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Napa Valley Valuation BLOG

HVCC - Realtors Strike Back

June 25th, 2009 3:23 PM

By Daniel Brauning

I have been saying since the inception of the HVCC that when the Realtors couldn't get their deals done because of the HVCC, then and only then, would the HVCC be rescinded.

Realtors have the biggest stakes (commission) in a transaction. In addition, they are the largest member organization with a lobby in Washington DC. When alot of Realtors have the same impasse to closing a transaction, they will have the best results at solving the problem!

I had estimated that it would take 90 days from May 1st for the Realtors have done away with the HVCC. I am still betting on that. From the tone of NAR President Mr. McMillan's announcement (see below) and his schedule of upcoming meetings, I think I might be right (for once).

30 more days to go!

To: All REALTORS®

From: Charles McMillan, 2009 NAR President

Re: Appraisals

Dear Fellow REALTOR®,

During the past two months, we have heard from many of you regarding problems with appraisals that are causing deals to be delayed or canceled altogether. I assure you that we on the NAR Leadership Team are experiencing the same problems in our businesses. In fact, VP & Liaison to Committees Steve Brown recently shared his experiences in Ohio on the Voices of Real Estate blog.
http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html

Let me update you on what NAR is doing to resolve these problems quickly.

On Monday, June 29th, I will be in New York to meet with the Deputy Attorney General and his staff who worked directly on the Home Valuation Code of Conduct. I plan to share our concerns, as well as your stories, and ask for their assistance in resolving any problems related to the HVCC.

On Tuesday, June 30th, I will travel to Washington, D.C., to meet with the Director of the Federal Housing Finance Agency to discuss ways we can work with Fannie Mae, Freddie Mac and lenders to ensure that appraisals are accurate.

We will keep you posted on the outcome of these meetings. In the meantime, I encourage you to check out the following resources on Realtor.org for more information on the HVCC and how appraisal problems are impacting the real estate market:

Posted by Leon Brauning on June 25th, 2009 3:23 PMPost a Comment (0)

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Change and Ethics

June 26th, 2009 1:37 PM

By John McFarland

It is obvious to one and all the US economy is experiencing the worst recession since the Great Depression Era of the 1930s. And much of the blame for this crisis must fall on the shoulders of the Real Estate industry. Scrupulous and unscrupulous lenders alike fell under the spell of making huge profits without bothering to provide themselves with a safety net. And in there rush to make deals, any deals whether they made economic sense or not, they helped to crate a pattern of inflation in real estate prices that made no sense what-so-ever and could not possibly be maintained.

Pressure was placed on Real Estate Appraisers to "hit a predetermined value" or lose out on the assignment. Although totally in violation to our professional code of ethics, and illegal, many Appraisers faced the choice of "play the game" or don’t eat. And when the bubble finally burst, it was the Appraisers, and all to often justifiably so, who took much of the blame.

The irony of this whole scenario is that all too often, after being placed in the position of being the first to fall, too many Appraisers were never paid for their work. Unfortunately, I too had to learn the hard way that the ethics of my father’s time can rarely be found today.

Thus, to all Appraisers reading this blurb, my advice is as follows:

1 - Deal only with reputable lends with a proven track record of sound lending practices.

2 - Get all agreements and contracts in writing.

3 - Request full payment up front whenever possible and never, never deliver a report until you have been paid in full.

4 - Never, under any circumstances take on an assignment with a preset value conclusion. Not if you place any value on your reputation of your license. Stay ethical in all aspects of your chosen profession. And never forget that what you do reflects back on us all.

And to any potential customer:

Expect to be asked for payment in advance. You didn’t buy your ticket to a movie on your way out of the theater.

Posted by Leon Brauning on June 26th, 2009 1:37 PMPost a Comment (0)

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