bartow hvcc 10 15 2009

Francois K. Gregoire, IFA, RAAFrancois K. Gregoire, IFA, RAAState Certified Residential Appraiser #142State Certified Residential Appraiser #142

What Was, What Is,What Was, What Is,What’s to ComeWhat’s to Come

Bartow - © 2009 Frank Gregoire 2

PREPARED FOR:PREPARED FOR:

Bartow Board Bartow Board of of

REALTORSREALTORS©©


about Frank………...about Frank………...

• Licensed since 1976Licensed since 1976• Realtor® since 1977Realtor® since 1977• Appraising since 1977Appraising since 1977• State-Certified Residential State-Certified Residential

Appraiser since 1989Appraiser since 1989


about Frank………...about Frank………...

• Real Estate License Law and Appraisal Real Estate License Law and Appraisal Instructor since 1977Instructor since 1977

• Member Florida Real Estate Appraisal Member Florida Real Estate Appraisal Board February, 2000 – February, 2008Board February, 2000 – February, 2008

• Qualified Expert Witness - Pinellas Qualified Expert Witness - Pinellas County Circuit Court, United States County Circuit Court, United States Bankruptcy Court, Division of Bankruptcy Court, Division of Administrative HearingsAdministrative Hearings


TODAY – THE HVCCTODAY – THE HVCC

• What WasWhat Was• What IsWhat Is• What’s to ComeWhat’s to Come


What Was PRE-HVCCWhat Was PRE-HVCC• OptionsOptions

• Appraiser SelectionAppraiser Selection• DirectDirect• AMCAMC

• Appraiser CompensationAppraiser Compensation• Collection by AppraiserCollection by Appraiser• Collection at SettlementCollection at Settlement• AMCAMC


What Was PRE-HVCCWhat Was PRE-HVCC• Loan PortabilityLoan Portability

• Assignment of Appraisal Assignment of Appraisal (lender/broker)(lender/broker)


What Was PRE-HVCCWhat Was PRE-HVCC• ProblemsProblems

• Value ChecksValue Checks• Broadcast Appraisal AssignmentsBroadcast Appraisal Assignments• PressurePressure

• ValueValue• Detrimental ConditionsDetrimental Conditions• Negative InfluencesNegative Influences

• BlacklistsBlacklists


What Is – POST-HVCCWhat Is – POST-HVCC

• Selection and Retention Selection and Retention of Appraisers Restrictedof Appraisers Restricted

• Standards for Appraiser Standards for Appraiser Independence Independence EstablishedEstablished

• Applicable to all mortgage Applicable to all mortgage loans sold to Fannie Mae loans sold to Fannie Mae or Freddie Macor Freddie Mac


What Is – POST HVCCWhat Is – POST HVCC• Realtor, Broker, Mortgage Broker, Loan Realtor, Broker, Mortgage Broker, Loan

Production StaffProduction Staff• Cannot select, retain, recommend or Cannot select, retain, recommend or

influence selection of appraiserinfluence selection of appraiser• Cannot recommend appraiser for Cannot recommend appraiser for

approved panelapproved panel• Cannot blacklist appraiser from Cannot blacklist appraiser from

approved panelapproved panel• Cannot compensate appraiserCannot compensate appraiser


What Is – POST HVCCWhat Is – POST HVCC• Loan Production Staff ProhibitionsLoan Production Staff Prohibitions

• Substantive communication with appraiserSubstantive communication with appraiser• Obtaining additional appraisals or AVMs Obtaining additional appraisals or AVMs

unless conditions metunless conditions met• Activity to impair or restrict appraiser’sActivity to impair or restrict appraiser’s

• IndependenceIndependence• ObjectivityObjectivity• ImpartialityImpartiality


What Is – POST HVCCWhat Is – POST HVCC• Lender RequirementsLender Requirements

• Quality Control TestingQuality Control Testing• 10% or statistically significant10% or statistically significant• Report adverse findings to Report adverse findings to Fannie/FreddieFannie/Freddie

• Refer Appraiser and Appraisal Refer Appraiser and Appraisal Management MisconductManagement Misconduct

• Warrant compliance with the Warrant compliance with the HVCCHVCC


What Is – POST HVCCWhat Is – POST HVCC• BorrowersBorrowers

• Higher fees Higher fees • Fewer loan optionsFewer loan options• Delayed interest rate locksDelayed interest rate locks• Lengthened loan approval processLengthened loan approval process• Possibility of multiple appraisals and Possibility of multiple appraisals and

feesfees• Entitled to copy of appraisal report Entitled to copy of appraisal report

PRIOR to the closing of the loanPRIOR to the closing of the loan


What Is – POST HVCCWhat Is – POST HVCCNAR Survey ResultsNAR Survey Results

• Increased time to receive appraisalIncreased time to receive appraisal• Over 75% of members report receipt of appraisal Over 75% of members report receipt of appraisal

report takes longer – most report increase of 8 report takes longer – most report increase of 8 days or longerdays or longer

• 71% of Appraiser Members report less time 71% of Appraiser Members report less time allowed to complete appraisal reportallowed to complete appraisal report

• Increased use of out of area appraisersIncreased use of out of area appraisers• 70% of members report higher instances of 70% of members report higher instances of

appraisers from distant areas – most see increase appraisers from distant areas – most see increase of up to 25%of up to 25%

• Appraiser Members see 15% increase in Appraiser Members see 15% increase in assignments for unfamiliar geographic areasassignments for unfamiliar geographic areas


What Is – POST HVCCWhat Is – POST HVCCNAR Survey ResultsNAR Survey Results

• Consumers paying more for appraisalsConsumers paying more for appraisals• 64% of members report increased appraisal cost 64% of members report increased appraisal cost

to borrower – generally reported to be about to borrower – generally reported to be about $100.00$100.00

• 53% of Appraiser Members report their fees 53% of Appraiser Members report their fees REDUCED – 16% report reductions of 50% or REDUCED – 16% report reductions of 50% or moremore

• Perceived Reduction in Appraisal QualityPerceived Reduction in Appraisal Quality• 86% of members perceive reduced quality 86% of members perceive reduced quality • 84% of Appraiser Members perceive reduced 84% of Appraiser Members perceive reduced

quality attributed to turn time requirementsquality attributed to turn time requirements


What’s to ComeWhat’s to Come• Efforts to DelayEfforts to Delay

• H.R. 3044 – 18 month moratoriumH.R. 3044 – 18 month moratorium• NAR Call to ActionNAR Call to Action• NAR State Attorneys General NAR State Attorneys General

Association InitiativeAssociation Initiative• NAMBNAMB

• Independent Valuation Protection Independent Valuation Protection Institute (IVPI)Institute (IVPI)


What’s to ComeWhat’s to Come• FHA Implementation – HVCC LightFHA Implementation – HVCC Light

• Appraiser IndependenceAppraiser Independence• Appraisal PortabilityAppraisal Portability• Appraisal Validity PeriodsAppraisal Validity Periods


What’s to ComeWhat’s to ComeDealing With ItDealing With It

• Regulation of Appraisal Management Regulation of Appraisal Management CompaniesCompanies• NAR PolicyNAR Policy• FAR PolicyFAR Policy

• Prosecution of Incompetent Prosecution of Incompetent (Experience and Geographic) (Experience and Geographic) AppraisersAppraisers


What’s to ComeWhat’s to ComeDealing With It - Demanding Dealing With It - Demanding

CompetenceCompetence• what license do you hold, what is the what license do you hold, what is the

number? number? • when did you first obtain your license? when did you first obtain your license? • are you a licensed or certified appraiser, or are you a licensed or certified appraiser, or

are you a trainee appraiser? are you a trainee appraiser? • where are you from? where are you from? • when was the last time you appraised a when was the last time you appraised a

property in my neighborhood?property in my neighborhood?


What’s to ComeWhat’s to ComeDealing With It - Demanding Dealing With It - Demanding

CompetenceCompetence• do you know any of the local Realtors or do you know any of the local Realtors or

Agents in this area? Agents in this area? • do you have access to the local Multiple do you have access to the local Multiple

Listing Service? Listing Service? • please give me a general physical please give me a general physical

description to enable me to recognize description to enable me to recognize you at the appointmentyou at the appointment


What’s to ComeWhat’s to Come

Emerging Non-AMC SolutionsEmerging Non-AMC Solutions

Appraiser Independence Management System Appraiser Independence Management System


What’s to ComeWhat’s to Come• AIMSAIMS

• Identify a pool of trusted appraisers Identify a pool of trusted appraisers • Define and exercise specific policies that Define and exercise specific policies that

reflect your risk/quality posture reflect your risk/quality posture • Proactively demonstrate Home Valuation Proactively demonstrate Home Valuation

Code of Conduct (HVCC) Conformity Code of Conduct (HVCC) Conformity • Standardize collateral valuation operational Standardize collateral valuation operational

processes across the lenders portfolio of processes across the lenders portfolio of mortgage products mortgage products


What’s to ComeWhat’s to Come• AIMSAIMS

• Approved Appraiser List and ManagementApproved Appraiser List and Management• Appraiser selection based on competencies and service Appraiser selection based on competencies and service

areaarea• Appraisal selection and cascading through candidate pool Appraisal selection and cascading through candidate pool

(in the event of assignment decline by appraiser) (in the event of assignment decline by appraiser) • Generation of appraisal requests with appropriate milestone Generation of appraisal requests with appropriate milestone

events events • Communication of Appraisal Conditions Communication of Appraisal Conditions • Appraisal Request Generation Appraisal Request Generation • Broker Dashboard – Status UpdatesBroker Dashboard – Status Updates• HVCC Certificate with audited milestones in the ARC HVCC Certificate with audited milestones in the ARC • Appraisal System and Management Appraisal System and Management


Francois K. Gregoire, IFA RAAFrancois K. Gregoire, IFA RAA

State Certified Residential State Certified Residential Appraiser #0000142Appraiser #0000142

Gregoire & Gregoire, IncGregoire & Gregoire, Inc

Realtor - AppraiserRealtor - Appraiser

727-344-3393727-344-3393

[email protected]@tampabay.rr.com

bartow hvcc 10 15 2009

Documents

appraiser members

certified appraiser

realtor appraiser

appraiser collection

trainee appraiser

management appraiser

appraisal quality

receipt of appraisal