Mortgage Rates and HVCC News – What is next?
ByHVCC Petition Submitted; Mortgage Rates Hit Floor.
Here was a very interesting article that I came across when reading up on the Real Estate news this AM. We are keeping on the forefront of everything Real Estate, so we can keep our clients best informed.
Paris and I also mandate our Team to be well appraised of the daily news that is mortgage and Real Estate Related.
This article is no different than what we usually come across – but with a major difference. The HVCC and the way it is hurting us is clearly laid out in plain English.
If you are a Seller or A Buyer out in the world – this has done nothing but caused damage and this is how:
“First, it has increased the cost of appraisals because some appraisers must work through a middleman, Appraisal Management Companies. Instead of the appraiser earning the entire fee for performing the appraisal, they must split the fee with the AMC thus the increased price for appraisals.
Next, it has extended the time period for closing. With the start of HVCC, I have seen the time from ordering an appraisal to the report being submitted extend by well over a week. This delay in getting the appraisal has led to some locks expiring or closing dates missed causing the homeowner additional fees.
Finally, since appraisers are earning far less per appraisal they want to perform as many as possible. This has led to many appraisals being done by appraisers that must travel a considerable distance to the subject property. If the appraiser is not familiar with the subject property’s area, many believe they will not be able to provide the best comparables and a fair opinion of value.” – by Victor Burek, Nov 19, 2009, http://mortgagenewsdaily.com
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