Comments on: Richard Gaylord, NAR President Comments on HVCC, Says Nothing http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/ Mortgage Marketing | Mortgage News, Tools and Resources Fri, 23 Jul 2010 01:15:31 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Kevin http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-1306 Kevin Mon, 09 Nov 2009 22:16:36 +0000 http://brokerscience.com/?p=129#comment-1306 I agree with almost all that was said on this topic. HVCC is absurd and protects no-one. I disagree with Brian though, it IS our responsibilty to see that the buyer can afford the loan. Unfortunately the greed of Wall Street created these loans that people were often talked into by L/O's. Allowing rediculous margins to fuel the YSP. The States and Federal government would have been better served by chasing down unlicensed and unscrupulous L/O's and company owners. HVCC is an attempt to shut the stable door long after the horse has bolted, targeting the wrong players in this mess. The amount of money that these AMC's are taking from appraisers is wrong, it is very poor legislation that hurts everyone in the transaction with the exception of the AMC. I agree with almost all that was said on this topic. HVCC is absurd and protects no-one. I disagree with Brian though, it IS our responsibilty to see that the buyer can afford the loan. Unfortunately the greed of Wall Street created these loans that people were often talked into by L/O’s. Allowing rediculous margins to fuel the YSP. The States and Federal government would have been better served by chasing down unlicensed and unscrupulous L/O’s and company owners. HVCC is an attempt to shut the stable door long after the horse has bolted, targeting the wrong players in this mess. The amount of money that these AMC’s are taking from appraisers is wrong, it is very poor legislation that hurts everyone in the transaction with the exception of the AMC.

]]> By: Alan http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-109 Alan Wed, 16 Sep 2009 01:42:20 +0000 http://brokerscience.com/?p=129#comment-109 I would say that NAR (National Association of Realtors) addressed the issues at hand for Realtors around the nation but could have gone more in depth. NAR has done many possitive things for real estate agents in the challenging market and has done a great job with the many issues coming up. I would say that NAR (National Association of Realtors) addressed the issues at hand for Realtors around the nation but could have gone more in depth. NAR has done many possitive things for real estate agents in the challenging market and has done a great job with the many issues coming up.

]]> By: Brian http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-108 Brian Sun, 02 Aug 2009 18:45:11 +0000 http://brokerscience.com/?p=129#comment-108 I agree with all. I as a broker provide an honest service. My job is to help people acquire home financing. Wall Street created some products that in my opionion pushed the limit for common sense but because they were there and my competitors were offering them to Realtors whose job is to sell real estate, I had no choice to make my customers aware of these programs if they fit that mold. Simply put, it was my job to tell an applicant honestly if they qualify for a certain loan program. It IS NOT my job to tell someone whether or not they can afford a home. THAT IS THEIR RESPONSIBILITY!! It is not any other salesperson's job to determine whether a customer can afford the (pick one, big screen TV, luxury auto, designer shoes, filet mignon, etc.) so why is it mine and why does the government think it can legislate responsibility. The HVCC is another poor attempt by government to do that. Nothing is thought through as to the consequences of the action. Look at the MDIA!! Does anyone consult with the thousand of hard working, honest individuals who actually do the job and understand the process? Apparently not. Speaking to a bank president/attorney/administrator is not the same as speaking to originators in the field. C'mon! I agree with all. I as a broker provide an honest service. My job is to help people acquire home financing. Wall Street created some products that in my opionion pushed the limit for common sense but because they were there and my competitors were offering them to Realtors whose job is to sell real estate, I had no choice to make my customers aware of these programs if they fit that mold. Simply put, it was my job to tell an applicant honestly if they qualify for a certain loan program. It IS NOT my job to tell someone whether or not they can afford a home. THAT IS THEIR RESPONSIBILITY!! It is not any other salesperson’s job to determine whether a customer can afford the (pick one, big screen TV, luxury auto, designer shoes, filet mignon, etc.) so why is it mine and why does the government think it can legislate responsibility. The HVCC is another poor attempt by government to do that. Nothing is thought through as to the consequences of the action. Look at the MDIA!! Does anyone consult with the thousand of hard working, honest individuals who actually do the job and understand the process? Apparently not. Speaking to a bank president/attorney/administrator is not the same as speaking to originators in the field. C’mon!

]]> By: HVCC Repealed: How HR 3044 Might End HVCC http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-107 HVCC Repealed: How HR 3044 Might End HVCC Sat, 27 Jun 2009 22:27:07 +0000 http://brokerscience.com/?p=129#comment-107 [...] silent about the ramifications of HVCC until after the fact. I wrote over a year ago about the lack of leadership exhibited by Richard Gaylord when he failed to mention a single bad element of that actually mattered in [...] [...] silent about the ramifications of HVCC until after the fact. I wrote over a year ago about the lack of leadership exhibited by Richard Gaylord when he failed to mention a single bad element of that actually mattered in [...]

]]> By: Saving the World from Appraisals | RealEstateEconomyWatch.com http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-105 Saving the World from Appraisals | RealEstateEconomyWatch.com Fri, 26 Jun 2009 12:10:16 +0000 http://brokerscience.com/?p=129#comment-105 [...] According to Trace Richardson at the Broker Science blog. the NAR statement “failed to address any of the real issues on the table that stand to detrimentally affect consumers and real estate professionals including those he represents, Realtors. While Realtors stand a very real chance to be hurt by HVCC in its current form, Richard’s comments to the GSE’s fail to even touch on the most pressing issues within HVCC but instead waste an opportunity by nit picking verbiage. One might characterize these oversights as a clear lack of leadership in representing the best interests of consumers and Realtors.” (See http://brokerscience.com/legal/hvcc/nar-president-richard-gaylord-hvcc/) [...] [...] According to Trace Richardson at the Broker Science blog. the NAR statement “failed to address any of the real issues on the table that stand to detrimentally affect consumers and real estate professionals including those he represents, Realtors. While Realtors stand a very real chance to be hurt by HVCC in its current form, Richard’s comments to the GSE’s fail to even touch on the most pressing issues within HVCC but instead waste an opportunity by nit picking verbiage. One might characterize these oversights as a clear lack of leadership in representing the best interests of consumers and Realtors.” (See http://brokerscience.com/legal/hvcc/nar-president-richard-gaylord-hvcc/) [...]

]]> By: Roxanne http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-106 Roxanne Wed, 10 Jun 2009 00:51:38 +0000 http://brokerscience.com/?p=129#comment-106 We are all living the nightmare of HVCC. I am not sure who is being protected but it's NOT the consumer. Since May 1, 2009 I've seen several deals completely fail due to HVCC. Orders are taking 30 ++ days to complete instead of turn times promised, leaving locked rates to be extended at the cost of consumer. We can't even call to get status directly. Appraisals are costing $200.00 more then before in Hawaii where appraisals are already priced higher then most states. Its clear the people responsible for HVCC have NO understanding of how the loan process works and how communication between ALL parties is the foundation of the process and is important to protect the consumer as well as lender. The problems we are having with lending in our county is not an appraisal problem. WE have or had a lender program problem. CRAZY loan programs that allowed unqualified borrowers to purchase and refinance and pull hundreds of thousands of $$$ out of their properties. These programs have been elimated for the most part and the problems will correct themselves without HVCC. Mortgage brokers are not the problem either. We are being pushed out of the industry with lenders no longer willing to do wholesale business with us, instead bumping up their retail or inside sales, which in my opinion are untrained order takers. We are all living the nightmare of HVCC. I am not sure who is being protected but it’s NOT the consumer. Since May 1, 2009 I’ve seen several deals completely fail due to HVCC. Orders are taking 30 ++ days to complete instead of turn times promised, leaving locked rates to be extended at the cost of consumer. We can’t even call to get status directly. Appraisals are costing $200.00 more then before in Hawaii where appraisals are already priced higher then most states.
Its clear the people responsible for HVCC have NO understanding of how the loan process works and how communication between ALL parties is the foundation of the process and is important to protect the consumer as well as lender. The problems we are having with lending in our county is not an appraisal problem. WE have or had a lender program problem.
CRAZY loan programs that allowed unqualified borrowers to purchase and refinance and pull hundreds of thousands of $$$ out of their properties. These programs have been elimated for the most part and the problems will correct themselves without HVCC.
Mortgage brokers are not the problem either. We are being pushed out of the industry with lenders no longer willing to do wholesale business with us, instead bumping up their retail or inside sales, which in my opinion are untrained order takers.

]]> By: Rob http://brokerscience.com/legal/nar-president-richard-gaylord-hvcc/#comment-104 Rob Thu, 09 Oct 2008 20:12:15 +0000 http://brokerscience.com/?p=129#comment-104 I own an appraisal company in Texas and have been appraising for roughly 11 years. I’m well established with numerous ethical clients that have taken years to obtain. Now my family and I are worried that HVCC will put us out of business, or at best bankrupt me because I’ll have to take a 50% pay cut. We’ve already down sized and had to get rid of receptionists and offices, and have moved into home offices due to the increasing costs of gas, insurance, and the general cost of doing business. Appraisal fees have been virtually the same for 11 years and we have not received any cost of living increases to keep up with the “COST OF LIVING!” Now we’re supposed to take another pay cut? How are we supposed to do business!?!? And all to correct a problem that doesn’t exist! While there are problems with the appraisal industry (as in every industry), THE MAIN problem IS NOT the appraisal industry. It’s the lending industry. Does it really take a genius to figure out that when you sell a home to a buyer with questionable credit, nothing to put down, and provide them with 100% financing that you’ve doomed them to failure unless they experience personal financial success? Or that when you give them 100% financing on an ARM that you put a nail in their coffin? You can’t refinance them at $100%, and they can’t sell a home with no equity because of the 6% to 8% realtor commissions. What do you think the home owner will do when their taxes go up? Or when something significant needs repair or replacement (like an air conditioner, furnace, or roof)? Or when they lose work due to any hardship related circumstances? They give the home back to the bank. And now, HERE WE ARE with more foreclosures and vacant homes than ever before in our history. Most of those homes were worth what they sold for when they were appraised. Today they’re not. Not because of fraudulent appraisals, but because the market is flooded with foreclosures and short sales. Hmm I know how we’ll fix it. I have the solution! Let’s create an AMC (as another unnecessary level of bureaucracy with an empty pocket to fill) that will steal half of the fees from the appraiser so that lenders can no longer communicate with the appraisers directly. That will fix everything. NOT! What are we paying the people that come up with this nonsense for?!?!?!? I own an appraisal company in Texas and have been appraising for roughly 11 years. I’m well established with numerous ethical clients that have taken years to obtain. Now my family and I are worried that HVCC will put us out of business, or at best bankrupt me because I’ll have to take a 50% pay cut. We’ve already down sized and had to get rid of receptionists and offices, and have moved into home offices due to the increasing costs of gas, insurance, and the general cost of doing business. Appraisal fees have been virtually the same for 11 years and we have not received any cost of living increases to keep up with the “COST OF LIVING!” Now we’re supposed to take another pay cut? How are we supposed to do business!?!? And all to correct a problem that doesn’t exist!

While there are problems with the appraisal industry (as in every industry), THE MAIN problem IS NOT the appraisal industry. It’s the lending industry.

Does it really take a genius to figure out that when you sell a home to a buyer with questionable credit, nothing to put down, and provide them with 100% financing that you’ve doomed them to failure unless they experience personal financial success? Or that when you give them 100% financing on an ARM that you put a nail in their coffin? You can’t refinance them at $100%, and they can’t sell a home with no equity because of the 6% to 8% realtor commissions. What do you think the home owner will do when their taxes go up? Or when something significant needs repair or replacement (like an air conditioner, furnace, or roof)? Or when they lose work due to any hardship related circumstances? They give the home back to the bank. And now, HERE WE ARE with more foreclosures and vacant homes than ever before in our history. Most of those homes were worth what they sold for when they were appraised. Today they’re not. Not because of fraudulent appraisals, but because the market is flooded with foreclosures and short sales.

Hmm I know how we’ll fix it. I have the solution! Let’s create an AMC (as another unnecessary level of bureaucracy with an empty pocket to fill) that will steal half of the fees from the appraiser so that lenders can no longer communicate with the appraisers directly. That will fix everything.

NOT!
What are we paying the people that come up with this nonsense for?!?!?!?

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