Appraisal Management Companies and You
Any increase in cost of obtaining a loan, affects you and there is now a cause for alarm.. IIn order to plug some of the holes in lending practices, management companies have been set up to manage the appraisers. The management company would assign appraisers and collect the fees. Part of the fee would go to the appraiser and a larger portion to the management company. It sounds like normal business in america but how does it affect you?
The national association of mortgage brokers conservatively estimate it will cost the consumer 2.9 billion in loan lock extensions and higher appraisal cost.
The management companies are by and large unregulated. What does that tell your? How is fraud eliminated?
If you find a better deal from a Lender and the appraisal is already done, tough pay for another one.
Appraisers are paid lower fees whcih may mean you may not get an experienced appraiser. Remember you get what you pay for.
Oh did I mention, regardless of any of the above, higher cost to you for the appraisal?.
This entire management company set up is recent but if you have purchased a home recently and experienced increase cost, share. The National Association of Mortgage Brokers are accepting specific, tangible evidence of how you have been affected. You may submit your story to hvcc@namb.org explaining the problem. HVCC stands for Home Valuation Code of Conduct.
Some articles on the subject
1.The Appraisal Bubble-The center for Public Integrity http://www.publicintegrity.org/investigations/luap/articles/entry/1264
2. The Cure is Worse than the Disease-Appraisal Press- http://www.appraisalpress.com/news/articles/hvcc_the_cure_is_worse_than_the_disease
3. Appraisals Roll Real Estate Deals - The Wall Street Journal-http://online.wsj.com/article/SB124450388959795613.html?mod=djkeyword
If you are moved to action contact the following;
Federal Housing Finance Agency (FHFA) (866 796-5595 director@fhfa.gov
Fannie Mae: (202) 752-7000, headquarters@fanniemae.com
Freddie Mac (703) 903-2000 Internet complaint-http://www.freddiemac.com/corporate/about/feedback.html
Senators, Representatives and Govenors-http://capwiz.com/namb/dbq/officials/
Also your local TV and Newspaper outlets.