In analyzing factors regarding the slowness of the current Housing Recovery, one needs to look no further than the FDIC.
FDIC policies are at least partially responsible for slowing the Housing Recovery by encouraging appraisers to low-ball their valuation reports. The FDIC’s overly aggressive tactics in suing appraisers who provided valuations for failed lenders, which the FDIC has since taken over, is not only hurting the [more...]
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The Mortgage Bankers Association Residential Underwriting and Quality Assurance Conference in New Orleans there were discussions regarding loan denials and repurchase claims. Several heads of mortgage quality control and risk at large banking firms indicated that appraisals and values appeared to be one of the main problems with loan denials and repurchase claims. One of the key supporting reasons appeared to be a lack of relevant and accurate [more...] I am excited about the responses received from various lenders and appraisal management companies (AMCs) inquiring about Appraisal Defect Detection and Prevention or ADDP. As lenders begin to push for excellence in mortgage loan quality control by implementing loan quality initiatives, more focus is being placed on the collateral side of underwriting, which is the foundation and ultimate premise of ADDP. ADDP is the methodology, [more...] ADDP or “Add-Pee” is the new pre-funding quality control (QC) “buzz” process for appraisals that will reduce loan defects and repurchases related to collateral. ADDP will revolutionize pre-funding QC as the 4506-T and tax transcripts revolutionized pre-funding QC in regards to income, employment history, identity, residency history and Social Security Number re-verification. ADDP is an acronym for Appraisal Defect Detection & Prevention (ADDP). ADDP is [more...] GSE updates in the last few days that may be of interest to mortgage lenders, Fannie has started working with the Federal Housing Finance Agency to develop appraiser independence requirements that will eventually replace HVCC. Until the revisions to be released, state that the current HVCC requirements in the guide are still in force. Under the updated changes and requirements that are coming out, many will [more...] Thanks to the Dodd-Frank Wall Street Reform Act, the federal government is making it virtually impossible to be a mortgage broker. By extending the application of the Truth in Lending Act to include mortgage brokers (formerly limited to “creditors”) and clearly defining, and otherwise limiting, how brokers can be compensated (YSP is dead), the act is forcing brokers to rethink the way that they do business. [more...] I think that we can agree that the Home Valuation Code of Conduct (HVCC) is here to stay. The most recent change I see impacting the appraisal world are the states writing legislation in regard to appraisals management. It is funny to see the different approach each state is taking. It is very obvious that the legislation is written by appraisers because the states are [more...] |
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