June 24th, 2009 8:05 PM

As Lenders we're having to add extra internal tasks for our team to handle, as brokers you're having to put nearly your entire loan decision at the whim of the appraiser whom you've never likely worked with.

For all of us the quality of work has noticeably deteriorated and it's very clear that these appraisers and not the ones that should be left with the lion's share of the work.

Of course our most favored appraisers are typically the most experienced and they have all flipped the you know what to the AMC's as the compensation for work is ridiculously low (can you say 60% pay-cut?)

Well, despite all of the issues and all of our nightly praying at bedside for the removal of HVCC we have to deal with what we've been given.

First Some Petitions to Remove the HVCC:

HVCC Petition - Written by TBWS.com

HVCC Petition - from 2008 - Written by broker

HVCC Petition Sponsored by CAMB

I've pulled some highlights out for you all to better manage your AMC ordered appraisals. These are from my company's experiences but I can't imagine they are any different (or at least not much) elsewhere.

So, some tips:

Appraisal Ordering Process - Completion

Do not wait to order your appraisal after you've submitted or until the day you submit.

Completion time for AMC appraisal? Anywhere from 5-10 business days.

Have a Purchase? Order the appraisal as soon as you have a ratified contract.

Refinance: as soon as you submit your loan order the appraisal, or if you advance lock, order on the same day as lock. You don't want to get caught with lock extensions because of delays outside of your and your lending partner's control.

Please note: The order will not be processed until payment has been made. Ie. There are no more COD's under the Code - it is a violation

Be sure to use: your Lending partner's loan number (in this case it would be us :) ).

You may not request a specific appraiser for your work (ie your favorite signed up with the selected AMC): This also violates HVCC Code.

Condition Clearing on AMC appraisal -

To be sure the work that is coming in is less than stellar. In many cases it is just plain shoddy. That of course means that your Lending partners will likely have Appraisal Conditions required.

How do they get handled?

You can take a deep breath because our underwriters, at the time they place the appraisal conditions on the approval will also be placing the request for condition completion with the specific AMC that delivered the work.

You will be able to see all of these requests online through RealEC by opening your work number.

The process for identifying the appraisal fee is as follows:

1.     Broker performs a search in RealEC and locates the loan.

2.     Click the transaction # in the upper left corner highlighted in blue taking you to the Order Summary page -

3.     Look in Event History for Event 342 - if there, click "View Event Details" located in small blue print above the Event History/Notification tabs -

4.     On this the Event Detail Page scroll down to locate Event 342 which will include the Amount collected

On the screen below you can see there is Event: Payment Information Processed Event 342 and the Amount in this case was $380.00

I need to yell at someone to get this work done faster? - well, don't yell, although I am sure you want to:

RealEC Tech Support: 877-273-2532

LSI Customer Service: 800-722-0300

Service Link:                  800-777-8759

After the Order has been Placed?

Q. Will I be notified of any action I may need to take due to an error, for example an incorrect credit card or property contact information?

A. Yes.  An e-mail will be sent to you identifying an action required on your part IF you have completed the "Add Notify" information found on the Order Summary for each individual order you place.  (Instructions for the "Add Notify Function" can be found in the Appraisal Management Quick Reference Guide.)  Additionally, following the status of orders through RealEC's system will provide you with continued updates on each order.

Here's a link on how to add e-mails to your order request:

Adding e-mails for status updates in RealEC

I need to make some changes to my initial Order?

If you want to add info like a correct credit card # then you log in and search for your loan.  Click on Transaction ID # and then select ADD EVENT and there you can add info.

What about the Appraisal Disclosure?

Q.  If we receive the initial Appraisal Disclosure form and the borrower later changes his/her mind about their election, how do we handle that?
A.  Once the borrower has made their election, no changes to that election will be accepted.  We do not want borrowers being pressured into waiving their three (3) day right at a later time so the loan can close early, etc.  The borrower's initial selection will be the governing selection.  Common sense would also tell you that if the borrower DID waive their right to the three (3) day requirement, and then decided they want the three days to review the appraisal, they should be allowed that three day review period.

How about alternate Property Decisions in DU?

Q.  Is a 2075 required to go through this process? (Updated 6/9/2009.)

A.  Since a 2075 is a property inspection report and no value is being assigned, it is not required to be ordered through our appraisal management process.

Portability (taking the appraisal elsewhere):

Q. Will your company transfer an appraisal to another lender?

A. my company will provide written assurance and allow an appraisal to be transferred upon request from another lender for any loan my company denies or for any loan submitted that was not a product offered by my company. Process requirements for transferring appraisals will be provided soon.

What about the Pesky Application date issue? Surely you've got some credit reports and apps lying about from before May 1^st?

Q.  When is compliance with the Home Valuation Code of Conduct (HVCC) required?

A.  Applications dated on or after May 1, 2009 are required to be in compliance with the Code.  Appraisals for loans delivered to FAMC must be ordered through our appraisal management process for all applications dated on and after that date.

And this was provided by Fannie Mae:

There have been numerous questions from our customers regarding the application date for purposes of determining required compliance with the HVCC.  Fannie Mae Q & A specifically addresses this question and answers as follows:

Q. Is the Definition of Application Date the Actual date of the application or the date of receipt of the application by the lender?

A. The Application date is defined as the date the borrower(s) signed the application certifying that the information is correct.

FNMA's definition of APPLICATION DATE with regards to the HVCC requirements. It is the actual date the borrower signs/dates the 1003.  A closed loan with an incorrect date is unsalable and incurable.

Scenario #1:

Borrower's application taken by phone on April 16^th, signed and dated by the Loan Officer on the 16^th.

Borrower signs on May 5. 

This loan must have an HVCC complaint appraisal because borrower's signature on the application is after May 1^st

Scenario #2:

Borrower's application is taken by phone on April 16^th, signed and dated by Loan Officer on the 16^th.

Borrower does not sign the initial 1003, however signs the Final

1003 at Closing on June 15^th.

This loan must have an HVCC complaint appraisal because borrower's signature on the application is after May 1^st.

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