There has been a controversy over the HVCC law which went into effect last year. This law was supposed to prevent loan officers and other people associated in a loan transaction from influencing an appraiser to push the value to a higher amount. Unfortunately the cause of the creation of this law, Andrew Cuomo investigating a lender pressuring an AMC (Appraisal Management Company) which than pressured the appraiser to get higher values transformed the industry into lenders using AMC’s more often. So rather than your mortgage broker being able to order an appraisal with a trusted appraiser, they are forced into appraisals being completed by appraisers who may have little or no knowledge of a home owners market area or have much experience in appraising at all. Why? Because the AMC’s shop for the appraiser who will do the job for the least amount of money and in the shortest time period.
Here is a humorous video clip that was sent to me due to a modification in the law that appraisers should be paid “normal and customary fees”.
http://www.video.me/ViewVideo.aspx?vid=9368
Please watch this, the Hitler Economic Fuher (AMC’s) is at it again.
