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HVCC SUPPORT

The HVCC became effective May 1, 2009 preventing mortgage brokers from using their "local appraisers".

Intended to provide a "firewall" between the lender and the appraiser in an attempt to remove coercion of valuation, what is actually happening is that BIG BANKS (who do not have to comply with this provision can continue to use their "in house" and "staff" appraisers) are attempting to put your trusted financial advisor at a disadvantage in the market. The part of the process where you (the borrower) need to know if you will have enough equity to refinance is being sourced out to a random appraiser assigned by the Appraisal Management Company (AMC). No longer can your financial advisor rely on his/her trusted, proven, local valuation professionals.

The "AMC" is third party profit center which has a roster of appraisers that have been "approved" and are randomly assigned by either rotation, internal "rating" system or just luck. You will pay a fee that is often twice what the appraiser will be paid, and there is no assurance that your appraiser has knowledge, expertise or sufficient data to properly appraise in your market area. Hopefully this will be a short lived situation in which the Consumers (you), the mortgage brokers and the independent appraisers are mandated to bear the burden of the lending crisis situation and the BIG BANKS are allowed this industry advantage.

Obviously this is a poor solution to the problem, and places you at a disadvantage. Carlson Appraisal is providing "HVCC Support" in the form of an Appraisal Consulting assignment to provide support in situations where you might feel that your "assigned appraiser" may need some assistance.

For example, your mortgage broker's lender, AMC or BIG BANK assigns your appraiser. When they call you to set an inspection appointment you might ask "where are you coming from" or look up their name on the OREA website (Office of Real Estate Appraisers) www.orea.gov and determine whether you feel they might be sufficiently familiar with your market area. If not, contact Carlson Appraisal before your appraisal appointment and we will come do a visual inspection (so that we see what your assigned appraiser will see) and provide a list of suggested comparables (3 closed sales and 2 active/pending listings with MLS listing information) that you can opt to present to your appraiser when they arrive. Obviously, no value opinion will be provided as that will be the assigned appraisers job, but you and Carlson Appraisal might have local knowledge that this appraiser might appreciate if they are from out of the area. Some areas have their own MLS (such as the Ojai Valley) and often these appraisers don't subscribe to the local MLS and rely on the limited data available on a "MLS Alliance", public record or even "Realtor.com". Our fee for the inspection and an emailed comparable property MLS listing link is $150.00 depending on the complexity of your market area, and whether a reliable measure of your square footage is available.

I feel confident that the HVCC and the problems it has caused will be remedied sooner or later, and until it is please know that there is an offer of assistance available.

Best regards,

Sherry Carlson