Financing in Dana Point>Question Details

Curious Jorge, Other/Just Looking in Dana Point, CA

Which companies order appraisals directly, without using an AMC. I want to get a mortgage without an AMC choosing the appraiser

Asked by Curious Jorge, Dana Point, CA Wed Jun 22, 2011

Help the community by answering this question:

Answers

11
Realtors know that all has not been rosy since the enactment of HVCC, which mandated the use of Appraisal Management Companies ("AMC's"). Many do not realize that HVCC is no more and the use of AMC's is no longer required under federal law.

In fact, the industry wide statistic is that appraisal rebuttals (aka challenges) under TILA Section 129E(c) is 30%.

(At our company, appraisal rebuttal is 2.9%. An AMC does not choose the appraiser.)

Background:
The Dodd–Frank Wall Street Reform and Consumer Protection Act H.R. 4173 was signed into law on July 21, 2010. Appraisal procedures fall under Title XIV - Mortgage Reform and Anti-Predatory Lending Act, Subtitle F - Appraisal Activities
"Within one year, the Government Accountability Office shall conduct a study on the effectiveness and impact of various appraisal methods, valuation models and distribution channels, and on the home valuation code of conduct and the appraisal subcommittee."

HVCC is no longer in effect. Section 1472, Title XIV Mortgage Reform and Anti-Predatory Lending Act of Dodd-Frank Act (HR 4173) called for the sunset of HVCC 90 days after enactment of the Bill. That date was October 21, 2010. The comment period ended 60 days later. As required by the Dodd-Frank Act, the Federal Reserve issued an interim Final Rule on October 18, 2010. This rule was issued in order to ensure the independence of the appraisers and the requirement that appraisers are to receive “customary and reasonable payments for their services.” The interim Final Rule issued by the Federal Reserve is mandatory and effective April 1, 2011.

What this means is that HVCC is the past, although many lenders continue to use AMC's. The act provides specifically that: "When the Board promulgates the interim final rule, the Home Valuation Code of Conduct, the current standard for appraisal independence for loans purchased by Fannie Mae and Freddie Mac, will have no further force or effect."

The present is Fannie Mae and Freddie Mac Appraiser Independence. These are codified in section 1472 of the act.

The future is the Federal Reserve Final Rule.
Web Reference: http://rpm-mtg.com/csnyder
0 votes Thank Flag Link Wed Jun 22, 2011
That is right! The lender is the one to decide on the HVCC appraisal decision but I have lenders that doesn't use an appraisal management company. No borrower can choose their own appraiser but I have a few investor that will give you an option to use appraisers on and off their list.
0 votes Thank Flag Link Wed Jun 22, 2011
Most lender PREFER use then own appraiser...

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Jun 22, 2011
Michael,

Most of my business in non-conforming. No lender/investor allows us to choose the appraiser. Even on our Correspondent and Direct Lending. This has nothing to do with Fannie/Freddie. It has to do with the lender.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Jun 22, 2011
Your only other option is to use a non-conventional lender. I have a few lenders that don't fall into the Fannie Mae /Freddie Mac guidelines. Give me a call at (714) 709-9064 so we can discuss. Any other lender will have to use the guidelines of the HVCC.
Michael
0 votes Thank Flag Link Wed Jun 22, 2011
Don't believe the horror stories you have heard. I have only had to challenge one loan since AMC where initiated. The last loan I originated in Dana Point on Avenida Romero came in $37,000 more than my Data Quick comparable sales for the area.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Wed Jun 22, 2011
Curious Jorge, when it comes to choosing the appraiser the goal is to have a random, unbiased, unattached to the parties invoved, professional do the work. As a REALTOR I can give you a pretty good evaluation of a property's value. What is your main concern? Or let me know the property in question and I'll give you some feedback.
Michael Emerson, REALTOR, 949-295-6224, michaelemerson@cox.net
0 votes Thank Flag Link Wed Jun 22, 2011
Mission Hills Mortgage does not use an AMC for most loans an internal process is used to randomly select the appraiser. The loan program may dictate internal or external. Many regional banks use an internal selection process. No matter which process is used the appraiser may not be selected by the borrower or loan officer.
0 votes Thank Flag Link Wed Jun 22, 2011
Our company has its own appraisal division.
Web Reference: http://rpm-mtg.com/csnyder
0 votes Thank Flag Link Wed Jun 22, 2011
With some loan programs they'll even allow you to choose the appraiser - those loan programs wouldn't be Fannie Mae, Freddie Mac, FHA, USDA or VA options... but they are out there.

If you are looking for one of the other 4 options (USDA would be out since Dana Point & vicinity isn't eligible) above, then you would likely be looking for a community bank which has it's own roster of appraisers, as these community banks would be used to lending in their area so they wouldn't need to have an AMC to select an appraiser for them... even though no AMC is used, it'd still be on a "Round Robin" system though. This would not be your large chain lenders like BofA, WF, etc., they would instead be similar to Farmers & Merchants Bank, California Bank & Trust, Pacific Western Banks (these are all just banks in the South OC area - I have *no* clue if they use an AMC or their own roster of appraisers).

Mortgage brokers you think, by default, would have a lot of options... but mortgage brokers broker a loan to a lender, and those lenders barely trust brokers originating loans (OK that is a very big exaggeration but brokers loans come under greater scrutiny - it was just emphasizing the point), so brokers will almost always have to rely on an AMC (unless they are brokering a loan to one of those community lenders like I named above, which usually do not offer relationship to mortgage brokers).
0 votes Thank Flag Link Wed Jun 22, 2011
Only time you would be able to is through select portfolio lenders. All Conventional and FHA lenders use AMC's. Most AMC's use a local appraiser. What is your concern about an AMC?
Web Reference: http://www.bma-loans.com
0 votes Thank Flag Link Wed Jun 22, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer