Ascot Appraisals

BayAppraiser over at SFGate (the website mentioned in our last post) had this to add in the comments on the article “Appraisers Give Home Valuation Reform Low Marks”:

The appraisal industry is splitting into two camps. The highly competent and ethical, and the corner-cutting form fillers (who are currently in high demand by the big banks). Unfortunately the general public typically only sees the latter type of appraiser.

I would highly recommend that everyone reassess who they bank with. Reward the good lenders with your business!

Read more here.

I don’t think there is a more eloquent or articulate way to explain the current state of our industry.

Rumor has it that there will be a moratorium on HVCC this November. God willing it will be the end of it because it’s killing business for the appraisers who won’t knuckle under to the AMC monopolization of the industry. Looks like we just have to hang in a few more months and maybe the sun will break the horizon.

If you want an idea of what HVCC has done to the appraisal industry just take a look at New Orleans after Hurricane Katrina blew through. The sad part is that HVCC was totally preventable and can be reversed if enough people just speak up.

The problem is that when people are “speaking up” they are so misinformed that they almost cause more damage than they do good. Take the article recently posted at SFGate (website for the San Francisco Chronicle) titled, “Appraisers give home-valuation reform low marks”

Under the reforms, when a home is sold, lenders must arrange an appraisal through middlemen called appraisal management companies, which hire the appraisers.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/21/MNJJ1C3DIM.DTL#ixzz0gPk0vPHP

Lenders are NOT required to use AMCs (Appraisal Management Companies) but the AMCs sure want you to think they do, don’t they?

Reading through the comments following that article is enough to make any decent appraiser’s blood pressure rise.

“They don’t want to put the time and effort into doing a good job (probably because they are mad because of getting ripped off by the Appraisal Management Companies).
Many appraisers are probably poor people who love to hurt those who are better off than them. How sad.”

While many comments seemed to be accurately focused more than a few contained sentiment like that quoted above. It amazes me how many people want to use appraisers as the scapegoat for the great bubble burst (and the boom) when appraisers are some of the FEW people in the mortgage process who don’t make commissions off the transaction.

Equally as amazing are the people who insist that appraisers are somehow beholden to protect the lender’s interest. It says a lot about our society when you have people who would rather skewer small business owners rather than the big business corporations who have proven time and time again that they will increase their profit margin through any means necessary.

You can HELP by joining the group, Reverse HVCC on Facebook, and signing the petition at the Reverse HVCC website!

We wanted to give you a head’s up on what we are doing to stay compliant with HVCC. Obviously, HVCC has complicated a lot of things and has certainly made things harder for the smaller appraisal companies, like us, who have worked hard to establish trust and a positive working relationship with our clients.

We have joined with ValueConnect.Com, this is a service provided by the same company who handles our E&O insurance (FREA) and one of our datasources (NDC Data) so we have a working history with them.

Additionally, we are active in promoting the petition to reverse HVCC. We ask for your support in signing the petition located at http://hvccpetition.com/ – click on Sign Petition.

In a country where people have made fortunes through hard work and free enterprise it should be a crime what has been done to appraisers today. The HVCC (Home Valuation Code of Conduct) is a classic example of one apple ruining the entire barrel.

You can HELP by joining the group, Reverse HVCC on Facebook, and signing the petition at the Reverse HVCC website!

HVCC is eliminating highly qualified, ethical, and responsible appraisers from the industry because these appraisers won’t allow their fees to be cut in half and they won’t be forced to do shoddy, irresponsible and fraudulent work for AMCs (Appraisal Management Companies) – in short, they would rather see their business DIE than comply with ridiculous regulations that hurt the homeowner and their clients as well as the appraisers themselves.

Due to HVCC appraisers are no longer allowed to build their businesses in the traditional fashion. They aren’t even allowed to build their businesses at all. All the time spent nurturing good business relationships with trusted clients in the mortgage and real estate industry is down the drain now because clients can no longer select their appraiser themselves. Clients are forced to order appraisals through an AMC and an appraiser is selected FOR them. At times the appraisers selected are from another county entirely and have NO KNOWLEDGE of the market area, yet these appraisers are sent out to do work while qualified appraisers sit back twiddling their thumbs and listening to the complaints of their former clients who are left receiving less than quality appraisal reports.

Over the last year Ascot Appraisals has mainly done FHA appraisals. AT this time (until February 2010 – is our understanding) we are still allowed to accept orders directly from our clients as long as they are for FHA appraisals. This is due to change as HVCC continues to ravage the industry like an out of control cancer.

Soon, we will no longer be able to contact our clients, we won’t be able to discuss ethical business related matters because our clients won’t be able to USE US unless we literally surrender our business, ethics, and hard work to an Appraisal Management Company – and even then, our clients wouldn’t be able to specify to that AMC that they want to use us.

The AMCs require appraisers to return completed reports in LESS TIME than it actually takes to research and compile ethical and accurate report that abides by USPAP guidelines. Instead, incorrect values are being made, less than appropriate comparables are being used, and research that goes into compiling an accurate report is being eliminated altogether.

You get what you pay for… and this is living proof of that.

It doesn’t matter if you work in the industry or not, if you support small business, if you own your own home or any property at all, if you are planning to buy a home – this affects you directly and painfully.

You can HELP by joining the group, Reverse HVCC on Facebook, and signing the petition at the Reverse HVCC website!

Everyone needs a fresh start from time to time. This year we’ve elected to give our website a fresh look for the new year. All of the features our clients know and love are still here and can be found easily with our new menu bar that at appears at the top of every page.

We hope our visitors enjoy the new look as much as we do!

Happy New Year!!!