HVCC Ruinous for Many
Between our Appraiser Talkback Blog and Survey we received nearly 1,000 individual comments from appraisers regarding the negative effects HVCC is having on their businesses and on the profession in the first 30 days since the Code’s implementation.
Many say the new rules will likely put them out of business eventually because they either are unable to get orders from AMCs, or if they can, the fees offered are too low (and expected turn times too quick) for them to provide quality work and make a living. While 70 percent (70%) of survey takers say they are satisfied working with AMCs at least some of the time, of the 1,000 or so responses, I can recall only a few saying that HVCC has improved their businesses and/or the process. Are there more of you?
No matter how many are quietly coping with the changes, thousands of appraisers who worked hard at building client relationships and their businesses over many years are now facing a forced career change. Many ask: how can this happen in America? How indeed.
It is too simplistic to dismiss the appraisers who thrived on work from mortgage brokers as being dishonest or incompetent and deserving of what they get. Appraisers are highly regulated, trained and licensed professionals. In return, they deserve to have their independence supported: in this regard the regulators failed appraisers, not the other way around.
In the first 60 days after HVCC nearly 1,700 appraisers have taken our survey, with preliminary results indicating that the Code is not solving the problem of pressure and may in fact be lowering the quality of appraisals because, appraisers say, many AMCs shop for the cheapest appraiser, not the best (page 6). Lenders, regulators and the public should not miss this point.
Based on the feedback we’ve received, HVCC is not only ruinous for many individual appraisers but the future of the entire profession may be in question if the competent and the qualified can no longer make a living appraising. What do you say? Whatever your experience post HVCC it’s important that you be counted- our survey and/or blog are two ways you can. We’ll keep listening and reporting for all who have ears to hear.