Housing Valuation Code of Conduct that went into effect at the beginning of May. The HVCC was meant to safeguard the independence of appraisals — in part by prohibiting loan officers, mortgage brokers, and real estate agents from selecting the appraiser for a particular property. The email, posted on a San Fernando Valley real-estate blog, indicates that the NAR is pushing Congress to impose an 18-month moratorium on the new code. Our reader wonders if recent stories of “unfair appraisals” — such as this one — are the result of a larger “orchestrated campaign” against the new rules. [Effective Demand; Swamplot inbox]
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Having recently refinanced my home, I can speak to this situation.
The mortgage broker I used hired the appraiser. The appraiser (nice guy) appraised my house at $210k. My purchase price 4.5 years ago was $183k. HCAD has it at $185k. How in the hell was my house appraised that much more just a few months ago?
The benefit to me is that helps in lowering the rate. The lending institution was based in Mississippi. They don’t know really anything about my house other than what the appraiser told them. So the mortgage broker can essentially construct the loan application to make the lending institution like it.
I think these rules are being pushed by the banks so that they are likely to get a better appraised value and not as easily be able to release funds.
Kjb,
we dont agree on everyting, but you are on to something here!
there is alot of web traffic on the matter.
http://www.ritholtz.com/blog/2009/06/existing-homes-sales-fall-36/
The HVCC was meant to safeguard the independence of appraisals — in part by prohibiting loan officers, mortgage brokers, and real estate agents from selecting the appraiser for a particular property.
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It keeps sleazy realtors and sleazy loan officers, sometimes one in the same, from getting a buddy to “overvalue” a house.
Quite a few banks as well as individual investors who bought the loans from the lenders have discovered, most people don’t seem to understand that their loan is usually sold to someone else by their “mortgage company” before they even get to the closing table, as they wade through the ever-increasing stacks of non-income producing mortgages, that the homes were overvalued.
But not to worry. No doubt quite a few tax districts around the country will probably join NAR in protesting the new code.