How the HVCC Effects You and Your Investor Mortgage

The HVCC made it legally necessary to have a middle man between the loan officer and the appraiser in a loan. However, this rule has been used by banks to get extra money from you! There has to be a middle man company between the loan officer and appraiser. This middle man company eats up 40-50% of the appraisal fee that is normally paid to the appraiser. Not only have appraisal cost risen sharply ($150 – $200) in most areas, but it forced a lot of quality, experienced appraisers out of the business!

Now there are a bunch of inexperienced appraisers, or even worse not even fully licensed appraisers, left in the pool of appraisers. Not only are these appraisers low  on experience but most have been coached by the banks to bring in the appraisal at a far lower value than normal. This is done in order to protect the banks…which doesn’t help you!

It’s like going to the hospital and finding out that the only people there are first year residents! Technically, a resident is a doctor, but are they the one you want working on you at two in the morning when you have severe chest paints?  I don’t think so.  The banks, of course, deny they are coaching the appraisers to bring the values in low – but the proof is in the pudding! HVCC has definitely changed things…for the worse!

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