Dallas Home Appraisals News and Information

The Obama administration has announced a new program aimed at homeowners with second mortgages.  The program cuts the rate of the second mortgage to 1% for 5 years, when the rate would revert back.  According to the Treasury Department, as many as 50% "of the at-risk mortgages have second liens, and many of the properties in foreclosure have more than 1 lien."  Read the article here.

One more day until the HVCC takes effect and there's a huge question as to whether or not lenders are ready and if they understand the code at all.  A spokesman for an appraisal management software company says that from the calls they're getting, many lenders don't understand the rules regarding HVCC compliance, don't understand that they don't have to use appraisal management companies, and don't understand that they can be compliant and still use independent appraisers (much as we like the sound of that, we too aren't clear on how that would work).  Read about it at BrokerUniverse.

Finally, on Wednesday a House Panel voted to revise mortgage market standards, as reported on Bloomberg.  The legislation prevents lenders from transferring all mortgage risk and limits upfront commissions for brokers.  There is much in the bill that brokers oppose, and we hope their concerns will be addressed. 

But other aspects of the bill (finally) could bring some relief to independent appraisers.  The bill requires that an appraiser physically visit the property and prepare a written report - a seeming rejection finally of the insanity of computer-generated appraisals - and establishes a state-by-state system of monitoring appraisal management companies.  If you've read recent blogs you know how we feel about the immediate need for AMC oversight of some sort.  Especially since, as noted above, many lenders believe that their only choice is to order through an AMC.