The HVCC was designed to ensure that the appraisals that are done for purchases and refinances are done in a matter that they're in no way influenced by any party involved. In the past, most brokers would develop relationships with appraisers that worked in their general area and had proven to be timely, accurate, and professional. Now, the broker has to order the appraisal through the lender who has a list of approved appraisers which it blindly chooses from. The appraiser makes the appointment with the borrower, and when complete, the appraiser gets transmitted to the lender; the broker and borrower are the last to see the estimated value of the home. The idea behind this process shift is to put more room between the broker and the appraiser; even though completely illegal, the Govt. wants to make doubly sure that there's no cooperation between the appraiser and the broker to make the property meet certain value requirements. Below are some more caveats of this new system:
The appraisal and selection of the appraiser will be ordered by someone not directly involved in the origination of the mortgage. This could be either someone else within the mortgage company or a third-party appraisal management company.
A copy of the appraisal must be provided to the home buyer/borrower no less than three days before closing.
The minimum time expectations for receipt of the appraisal should be a few weeks and not days. (While receipt of the appraisal may be received in shorter time frames, conservative expectations are warranted.)
Communication between the appraiser and the originating mortgage professional is prohibited. It is imperative that the agents involved in the transaction be prepared at the time of inspection to offer supporting value information if warranted.
This is a positive process change for consumers; it provides a much more fair appraisal of the property. Managing your long term financial goals requires accurate figures - how can you expect people to properly weigh the benefit of their equity if the appraised value is incorrect. More regulation was bound to emerge from this housing meltdown - we're only at the beginning of the reform. A few things to think about as you proceed with your transaction.
1. You'll be providing $ upfront for the transaction. The cost of the appraisals has gone up slightly - you should be expecting a fee from $350-$425. This is mainly due to the formation of third-party infrastructure to handle this new process.
2. There's no guarantee that the appraiser assigned to your particular case, will be knowledgeable about the area where your home is located. This could either work in your favor, or very much against it.
3. There could, although it's not very common, delays in the process. Because your loan officer's contact with the appraiser has been cut, there may be nothing we can do to speed up the process.
Overall, there's really nothing to worry about- although new, this process seems to be going smoothly. If you have any questions or comments, please contact us. request@integritylender.com
The HVCC was designed to ensure that the appraisals that are done for purchases and refinances are done in a matter that they're in no way influenced by any party involved. In the past, most brokers would develop relationships with appraisers that worked in their general area and had proven to be timely, accurate, and professional. Now, the broker has to order the appraisal through the lender who has a list of approved appraisers which it blindly chooses from. The appraiser makes the appointment with the borrower, and when complete, the appraiser gets transmitted to the lender; the broker and borrower are the last to see the estimated value of the home. The idea behind this process shift is to put more room between the broker and the appraiser; even though completely illegal, the Govt. wants to make doubly sure that there's no cooperation between the appraiser and the broker to make the property meet certain value requirements. Below are some more caveats of this new system:
