It’s a new HVCC day and I am not 100% sure about anything… To prepare for HVCC, we had made an effort to ensure that all of our clients were HVCC compliant with third party processing, but post-May 1st, they are not being allowed to use their processing!

Can You Believe It?

Most Mortgage Brokers found out from their lender capital source that they would not be able to use their existing appraisers, but that they would now have to use whomever the LC used. In most of these cases, that meant an AMC, and possibly even an LC owned AMC!

Yes, there is less pressure for valuation, but there are also seriously horrific side effects that we have yet to see...

For instance, it no longer matters how you do your job, because it is all on a rotation. HVCC takes away pressure by lenders, but it also takes away the possibility of getting more work. Under HVCC you cannot be selected, regardless of how good a job you do. HVCC has deincentivised the whole appraisal process.

Another downside is that competency, specifically jurisdictional competency, and experience are things of the past. Say goodbye to the days where the most qualified or experienced appraiser got the work, now the lenders can’t choose, so newcomers are doing geodesic domes.

Not that I want to do geo domes; but this mean less work for experienced appraisers. And I am not sure if it will ever come back... Even if NAR and NAMB get an injunction to stop HVCC, most lenders are already on board with an AMC. Can we get the cat back into the bag?

Both NAR and NAMB are fighting the HVCC from the perspective that it is “costing the public” unjustified amounts for their appraisals. Bottom line, less money for all realtors and mortgage brokers.

I don’t know the solution, but I know HVCC is not it.

Your thoughts or comments?