Monica Grosz

New HVCC (Home Valuation Code of Conduct) appraisal procedures for all real estate transctions after May 1, 2009 seem just know to be coming to light as consumers and real estate professionals alike suffer the fall-out.

Presumably in an effort to create a layer of objectivity to the appraisal process, the Federal Housing Finance Agency (FHFA), along with Fannie Mae and Freddie Mac ordered that all lenders must order appraisals through AMC (Appraisal Management Companies). Basically, a lender now calls an 800 number and gets an appraiser assigned, based on zip codes that the appraiser has registered with the system.

So, what's the problem?

According to the National Mortgage Brokers Association:

1. AMC's are completely unregulated. (Several are under investigation for misconduct)

2. AMC's charge upwards of $150 referral fees, taken from the appraisers' payments and from additional fees passed on to consumers. Estimated increased costs to consumers this year is $2.1 Billion!

3. Appraisers are assigned to a target property from outside their market area, in direct violation of their code of ethics.

4. Because of lack of familiarity with a market area and lower payments paid to appraisers, there is no quality control of appraisers and appraisals. Appraisals are inaccurate and inadequate

5. Worst of all, consumers have no recourse. They cannot protest or contest a faulty appraisal, no one can talk to the appraiser, and consumers may not take an appraisal to another lender if a better deal comes along. Their only recourse is to pay for another appraisal!

I urge all consumers and real estate professionals to contact:

Who will you be contacting?
NY Attorney General Andrew Cuomo's Office: (212) 416-8000, Internet Complaint
Federal Housing Finance Agency (FHFA): (866) 796-5595, director@fhfa.gov
Fannie Mae: (800) 732-6643 Internet Complaint (new HVCC-specific form)
Freddie Mac: (703) 903-2000, Internet Complaint
Senators, Representatives and Governors: Click here for contact information.

There are many decent, hard-working, honest, real estate and mortgage professionals whose businesses are currently stifled due to the recent HVCC mandate, and many decent, hard-working, worthy consumers who are unable to obtain home loans or re-financing due to this issue.

I'm really appalled at what I hear passing for journalism in the media these days. I was listening to the Diane Reem (sp?) Show on NPR yesterday and actually heard one of four so-called experts say, " Not only are banks not lending to banks, banks aren't lending to consumers."

Nothing could be further from the truth. Banks are definitely writing mortgage loans to consumers with good credit and at least 3-5% down payment! And rates remain near historic lows!

The day before an Oppenheimer rep on CNBC reported that " a friend" had tried to get a jumbo loan and was quoted 11%. Well....maybe if he's an investor, or maybe he has bad credit, or no income...!

But no mortgage brokers I checked with here in Dallas are writing 11% jumbo loans except in those situations.

And then, the Dallas Morning News ran an article about an investor from California with a 620 credit score and no down payment who couldn't get a loan for a rental property priced under $100k. Hmmm, maybe there's a good reason, there...

Shocking that comments like that are taken by consumers as the truth and the norm...

It seems most people in Dallas aren't aware of a really exciting arts complex in development: La Reunion Texas. It is an arts residency program to be built on 35 lush acres in Oak Cliff.

La Reunion is named after a utopian community that existed in the Dallas area over 100 years ago (Reunion Tower is named after them!)

Last night, I went to a reception at the new La Reunion headquarters at LRTX Gallery to hear the latest in their plans. My friend and La Reunion Executive Director, Sara Jane Semrad, along with her board, held a juried architecture competition for design ideas for the La Reunion facility. Over 130 architects from 6 continents registered, and 68 submitted plans! It's called "Make Space for Art"

All of the designs are very interesting, as eco-friendly as possible.

This is such an exciting project! La Reunion is raising funds and seeking sponsors at this point, and I can't wait to see this develop!

They have lots of opportunities for communitiy involvement already, check it out at : www.lareuniontx.org

This is great news to share with prospective buyers, especially those who are relocating to Dallas and who might have an interest in the arts!

Given the recent turmoil in the financial markets, I really appreciate the wisdom of those older & wiser than myself.

I've been talking to some of those older and wiser real estate agents and mortgage brokers in the Dallas area who've reminded me of the crises of the past and how they've survived.

While I wasn't in the real estate business at the time, I remember my parents talking about the overbuilt commercial market in Dallas in the 1970's and the oil crisis.

I remember the S & L crisis of the 80's and how many people we knew lost everything what we called the "real estate crash" of the 80's here.

Every 10 yrs or so, there is a crisis of some sort, and fortunately, life continues to go on.

I don't want to minimize the current crisis, and I won't brag that my business is great. But I do believe the system is working.

Mortgage money is still available. People will continue to buy and sell houses.

Most of all, perhaps this is the wake-up call to all of us to pay down debt and save up more...

Ultimately, I believe we will all survive and thrive!