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Throughout 2010, NAR made significant progress educating Congress and the Obama Administration that a stable and sustainable housing market is the primary building block for any economic recovery. NAR had a series of successes in the regulatory and legislative fields, some of which are highlighted below. As we look ahead to 2011, NAR will [...]  All I can say is WOW! This year has not been boring. Game changing events happened almost every month. We started out the year with total confusion in the mortgage industry due to the new Good Faith Estimate (aka: GFE 2010). It took most mortgage professionals at least a month or two to understand the new form and the impact it would have on the consumers and themselves. Consumers received overinflated GFEs to protect the loan officer from underdisclosing everyone’s fees in the transaction. If certain fees were underdisclosed, the loan officer would have to pay for it out of his/her pocket. One of the mysteries with the new GFE 2010 is that there is no place on the GFE 2010 to sign. There is a separate form for signatures. Now where is the consumer benefit from this change? While struggling with the new GFE 2010, HUD/FHA released a waiver that they will allow “less than 90-day flips” to be financed with FHA loans (another program with a ton of misinterpretation). Oh, did I forget to mention that HUD/FHA decided January 1, 2010 to adopt HVCC (Home Value Code of Conduct) practices for all their FHA loans. The industry thought HUD would have seen the “train wreck” Fannie and Freddie created with HVCC and steered away. But in the spirit of follow the leader, HUD jumped in with both feet. Can you say complexity, when you have HUD’s version of HVCC and the new appraisal requirements for the “less than 90-day flips?” This is just another reason the industry slowed down even more at the beginning of the year. Continue reading: Real Estate Finance Forum – The Year in Review REALTORS® and their clients who encounter unlawful or unprofessional conduct by an appraiser may file a confidential complaint with California’s Office of Real Estate Appraisers (OREA). Since implementation of the Home Valuation Code of Conduct (HVCC) in May 2009, REALTORS® have reported many challenges and difficulties with appraisals, such as low appraisals, inexperienced appraisers, out-of-area appraisers unfamiliar with a local neighborhood, and problems with Appraisal Management Companies (AMCs). Appraisers are regulated by the OREA, and starting January 1, 2010, a new law directs the OREA to develop a registration process and other regulations to oversee AMCs as well. A complaint of appraiser’s misconduct may be filed with the OREA. The complaint may be made confidentially, but proper prosecution may ultimately require the complainant’s testimony in a legal proceeding. Continue reading: REALTORS® May File Confidential Appraiser Complaints For 2009, NAR’s primary public policy goal was to focus on efforts that stimulate, stabilize and strengthen real estate markets across the nation while also protecting the business interests of members. As we near the end of 2009, NAR has made significant progress on both the legislative and regulatory fronts. The successes highlighted below represent a small portion of the activity conducted on behalf of REALTORS® in 2009. As we look ahead to 2010, NAR will continue to advocate policy initiatives that benefit REALTORS® and consumers in the residential and commercial real estate industry. Protecting REALTORS®’ Business Interest and Activities Home Valuation Code of Conduct – Citing a lack of guidance from the GSEs, among other things, NAR is calling for an 18 month moratorium. Staff from both Fannie Mae and Freddie Mac met with the Appraisal Committee at NAR’s 2009 Midyear Meetings. The conversation focused on the implementation of HVCC. With the Code set to expire in November 2010, NAR supports an amendment to H.R. 3126 that will effectively sunset HVCC. On October 22, 2009, HR 3126, the “Consumer Financial Protection Act of 2009,” passed the House Financial Services Committee with an amendment that will ultimately sunset the Home Valuation Code of Conduct (HVCC). The amendment was offered by Representative Gary Miller (D-CA). During the debate Mr. Miller and Capital Markets Subcommittee Chair, Paul Kanjorski [...] The mortgage and home valuation arena is in flux still as folks continue to discover the negative impacts of the recently enacted Home Valuation Code of Conduct amid tighter lending guidelines. Some of the unintended consequences of the HVCC are longer turn times for appraisals and suspect valuations from appraisers not familiar with local [...] California Association of REALTORS® Federal Governmental Affairs Manager Matt Roberts hosted an excellent webinar on the Home Valuation Code of Conduct (HVCC). NAR, C.A.R., and SAR are listening to members, and know that HVCC caused problems in the industry. HVCC was implemented in March 2008, after the New York Attorney General studied inflated home prices, including some in California. HVCC is not a regulation or a law, but a guideline for private businesses. The original intent was to help enhance integrity in the mortgage industry, and it was to only apply to Fannie and Freddie. C.A.R. learned from members that most loans are now subject to HVCC, because appraisal management companies (AMC’s) decided it is easier to hold all loans to the same criteria. It has been nearly four years since a representative from Fannie Mae has visited SAR’s Real Estate Finance Forum. Collette Porter a Senior Account Manager for the Northern California region visited from Pasadena to highlight some of the ways Fannie Mae is supporting the current market. Responding to the level of REO properties on the market, Fannie Mae has launched the website www.HomePath.com as a search portal for REO properties. And in response to the recent federal Making Home Affordable Program, Fannie Mae has the website www.fanniemae.com/loanlookup so that individual property owners can determine if Fannie Mae owns the loan for a particular address. Continue reading: Fannie Mae makes an appearance at the Real Estate Finance Forum |
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Wednesday, December 15th, 2010
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