Mortgage Reform or Socialism?

iStock_000007621494XSmallWith all the changes currently in the mortgage industry inflicted by government regulation, you would begin wonder what happened to “Free Enterprise.” I personally have been in the mortgage business for 7 years and have watched a major transformation of how business is conducted for the worst. I am not saying there is anything wrong with some regulation to protect the consumer, but there is something wrong when government tells you whom you will do business with. “That my friends”, is a step in the wrong direction. The federal government has no business telling me whom and where to send my appraisal business to.

I am referring to the new HVCC law that requires all lenders to run all appraisal activities through a non affiliated management company. Which by the way I have been told plays the buddy system. I have heard they run there appraisals with the guys they have relations with. Here are the big problems with this system.

1. Appraisals coming back with lower value

2. Appraisers making less because of Management Company’s cut

3. Appraisals taking longer

4. No incentive for appraiser

5. Good appraisers getting put out of business

6. No Free Market

7. The buddy system

I have talked to several appraisers asking them how business was going with this new system. Here is what I was told. “I have signed up with as many Management companies as I could and have not received one order.” What does this tell me? These companies are more than likely playing favorites. This happens when companies have this kind of control. If you were to do a survey with everyone in the mortgage and real estate industry you will find that most don’t agree with this new reform. I am going to give a video link to what is going on with this new system and how it’s bad for our country. There is also a link on this site where you can sign a petition to stop this new law. SEE BELOW….

HVCC video.

I do understand why they did this from bankers prospective, but there has to be a better way to control over inflating values of homes. This particular new rule is not the solution to the problems of the past. This new reform has created more problems than solutions. My number one question would be, how much regulation does the appraisal management companies have?

Author: Mike Clover your resource for credit reports, credit cards, loans and ground breaking credit news.

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