Mortgage Blog

HVCC started May 1st,2009, almost nobody(except the banks
and AMC) likes it, but we still have to embrace it.

Here is the some of the problems with this HVCC.
1)Poor Portablity.
Usually we can share the appraisal with multiple lenders.
Now, we have to decide which lender we will send the loan
before the appraisal.If we double submit, we will have to
order multiple appraisals.

2)Inconsistency.
The interpretation of the value is so different from the
appraisers.

3)Longer Turn Around Time.
We got one report three weeks after the initial order.
This make it so hard to decide when to lock the rates. It
improves a little bit now.

4)Higher Fees.
The appraisal fees are about $100 higher than we used to
pay because we have a middle man -- AMC(Appraisal Management
Company) Now.

5)Geographic Competency.
We have some bay area reports completed by Sacramento or
Merced Appraisers; San Diego appraisals completed by LA
appraisers. Those appraisers just want to make the money,
but they don't know the area; so the value is totally
different; it created a lot of disputes and angry borrowers.

6)Poor Quality.
When the appraisers are only responsible to the AMC, not
the borrowers; when the schedule is busy, and they have to
rush for a report; when they don't the area well, the
quality of the report is poor. Recently, I got a report
with the square footage 10% less than the county records
(at least they will check and measure it correctly).

Though thus many problems, we did see the improvements in
the last 3 months,and we did see bad appraisers kicked out,
and the service getting better.

But we have some other advantages.
1)No pressure of the value.
The realtor usually think the value should be higher. We
don't have the pressure of the value any more since it's
independent.

2)Cut Down the Frauds.
When the loan originators are not allowed to choose and
contact with the appraisers,the possibility of fraud is
reduced.