Archive for May, 2009
In an effort to curb mortgage fraud and lender pressure on appraisers to bring properties in at certain values the HVCC is now in effect and as some expected could do more harm to the already stressed housing markets. What started out as good intentions can and likely will lead to unintended consequences including extended real estate closings.
All appraisal services for loans that will be sold to Freddie and Fannie must abide by the new rules and a slew of Appraisal Management Compaines have set up new businesses to handle the third party requirements for appraisal services. The catch is that some of the Appraisal Management Companies in turn are owned by major lenders.
No doubt there will continue to be changing regulations and likely changes to the regulation of these new Appraisal Management Companies. In the meantime, buyers should expect a minimum of 45 days to close on home purchases. Contact Sandra Bundy for more information. Copyright© 2009 , Sandra Bundy, Broker-in-Charge, B&P, Inc.