The government isn’t in the habit of giving away money to the average citizen who doesn’t have exotic tax loopholes, but anyone thinking about purchasing a house should contact a Realtor and begin looking as soon as possible.  It could be worth up to $8,000 to you.  The tax credits expire April 30.

    First time home buyers are eligible for up to $8,000 or 10% of the market value of the home.  Qualified repeat homeowners are eligible for up to $6,500.  Contracts must be executed by April 30 and closed escrow by June 30, 2010.

   What does this mean to you?  Depending upon where you live and the laws governing real property of your state, the speed with which your lender can act, and the timeliness of your Realtor, purchasing a house from start to finish can be done in as little as a week for a cash buyer, to two months for a buyer using financing. 

   Sitting down with a Realtor should be priority one.  He or she can guide you to a lender who will be responsive to your needs, and a lender who knows and understands the area in which you plan to purchase a property.  Internet  lenders have no idea about the peculiarities of individual areas; using a local lender is always the best choice.  Any problem can usually be resolved fast and competently.

    The lender will ask for all types of documentation and the faster the buyer provides this, the sooner the loan commitment can be made.  While this is transpiring, the Realtor and the buyer can determine criteria  and begin looking.  Finding a property can be accomplished in a few days if buyer and Realtor work full time during that period.

    Once the property is identified and a contract written, the response from the seller may take a few hours to several days.  Because short sales often take months, purchasing a short sale and trying to come in under the April 30 deadline is self defeating.  Time must be allotted for counter offers, or possible rejection, at which point the buyer must determine whether to submit another higher offer, or begin looking again.

     Assuming the offer has been accepted, and one week has elapsed, all inspections must be done.  In Arizona, the buyer has ten days in which to complete all inspections for the property which includes any and all inspections desired by the buyer, but usually the home inspection and a termite inspection.  The request for repairs is then made to the seller who has five days in which to respond.  

     We are now more than two weeks into the process.  Be aware, the seller may opt to decline to do any repairs.  These small challenges along the way should be explained to the buyer by the Realtor.  If we began today, the process so far would take us to the first week of March. 

    The repair addendum has been negotiated and now we must tie up loose ends.  In Arizona, the Realtor will review the commitment for title and make sure there is clear title to the property, issues such as how to take title, disclaimer deeds if needed, must be completed and provided to the title company, and any special documents such as septic certifications, well certifications or Affidavits of Disclosure must be completed properly and submitted to title.

    At this point, we are probably into the end of the second week of March.  The loan officer is completing his paperwork, submitting information to underwriting, and the appraisal has been ordered.  Now it is a waiting game.  The property can probably close escrow by the end of March.  But the process has easily taken more than one month. 

     There are many people working to make sure a buyer is successful purchasing a property.  Many work behind the scenes and are an integral part of a successful transaction.  It is the Realtor’s job to make sure all function seamlessly and that the buyer understand what is transpiring every step of the way.

   Call your Realtor today so you can take advantage of the $8,000 and if you are purchasing a second home, look at the $6,500 tax credit!

     For further information or to find a Realtor near you, contact Terry at terry@terrybishop.com

Questions and Information about the Tax Credit:

http://www.federalhousingtaxcredit.com/faq1.php

    The Tucson Real Estate Market is rousing from a deep sleep and January statistics show that Tucson  properties are beginning to catch the up wave. 

    The median sales price for a home in Tucson has risen $6,000 from $154,000 in December to $160,000 in January.  This represents a 3.90% increase in value although the average listing price has decreased from $211,281 in December to $210,592 in January. a decrease of a little more than .03%.  However, the average sales price rose $3.00 from 201,216 in December to $201,219 in January.

    This is significant because many buyers closed escrow prior to November 30 so they could take advantage of the $8,000 tax credit.  Tax consequences also propelled people to close escrow on a property prior to December 31.  Pending sales are up 36.36% to 1155 properties as opposed to 847 in December.  Significantly, the pending sales increased 22.74% year over year from January 2009.  This bodes well for the Tucson market. 

    January usually sees more properties coming on the market, as is the case this year when 6,618 properties are actively listed, up from 6130 in December, but down from last January’s numbers by 12.13%.  This is a good sign for inventory.  

   The most new listings are in the Northwest with 663, also an area where there are several master planned communities where extensive building occurred during the first decade of the 2000’s.  The central area has 306 new listings, and the North which encompasses the Catalina Foothills brought 268 new listings to the marketplace.  This corresponds with the numbers of total listings for those areas:  Northwest, 1772; Central, 822; and north 713 properties on the market.

    These numbers transfer to the percentage of sales in each of the areas during January.  The Northwest accounted for 29.67% of total sales volume in January; the north accounted for 18.25% and the central area,7.55%.  These three areas accounted for sales in more than 65% of the Tucson real estate market in January.

   However, relative to the numbers of properties on the market, 27.05% of all properties listed in the south, sold.  The average sales price is lower and reflects in dollar volume.  The southwest, which also has master planned communities, had 27.05% of properties in the 85746 zip code and 21.28% of the properties listed in the 85757 zip code sold.  This includes Midvale Park area and Star Valley.  the southeast, which includes the Del Lago master planned communities had 23.65% of the listed properties sold.

   The price range which is most active is the $200,000 to $249,999 range.  A three bedroom two bath home is the most popoular model sold.

   The number of days on the market for all areas has remained steady at 73 days for November, December and January.  The majority of people are financing with a conventional loan (248) and then cash (208).  Cash buyers may include some winter visitors as well as investors.  175 buyers preferred FHA financing and 56 buyers took advantage of their VA benefits.  Buyers paid 95.55% of the list price of the home, on average.  This is the list price of the home at the time of purchase and does not reflect price reductions or changes of agents.

    A full report is available on the Tucson Association of Realtors website listed below.  Another link provided below accesses the map which delineates the various areas of the Tucson Multiple Listing service.

    if you need help searching for properties or understanding the Tucson marketplace, contact me at terry@terrybishop.com

Tucson Multiple Listing Service January statistics:

 http://www.tucsonrealtors.org/statistics.html

Tucson Multiple Listing Service area map:

http://www.tarmls.com/pdfs/areaboundaries.pdf

The average price of a home in Tucson is down less than $4,000 since a year ago, but up more than $2,000 from November.  The average housing price, at $202,376, in Tucson is comparable to prices at the end of 2003 and the first quarter of 2004.  Likewise the median price is down from $163,000 in January 2009 to $154,262 in December, which again reflected first quarter 2004 pricing.

Looking at 2009 the numbers are:

   yearly-statistics4- (Please open for yearly statistics - click “Notify” and the page should open)

The greatest number of properties sold in the 85757 zip code where Star Valley is located as well as several other new home communities built during the boom.   A total of 42.22% of the listed  properties on the market sold. 

35.83 per cent of the properties listed in 85706 zip code sold;  an area roughly bordered by Irvington Road to the north, south to Valencia, a bit east of I-19 to just east of Benson Highway.  The area, 85746, which encompasses Ajo to the north, including the Tohono O’Odham nation, south to Pima Mine Road,  west of I-19 and east of Sandario Road, had 32.87% of active listings sold.  This includes the Midvale/Mission Road area where many homes were built in the 1980’s and later.

The area where properties are selling most rapidly is considered southwest Tucson.  Ironically beyond Sandario only 6.90% of the homes have sold, but this is also know as the Brawley Wash area and includes Three Points, aka Robles Junction. 

The greatest number of homes on the market are in Oro Valley in the 85755 zip with 244, and in the 85737 zip with 237 homes. Also in the Northwest, 85739 which includes Saddlebrook Active /Adult Community, 244 homes are on the market.

 The Catalina Foothills in 85718 has 296 homes on the market, and 85750, also foothills has 284.  Much of this is considered District 16.  Looking southeast into the Vail area which includes Rancho Del Lago, another master planned community built in the mid 2000’s, 304 homes are on the market. 

Tax credits are still available and bond money for foreclosed homes is also available, with some restrictions.  Interest rates remain low and FHA requires only 3.5% down.  In some instances, with lender own properties, there may be help for buyers to purchase foreclosed homes. 

Talk with your Realtor and ask what is out there for financing as well as what types of homes are available in your price range.  Your Realtor is there to help you.  Or you can call me or e mail me at terry@terrybishop.com for professional assistance.

Resources: Tucson Association of Realtors Monthly Housing Statistics:

http://www.tucsonrealtors.org/statistics.html

So what about the nasty little pesky association fees which can add anywhere from $20 to your monthly payment to upwards to $300 or more.  Most master planned communities have association fees as do many Active Adult communities, and of course gated communities.

When purchasing a property, remember that Association Fees go up, they very very rarely come down.  Every $6.00 at a 6% interest rate for 30 years can buy another $1,000 in property.  So if the Association fee is $180 a month, a home $30,000 more than the home being considered -without an association fee - costs the same amount.

People often want the convenience and ammenities of a home which has an Association fee.   But there are others, such as home owners who purchase to have a property to go to in the winter months, who may not want to pay an association fee year round.  For the price of the Association fee, a gardener can be hired, and remember, here in Tucson, we don’t mow grass, we rake rocks.  Hiring someone to come by once or twice a month to check on the property and trim up the landscaping may be less expensive. 

Checking the ammenities offered in a community with an Association fee is an easy task, especially with the help of a Realtor.  Some subdivisions are golf course communities, some have heated pools and other have pools, some subdivisions have a rec center and exercise room with new equipment, pool tables, card rooms, cooking classes, bocci, weekly get togethers, and common areas which allow for walking with one’s dog.  Take note of what is being offered and run cost comparisions about the different areas.

If there is an Associaiton, the Realtor should check the budget of the Association and determine there are no major capital improvements about to come due, such as a renovation of the Rec Center.  An assessment may be placed on all owners so funds are available for the project.  Ascertaining there are no lawsuits is also prudent.  A buyer doesn’t want to purchase in a new community and immediately get dunned  with addiitonal levies.

Some associations will tend to the landscape of the front yard but not the back yard.  Check to make sure what is included in the fees.  In Townhome communities or condos, often utilities  are included.  When computing the fee, estimate the dollar amount exterior insurance, water,  and electric would be , then deduct that from the fee to get a more realistic number. The homeowner has to pay utilities anyways; paying the fee may be beneficial.

Determine what is offered with the fee, and then judge the property accordingly.

With today’s technology, people often begin their search for a new home on line, using any of a number of websites as well as google earth, or web sites of individual agents.  Many agents have IDX (internet data exchange) links on their sites so that people interested in real estate can input criteria, then a list of homes which meet that criteria appears.

To see an idx site, check my web site at:  http://www.terrybishop.com .  Clicking on the “Search Property” buttom in the upper right corner brings up a new page.  The left side of the page has a button titled “Search MLS/IDX” .   Clicking on that button brings up the IDX for the Tucson Multiple Listing Service.

Very often buyers think they know what they want, but when they actually look at property, their criteria changes.  However, there are some questions one can ask oneself to determine some basic guidelines:

     How many bedrooms?     Is one bedroom being used  as an office?    Or are there  “his” and “hers” offices?  This is the difference between a two bedroom home and a four bedroom home.

    What type of entertaining?  Formally with a dining room, or casually with a great room, or outdoor entertaining?  If the buyer is coming from a cold wintry state, the idea of entertaining outdoors year round probably is an anomaly.  This has implications for the type of yard and proximity to neighbors.  Having a rousing barbecue with several friends, in conjunction with the game on tv, may not make Mildred next door an endeared neighbor.   Entertainment needs govern lot size and lot configuration.

    Are children or grandchildren staying for long periods of time?  Watch the CC and R’s, covenants, codes and restrictions. to make sure children under a certain age can visit for long periods of time.

  Are medical concerns a priority?  Distance to the VA Hospital or other medical facility is an important consideration since Tucson/Pima County  is a vast area encompassing a 40 mile by 40 mile area.  Geographic location will be a prirority.  

    And what about houses of worship?  Places to take classes such as Pima Community College or the U of A, or parks and recreation facilities.  Is golf important, or just an inkling in the back of the mind?  A golfer who likes different challenging courses doesn’t need to live on a golf course or in a golf course community, but someone who plays golf religiously on the same course might find a golf course home of paramount importance.

    The New York Times Style Magazine carried an interesting article about Tucson a few days ago which gives a capsule view.  Check it out at:                                   http://travel.nytimes.com/2010/01/03/travel/03hours.html?

Tomorrow: Active Adult Communities vs regular communities.

   If you have any topics you, my reader, have any topics about which you would like me to write, please comment and let me know.

     Charles Dickens sums up my sentiments of this past decade, the start of the twenty first century succinctly in Chapter One of A Tale of Two Cities.

       “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way”

   So it has been with the gyrations of the real estate market, especially here in Tucson where property values soared more than 45% in less than three years, where people could buy a $400,000 home with no money down.  The Light shone upon all…and then it came wickedly crashing down to the season of Darkness.

      But now, people are acclimating to what is occurring in this market. Sellers desiring to move on to other places know that the price they get for their home is not the price they would have commanded in 2006…but then what they are paying for their new accommodations is substantially less than 2006 pricing.  A degree of Realism has set in.

    Snowbirds, arriving daily to escape shoveling snow, scrapping sheets of ice from car windows, slip sliding on black ice, or desiring just to get away from bone chilling temperatures and get warm, have a plethora of homes from which to choose, in all price ranges, and substantially lower in price than last year.

    Communities throughout the county have homes which are in distress.  Potential buyers should look for a Realtor who is knowledgeable about short sale and foreclosure properties as well as an agent who understands resale and new home construction transactions.  Checking the credentials of potential agents and insuring that agent is a Realtor should be the first order of business.  A Realtor abides by the code of conduct and ethics set forth by the National Association of Realtors.  Not all real estate agents are Realtors.

Tomorrow:  Looking for a Tucson home

   The new Mortgage Disclosure Improvement Act (MDIA) promulgated by the federal government is not much of a change for lenders who were ethical and disclosed costs initially;  but for those unscrupulous lenders who performed “bait and switch” during the home buying heyday, lamentations are rampant.

   “The purpose of the new Mortgage Disclosure Improvement Act is to insure buyers are fully aware of closing costs and interest rates which they will be charged on their mortgage loan,” said Courtney Walker, Vice President of Nova Home Loans.  “They don’t get to the closing table and are surprised by the numbers”, Walker continued.

   Within three days of applying for a loan, a full cost disclosure must be given to the applicant.  The cost disclosure must be given before any fees are collected, with the exception of any fee charged for pulling the consumer’s credit report, according to the amendment to Regulation Z, Truth in Lending.  Closing cannot take place for seven days unless specifically requested for an emergency.

   In the heyday, reputable lenders provided cost estimate sheets for their clients with the closing costs and loan costs spelled out, including the interest rate.  Good Realtors helped clients by providing clients with names of honest lenders and kept an eye on closing costs, making sure there were no pre payment penalties or other charges unless the client understood the terms of the loan. 

   This legislation comes as a result of the numbers of people who said they did not understand the terms of their loan and the loan costs, such as the option arm loans or the first 80% fixed rate loan with an adjustable rate for the second loan. 

    “The point of the MDIA is that whenever closing costs or interest rates change, the APR reflects these changes in the closing costs and interest rate.”  Walker gave the following example:  A person is offered a fixed rate and the APR is stated, and then offered a 2% rate with a $10,000 up front charge.  How does that person know which loan to choose?  ”How are they going to compare an apple with an orange?  The APR will help do that”, Walker said.

   Under the new legislation, if the APR moves 1/8 of a point either up or down, the lender must redisclose to the client “to insure that the buyer is fully aware”.  The borrower must be given a reasonable amount of time to review the new numbers.   “The buyer must receive, review and acknowledge in writing the new disclosure”  and if the new numbers are not approved, then the buyer must change courses. 

    Escrow fees are included in the APR so it is important that the Title Company named in the buyer contract documents is not changed.  Title companies in the Phoenix area charge different rates than the title companies here in Tucson.  For people purchasing foreclosure or short sale properties, any costs the buyer pays, such as allowable seller closing costs, must be included in the APR. 

    If the market moves tremendously, and interest rates go down, redisclosure is mandated, even if to the borrower’s advantage.  Lenders cannot collect upfront fees from borrowers at the time of application.   These include appraisal fees and lock in fees. 

    Lock in fees are relatively new and are similar to earnest money, Walker said.  The purpose of up front lock in fees is because investors (of the loans which the borrower is applying) are beginning to penalize lenders for not delivering on loans for which borrowers apply.  This is often due to borrowers shopping rates.  “Time, money, and effort is put into getting a loan approved” Walker said, and the lock in fee shows good faith on the part of the borrower.  The fee is remitted at the close of escrow as a credit on the closing statement.

    The new requirements do not add time to the loan process, Walker said.  “Nova underwrites locally, draws the docs locally, and funds from its own money,” she added.  “Even with FHA and VA loans, we have basically a 30 day turn around time”.

    Some lenders are recommending a 45 day closing time, so that if a contract is written August 1, closing should be stated September 15.    A Realtor who works closely with the lender is your best advisor, knowing the turn around times of lenders is even more important, and it underscores the need to use local lenders.

Resources:

Nova Home Loans    http://www.lancedickson.com

Federal Reserve Board Press Release

 http://www.federalreserve.gov/newsevents/press/bcreg/20090508a.htm

Federal Register:  http://edocket.access.gpo.gov/2009/pdf/E9-11567.pdf

    U.S. Representative Travis Chiders from Mississippi has sponsored with 37 co sponsors House Bill  3044 which calls for an 18 month moratorium on  the Home Valuation Code of Conduct.   The bill, sucinctly states:

SECTION 1. MORATORIUM ON THE HOME VALUATION CODE OF CONDUCT.

No one from Arizona has co sponsored the bill.   The bill effectively puts a moratorium on Andrew Cuomo’s call for Appraisal Management Companies (AMC) and allows time to develop rules and regulations governing the appraisal industry.

As well as lenders, Realtors, and Wall Street, the appraisal industry has also been cited as a cause of the economic melt down.  It is alleged that appraisers were given a “target price” to meet by lenders which over valued the property and contributed to “loan fraud”.   Ironically, many of the large Appraisal Management Companies are subsidiaries or sister companies of the large banks which are currently underwriting Fannie Mae and Freddie Mac loans.  These are the types of loans governed by the Home Valuation Code of Conduct.

Tom Heath, in his blog post Saturday, takes the Federal Housing Finance Agency to task and its Director, James Lockhart, for knowing little about the Home Valuation Code of Conduct.  Heath is President elect of the Southern Arizona  Mortgage Lenders Assocation and was guest blogger at this site last week.  With his permission, I am reposting Heath’s comments.

http://theheathteam.wordpress.com/2009/07/26/fhfa-is-out-of-touch-with-reality-and-hvcc-must-go-away/

Anyone concerned with real estate should take time to read this post and contact state representatives to support House Bill 3044 calling for the mortatorium on the Home Valuation Code of Conduct. 

Resources:

http://www.govtrack.us/congress/billtext.xpd?bill=h111-30

 http://www.govtrack.us/congress/bill.xpd?bill=h111-3044

The path taken by people trying to get out from under negative equity or mounting bills is littered once again with potential legal problems for Realtors, buyers, and sellers.  The passage of the Arizona Senate Bill 1271 emphasizes the need for people to seek legal counsel when contemplating a foreclosure or short sale.

The Arizona Association of Realtors  (AAR) requested that Governor Jan Brewer amend the call for a Special Session of the Legislature to review the issues resulting from the passage of Senate Bill 1271, otherwise known as the Anti Deficiency legislation.

This bill states that within 90 days of the sale of property under a trust deed, “an action may be maintained to recover a deficiency judgment against any person directly, indirectly, or contingently liable on the contract for which the trust deed was given as security…”

This does not apply to any property 2 ½ acres or less used as a one family or single two family dwelling by the trustor  for at least six months and for which has a certificate of occupancy was issued

The legislation continues that the deficiency judgment will be for an amount equal to the amount owned to the beneficiary as of the date of the sale, as determined by a court.  This can be for the difference in the fair market value, less the amount of liens owed, and includes any interest which may be incurred. 

The party seeking remediation must act within the 90 day period, and if no action is pursued, the proceeds of the sale are considered full payment of debt.

In the letter to Governor Brewer, Tom Farley, CEO and Cheif Lobbyist for the AAR,  points out this bill applies people with second homes, rental property, and family owned property.  Developers, Farley said, are not protected . The statute points to the “subtle difference” in the property “being utilized as a one or two family dwelling”  which is how the existing statute reads, rather than the amended version which specifies “the focus is on the trustor themselves utililizing the property instead of the property being utilized”.

Farley’s letter came as a result of researching case law and the consequences of this bill.  He substantiates the letter with case law from various jurisdictions.  Lenders receiving Troubled Asset Relief Funds (TARP) are authorized to seek deficiency judgments against property owners after foreclosure.  Deficiency judgments allow for the judgment creditor to garnish the wages of the judgment debtor, employ collection agencies, garnish non earnings such as bank deposits, take non-exempt property and sell it at a public auction to satisfy the debt, and place a judgment lien on real property owned or later acquired by the judgment debtor.

The legislation came as a result of lobbying from the Arizona Bankers Association.  Arizona is one of the highest foreclosure/short sale states and Arizona bankers would like to recover some portion of the millions of dollars lost.  The bill, as of this writing, is scheduled to go into effect September 30, 2009.  Unless rewritten in the special session, the courts may be filled with lenders seeking deficiency judgments against former homeowners, which will create another series of problems including a rush to file for Bankruptcy on the part of judgment debtor.

Resources:

Text of SB 1271:

http://www.azleg.gov/legtext/49leg/1r/bills/sb1271s.pdf

Arizona Association Realtors:

http://aarnews.com/

http://aarnews.com/?s=SB+1271&x=26&y=9 

Other Blogs about SB 1271:

http://en.wordpress.com/tag/sb-1271/

    The Home Valuation Code of Conduct and how it impacts Tucson real estate is also a concern of Tom Health, Vice President of Advocacy for the Southern Arizona Mortgage Lenders Association, Legislative Chair for the Arizona Mortgage Lenders Assocation and Director of the Arizona Association of Mortgage Brokers.   Tom is guest blogger today and what follows are his comments about the HVCC.

Thanks for taking the time to shed more light on the Home Valuation Code of Conduct (HVCC).  You touched upon several issues that are critical in understanding why we have to recall this policy and put in place a more meaningful method of ensuring quality appraisals.

You mention this is a “de facto regulation,” which is the perfect description.  HVCC was not implemented by an agency as a regulation, or by Congress as legislation; it was an agreement between one man and two, at the time, privately held companies.  The policy of HVCC circumvented standard public commenting periods and debate that would have been required if this were an actual regulation or law.  The Attorney General of New York, Andrew Cuomo, threatened Fannie Mae and Freddie Mac with massive lawsuits if they did not comply with this code.  The weak companies feared “tobacco type” lawsuits across the country and succumbed to the AG’s demands.

The foundation for this agreement was an investigation launched by the AG into alleged appraisal fraud resulting in values that were unrealistic, but led to huge earnings for a large national lender and their partially owned subsidiary appraisal management company (AMC).  Whether the attorney general had a foundation for his threats is not known, because as part of the agreement was to keep the results of the investigation undisclosed.

Due to the implementation of the HVCC, most lenders now work with an AMC, which is an unregulated entity and is often owned, in part or in totality, by the bank for which it performs appraisals.  Ironically, Cuomo’s code has led to the dominance of the very structure that prompted the investigation that led to the code.

What was intended to protect consumers from unscrupulous originators and appraisers has created a more expensive process for the borrower and created a lower quality and less reliable product.  You accurately point out that the cost of a report has increased, but the compensation to an appraiser has decreased.  Quality appraisers are unable to work for the reduced income and therefore, orders go to less experienced practitioners.  Many times, the appraiser is brought in from areas outside of the market and is unfamiliar with trends and characteristics of the property being inspected.

In addition to cost and quality, the code has presented a “portability” issue.  Consumers typically pay for the appraisal at or prior to time of inspection.  While the code allows the report to be transferred to another lender if the borrower so wishes and the appraisal is HVCC compliant, the reality is much different.  One large national lender has a written policy that it will only accept reports completed by its wholly owned, subsidiary AMC.  Any borrower wishing to switch to this lender would likely have to have to bear the cost of another appraisal.  This same lender also stipulates that it will only release its reports to other lenders if the borrower is declined or counter offered on the terms of the loan they requested.  In other words, if that lender wants the loan, they will not release the report even though the consumer has paid for it.

The only vocal supporter of HVCC is a professional group, Title/Appraiser Vendor Management Association (TAVMA), whose members are large AMC’s.  The Appraisal Institute has supported the HVCC mission of appraiser independence, but has asked for changes.  Fannie Mae and Freddie Mac are noticeably silent on the code.

The prevention of appraisal fraud and coercion has to be eliminated, but HVCC is a poorly planned and improper tool for the job.  Congress has introduced HR 3044 that would place an 18-month moratorium on HVCC and allow regulators to create a workable solution that takes the good intentions of HVCC and melds them with practical procedures that can strengthen the industry and protect consumers.

—

Tom is with Consolidated Lenders, The Heath Team  

 http://www.theheathteam.com/

 House Bill 3044:

http://www.govtrack.us/congress/billtext.xpd?bill=h111-3044