A note from your e-PropertyLinks Team

Please accept our invitation to join www.e-PropertyLinks.com  We are a national ( with an international presence ) online real estate listing site for both commercial and residential real estate, we reach the inboxes of over 865,000 real estate industry professionals and investors.

 

There is no fee to become a agent member or to post your listings.  There is no limit to the amount of listings you post and never a fee to search for properties for your clients on e-PropertyLinks.  There is no premium membership to up-sale you on.  All members pay the same cost.  Zero.  No cost.  We are supported by our advertisers.

 

Let us help you spread the word on your inventory and help link your listing to buyers or your buyers to the perfect piece of real estate.  Please check out our site, we have been active since August 2008 and have grown to over 25,000 listings.  Actual agents input their listings.  No automatic feeds or dumping sites of mass listings that are on every other site out there.  Let us know if you have any questions, contact information listed below.

 

 

Thank you,

Your e-PropertyLinks Team

Contact@e-PropertyLinks.com

503.305.8337

 

Come visit us at NAR this November in San Diego!

 

How We Created e-PropertyLinks

Some days  I just don’t know enough to leave well enough alone!  Do you have days like that?  I do and did… that is how e-PropertyLinks ( formerly HavesnWants) came about.  I won’t bore you with the long drawn out details but will run you briefly through the how, whys and where we are going from here with e-PropertyLinks. 

In 1998, I opened up Island Financial Group, Inc., part of my marketing was in the form of creating an email rate sheet that went out to then, just Washington & Oregon Residential Agents and that was approximately at that time, 2,500.   I had a strong interest in the  Commercial sector of Real Estate but could not figure out how to break into it on the financing level.  I was invited to attend a CCIM meeting and I was hooked!  I knew Real Estate on any level was for me.  I had never completed a commercial loan, but that didn’t stop me from creating a commercial e-mail rate sheet and sending out to my database.  The moment I hit the send button, I was nervous, but I was not prepared for what happened next.  I had been sending out my residential rate sheet for a few years now, 5 times a week, yet only yielded 1 or 2 inquiries a week.  I sent out the first commercial rate sheet ( full of terms and products I had almost zero knowledge of ) and the inquiries poured in.  I would send this sheet out twice a week and have 10 times the inquiries.  So, after attending a CCIM meeting one day, I noticed the end of the meeting was a round table session called Haves and Wants.  Where a Broker stands up and announces if they have a want or have… I stood up and said, I had a want.  I had a database at that time of 17,000 Residential & Commercial Agents in several states and if they had a property they would like to get the word out, I would post it on my rate sheet.  Oops… did I really say that… yes and they sent them.  Once, I sent the first rate sheet, more came in. 

So, this gave me an idea.  Why not create a website that did this service.  I emailed out an announcement to my growing database saying January 2006, I would have a website named HavesNWants and to sign up..  OK.. big mistake!  Sign up they did.. website done.. nope!  I got busy with the lending company again and building my database and then the next thing I realize is that it is January 1st, 2006 and I have no site.  So…. I go to the CCIMmeeting, pick up all the flyer’s of the properties for sale or needed, contacted all of them to see if I could send out an email newsletter highlighting their properties.  9 responded.  My first newsletter went out with 9 properties and wants ( cut / paste / type – all manual ).  Next week, had 89, the following week, 151.  It grew… but we weren’t automated.  I was still running a busy mortgage brokerage company, though my passion was developing full time on this email marketing newsletter.  Properties were emailed to me daily for the next newsletter to go out.  Then along with the properties, came suggestions, critiquing, etc.. I listened.  First was to create states, then categories, then date stamp..remember we still hadn’t created a website, we instead learned to create web links, update the pages daily, learned to code HTML and ad images.. all while trying to match our product up with a website company in the back ground.  4 website companies later.. we found one that understood how little we understood and helped us.   During that time, we managed to grow our database of users / email newsletter database to over 1.2 million.. then the market crash came and agents left the industry. 

On August 25th, 2008 we officially changed our name to e-PropertyLinks and launched our official site..  Today, we have over 850,000 members, comprised of Commercial, Residential Real Estate Agents, Appraisers,Title, Escrow, Attorney, 1031, TIC, Lenders, Cost Segregation, Advertisers, Inspectors etc.  We are on track to reach 1.5 million members by end of 2009.  Our service is Free.  We are supported by paid advertisers.   Our site while not 100% of what we wanted is starting to undergo phase 2 and 3.. thus giving us the look, feel and usability to make the experience a good one for the user.   Today, we have over 25,000 properties listed and we continue to grow daily.    Please take some time to visit our site and send me your feed back.  This site was created for you. ( Contact@e-PropertyLinks.com )

Thank you – Robin Weirich CBW

e-PropertyLinks

Pick and choose your battles

One of the hardest things to do in business is knowing when to pick your battle and what is the correct battle to fight.  Having been in an industry that is on a never ending cycle of ups and downs over that past decade, let alone the past 18 months in the center of the media spotlight that has made us solely responsible for the global demise of the economy, sent the US into a spiraling recession, it makes it each day we get up often times difficult.  The thought of leaving sanctuary of ones home to brave the drive into work is often times more unbearable then when we finally arrive.

However over the past 18 months or so, I, like many others in this industry have been beaten up and often times mutter quietly under our breath when we are asked what we do for a living for fear of stones being thrown at us.  The one thing I have learned through all of this is to quit fighting what I can not control.  I can not control the negative media, nor can I fight the perception the toxic media has portrayed upon my industry.  I can not control declining property values, non stop restrictive lending guidelines or record high unemployment.  I can not control the slow and painful death of one of my companies. I found that not only could I not control things but that I had over the past 18 months lost control.

After many long weeks of ramping down a business, I pondered what it would be that I would now do?  I had been in the financial side of the real estate world for 13 years, yet the times had taken a tough and hard toll on my company and I was becoming a statistic of the economic recession.  As I watched my staff slowly find part time jobs, I realized I didn’t want to give up and quit.  I realized there was no way to save what I had spent a decade building.  But instead, I decided to pick my battle, a battle that I could win and one that would help others.  I took the ultimate negative of this market and found a positive, one that not only allowed my employees to stay and work again, learn something new, but also helped others pull themselves out of the depths of despair.

I will share what this battle is that we have chosen to wager and how we are winning it and helping homeowners with our new company in my next blog.  If you have any questions, please shoot me an email at Robin@e-PropertyLinks.com

 Robin Weirich CBW

 

e-PropertyLinks

Toxic Media Fuels A Down Economy

Did you read it?   Did you hear the good news?   No?   That doesn’t really surprise me.  When we are bombarded with such constant negativity by a media that thrives on posting “Toxic Headlines” it is only natural that when we read positive news that comes out, it does nothing to improve our spirits or outlook on the economy. This is due to the fact that for every positive article in the News Paper or on the Internet News source, there are at least dozen negatives ones that overshadow it.  

Just today alone we see the great news about Housing starts, which if you haven’t read the article on MSN or CNBC, then I will quick you a quick snap shot. For first time in nearly a year something positive in on the news, Housing Starts & Building Permits were up! Does this mean end of the recession is nearing? Not likely, however it is a sign that the things are starting to improve. It’s kind of like the first signs of life after a long hard cold winter where everything has been frozen for so long and one day you walk out to your car to go to work and you notice a tree starting to show just the slightest hint of a tiny bud trying to break through the ravaged old wood and show signs of life.

However that news along with the other positive article that came out about about American Economy is Finally Showing Signs of Recovery on CNBC. This article told of small improvements with consumers not swarming but inching their ways back towards shopping malls.  They also noted in this article that while they do not feel the recession is over as of yet, the fear or shock factor of past months is dulling the consumer and like all war survivors they are picking themselves up and finally starting to dust off.  OK, maybe I  interjected some of my own interpretation of the article, but it isn’t too far from the truth.

The public can only absorb so many stories of excess greed when they and myself alike, are watching pennies so we can put groceries on our tables and out there fighting for market share in business, that is if we have a job. Today’s glaring headline of excess and greed that all the Media is focused on is  “AIG” and the excess of the 73 current and former executives a bonus of $1,000,000 each ( I had to type that out just so it looked as gross as it sounded with all those zeros. Writing one million just doesn’t have the same effect).   So, now we have total public outrage as well as we should since “we; John Q public” is footing the bill for those 73 in addition to the others that didn’t make the headline news.  However since the story broke late Thursday, it has built up steam that brought President Obama into the media fire on Monday morning when his speech brought promises to do what could be done to NOT distribute those bonuses.  However, since most people don’t really read what is going on fully, they didn’t read or listen to the full details that were broadcasted last Thursday stating that the bonuses had to be paid on Sunday, the 15th or they were liable for legal action.  So, Monday’s statement was really nothing more that of continuing to feed the frenzy that as I type this out is still being played out in the public by the media and our administration.  ( Don’t get me wrong, I like Obama and wouldn’t want his job for anything!!  That is a Toxic Media frenzy in the making…. ).  However…. However….  One can not tell me, that OUR Government was NOT aware of the fact that when they bailed out AIG on both occasions that they didn’t have a summary of expenses due for the next 48 months or more?  That they didn’t know of the obligations that AIG had committed to previously?  Were they not aware of their operating statement?  Had not taken the time to review the companies finances totally before writing them a very large check out of our checkbook?  If that is the case, then shame on our Government!!  I remember last year when things really went sideways. It started with the AIG bailout and allowing Lehman Brothers to collapse on September 16th. That was the beginning of what I call all the “Toxic Media” that along with our open check book, lack of due diligence that has fed the current economic crisis.

So, I say, ignore the “Toxic Media” and focus on the small positive news that is starting to eek out of the pack and eventually will beging to take over and lead the news and assist in building consumer confidence.   The hardest part is going to be patient for that change to come about.  But patience, ear plugs and the mute button on your remote control will pay off sooner.

Robin Weirich CBW

e-PropertyLinks

Mortgage Help On The Way Says Obama

Obama, has made fighting the country’s economic & financial crises a top priority of his administration, called on the U.S. Senate to approve an economic stimulus bill that the House of Representatives passed this week.  Obama promised Saturday to help lower American mortgage costs with a new plan, that would revive the financial system and “get credit flowing again.”   ( OK, I am game for this, but please tell me how we are going to accomplish unraveling a mess that has taken nearly a decade to create?  RW )

As economic conditions get worse the Obama said new strategies were coming to address the country’s ills.  “Soon my Treasury secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families,” Obama said in his weekly radio address.

“We’ll help lower mortgage costs and extend loans to small businesses so they can create jobs.” Obama did not offer specifics about the new plan or say when it would be unveiled. His chief spokesman, Robert Gibbs, said on Friday that the White House would hold meetings next week about financial industry regulation.  ( I think America and those of us effected both by our own personal financial delimas, but also those of us who work with-in Real Esate and Financial industry are anxious to see this happen - RW )

Republicans, who opposed the president’s stimulus package of $800 billion, because of its spending priorities, propose a government-backed 4 percent fixed-rate mortgages for “any credit-worthy borrower,” Senate Republican Leader Mitch McConnell said.  ( I think a 4% fixed rate would definately help stimulate borrowers wanting to move back into the market, but we still have to address, declining values and very restrictive lending guidelines that have come up as a result of the financial crisis – RW )    “The availability of these low-interest loans would increase demand for houses significantly and low-interest mortgages would boost household income,” McConnell said in a separate radio address.  ( No kidding!  RW)

Obama said his plan would ensure corporate chief executives do not siphon away tax dollars to fund big bonuses, expressing outrage again at reports of big pay-outs in 2008 despite massive job cuts, financial losses and government bailouts.   “We learned this week that even as they petitioned for taxpayer assistance, Wall Street firms shamefully paid out nearly $20 billion in bonuses for 2008,” the president said.   “While I’m committed to doing what it takes to maintain the flow of credit, the American people will not excuse or tolerate such arrogance and greed.” The president said he would insist on “unprecedented transparency, rigorous oversight, and clear accountability” for funds that went toward stabilizing the financial system.   ( While I feel this is greed by CEO’s, this has no direct impact on what is effecting the average consumer and needs to be dealt with by each company on it’s own and I feel is just a hot button to rile anger out of the general public. RW )

Obama said he would work with both political parties to ensure that a strong stimulus bill eventually made it to his desk. “Americans know that our economic recovery will take years — not months,” he said. “But they will have little patience if we allow politics to get in the way of action, and our economy continues to slide.”  ( I think Obama has great support and conviction in his ideas for America and the general consumer, but time will also be the true healer of our current economic issues in addition to his new policies.  RW )

Robin Weirich CBW e-Propertylinks

Take this TARP and shove it? Do Tell….

Ok….so there is some interesting reading.   It would appear that the “oh so wanted TARP money” isn’t so wanted anymore by some Banks.  However, I am sure for those who “insist” they want to   Some major financial firms are getting anxious about giving back the billions in U.S. government rescue funds they took hold of late last year.  David Viniar, Goldman Sachs’ (GS, Fortune 500) chief financial officer, made headlines Wednesday when he voiced that very sentiment to attendees of a Credit Suisse conference, saying it would be easier for the company to run its business if it could pay back the $10 billion in capital it received from the government last fall.  And in a statement to CNNMoney.com Thursday, Bank of New York Mellon (BK, Fortune 500), which received $3 billion last year, said it was looking to redeem the government’s investment “as soon as is practical.”

return the funds for reasons I am going to assume it places too much Big Brother Eye on them and accountability for the funds.. there will be a dozen standing in line with their hands out in their place!  Below is the highlights of an article on CNN ( Robin Weirich )

These comments come at a time when public distaste for the nation’s banking industry is boiling over. Taxpayers are seething over the fact that major financial firms continue to pay lavish bonuses and make seemingly frivolous purchases after getting government aid.

Earlier this week, President Obama struck back, announcing that the government would limit executive pay for any institution that accepts government financial aid in the future from programs such as the Troubled Asset Relief Program, or TARP.  ( Ooh… I sense part of the problem may be in that statement!  Cap Executive Pay at this time?  What could they be thinking!  Now, they don’t want the money?  Hmmmm….  smell funny to anyone?  Robin Weirich ) 

Fearing that lawmakers will make further demands, it’s no surprise that Goldman may want to free itself from more regulatory influence. ( Do they need to say anything else?  Robin Weirich )

But Goldman, or other banks for that matter, can’t just simply write the government a new check for the money they received last year. And even if they could, it might not be a good idea.

Goldman Sachs and the other top banks that were recipients of the first round of TARP funding, including State Street (STT, Fortune 500), Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Bank of America (BAC, Fortune 500), weren’t exactly given a choice about signing up when the program was first announced in October.

Federal Reserve chief Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair defended the move at the time, saying it would help stabilize the shaky banking industry.  ( We know how popular Bernanke is!  Robin Weirich )

Credit market conditions may have improved somewhat since then, but it remains to be seen whether Goldman Sachs, or any other leading bank for that matter, is indeed healthy enough to shun government assistance and go it alone.    Mark Lane, an equity research analyst who tracks Goldman Sachs and rival Morgan Stanley (MS, Fortune 500), which also received $10 billion in TARP funds, at Chicago-based investment firm William Blair & Co., is one disbeliever.  “[Goldman] cannot fund their business on an unsecured basis,” he said “To say we don’t need TARP funds doesn’t make a lot of sense to me.”

Last quarter’s sharp downturn in the economy and dour capital markets activity rippled through the banking sector, resulting in billions of dollars in losses for many firms, including Goldman Sachs. Shares of most major banks have tumbled this year, as a result.    What’s more, under the terms of the Treasury’s capital purchase program, a bank can only buy out the government’s stake as long as the money comes from an equity offering of a similar amount that meets government approval.  ( Oops!  Robin Weirich )

And in these market conditions, it seems highly unlikely that banks would be able to raise that much capital.  So many investors have gambled on U.S. financial firms over the past year and a half, only to watch those shares suffer another steep decline just months, or even weeks, later. In addition, an offering of new shares would cause substantial dilution to the value of the holdings of existing shareholders, something that banks may not want to risk.

Ultimately Goldman and other banks simply don’t like being susceptible to the government’s bidding, according to one hedge fund manager, especially as the White House gears up to unveil its latest efforts to deal with the financial crisis on Monday.  “What it really comes down to is Goldman Sachs does not have control of its own destiny,” said James Ellman, head of San Francisco-based Seacliff Capital, a hedge fund specializing in financial services. “The President of the United States does and the President of the United States will tell us in 3 to 4 days what Goldman Sachs’ options are.”  ( And we are all very anxious to hear them, well except maybe some TARP recipients.  Robin Weirich )

Robin Weirich CBW

Your Mortgage Is Rejected. Don’t Shoot The Messenger!

 What do you do if your friendly lender, invites you to sit down and apply for a mortgage, the very politely hurries you out the door empty-handed leaving you puzzled as they go and wash their hands and wipe off the chairs you were just sitting in!  Well that is a bit extreme and you can read a previous Blog I wrote some time back regarding my dislike for credit scores, at:  Caution Drama Queen Just Ahead  

Now please don’t take the shove out the door personal. The Mortgage Bankers Association, or MBA, estimates that about half of all new mortgage loan applicants are being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications suffered a 10% point drop, from 63% in the first half of 2007 to 53% in the first half of last year. Now further tightening of credit standards means at least half of mortgage-seeking consumers can’t squeeze through to acceptance, says the MBA.

Instead of wondering if you forgot to turn in your last video you rented, thus causing this problem; insant anger, denial or any of the usual emotions associated with rejection, the consumer who is intent on buying or refinancing should adopt a pragmatic approach, since clear-eyed determination may eventually land them a loan and they have NO choice.. so here’s how.

First start with getting to the bottom of the real reason.  If you’ve submitted a formal application, federal law dictates that you’re entitled to a formal rejection.   ( You will be surprised how many firms fail to follow through with this compliance item  Robin Weirich )  Expect an “adverse action” notice, spelling out the reasons for turning you down, such as you forgot to turn in the video on time..  ( kidding, well sort of!  Robin Weirich )

Nine Tips for Mortgages in 2009  /  How to Read Your Credit Report  /   Mortgage Basics  /  Get Your Free Credit Report

If your home’s CURRENT value isn’t the issue, then may be your personal credentials, such as your creditworthiness, work history or debt load.  When credit is the issue ( better toss in the towel until the industry wide shake up finally calms down and lenders regain confidence!!  Robin Weirich ), an adverse-action notice is required, naming the credit reporting agency that provided the data on which the lender based its decision, according to Federal Trade Commission rules. You’re also entitled to a free credit report; see the FTC Web site for more information. 

Given the odds of an approval, a lender may not require you to pay a few hundred dollars to submit a formal application, which includes the cost of a professional appraisal on the property. Instead, they may pull a credit score, letting you what you’re likely eligible for.  ( If you work with a seasoned Loan Broker, you should be able to determine all of this “without” incurring any cost other than if you run your credit report through their agency and or if you and your Loan Broker is having a tough time coming up with Value, in which case your Loan Broker, should be able to communicate with a reputable appraiser to determine value before a site visit, this will keep your cost at a minimum.  You should always question up front fees.  Robin Weirich )

Fixing the problem is next!  Qualifying for a mortgage isn’t a black & white issue, not that is ever had been. Instead, a different loan, with varying or adjustable rates may be available.  If you don’t qualify at 5.5 percent, you may be able to qualify for a loan at 6 percent or 6.5 percent or even greater depending on your credit history.   However, for many borrowers, refinancing, a need a certain rate to reach the monthly payment is the only way for a loan to make sense for them.  You shoulld note that not only are rates higher for risky loans, but there are now upfront “point” charges dictated by Fannie Mae and Freddie Mac, the two big mortgage guarantors currently under government control.    To learn more read:  Look at other options…  I want to hear your opinion on Credit and Credit Scores!  I am not a fan of the credit scoring system having worked in the financial industry long before scores were ever adopted.   Please note that one sure way to help avoid these types of issues in advance is to work both with an experienced Loan Broker and Real Estate Agent. 

Robin Weirich CBW

 

Origins of the Financial Crisis – Then and Now and what’s next?

I  wanted to pass along, what I felt is a very ‘Snap Shop” of the subprime meltdown and some of the key players involved.  While this does not cover everything, it is a reminder of what we have been thru over the past 18 months and the 24 – 36 months we yet have to go to dig ourselves out of this.  I would appreciate ALL your comments and ideas for the follow up to this Blog as any and all Real Estate and Finance information we can pass along is a helpful tool in navigating today’s real estate market..   Robin Weirich CBW. 

 House of Cards and the Sub Market  For the full article – below are highlights. ( Taken from CNBC )

INSIDE AMERICA’S SUB-PRIME MORTGAGE CRISIS

The Buyers
Cynthia Simons craved a better life for her family and wanted to leave the crime-ridden area of Compton, Ca. She thought her prayers were answered by a mortgage broker from her church who found the family a house in a safe neighborhood. 

Simons dream house was too good to be true 

 

The Lenders
Lou Pacific worked for Quick Loan Funding.  The company targeted people who couldn’t afford a down payment and had poor credit…so-called “sub-prime borrowers.” With no shortage of eager borrowers, business was booming and Quick Loan made millions of dollars.

Pacifica on what took place at Quick Loan Funding 

 

The Investors
In a rare interview, CNBC’s David Faber speaks with one of the few savvy investors who bet against the mortgage-backed security fever – Dallas’s Kyle Bass – whose hedge fund soared 600% in just eighteen months.

Bass on his experience 

 

The Federal Reserve
Former Federal Reserve Chairman Alan Greenspan defends decisions he made that critics say laid the groundwork for the crisis. Greenspan also admits that he was puzzled by the more complex mortgage-backed securities on the market.

Greenspan on what could have been done to prevent the crisis. 

 

Then and Now!  Check it out…   Robin Weriich CBW

 

 

 

 

 

 

Interesting Article to Pass Along

Banks Win HVCC Fight — by a Knockout 

 ( Taken from National Mortgage News On Line )

The way mortgage brokers are feeling these days they’ve lost the HVCC war and banks have won it and it’s probably just a matter of time before the entire brokerage sector evaporates into thin air. That’s the worst case scenario. The final chapter has yet to be written for brokers, who have bounced back before from what looked like certain destruction (remember 1994?). But the new ‘Home Valuation Code of Conduct’ rule that went into effect earlier this month is certainly a win-win for the nation’s mega-lenders — especially those with appraisal management firms .

Which mega-banks have AMCs? It’s the big four of residential finance: Wells Fargo, Bank of America, Chase, and Citigroup, all of which (of course) are beneficiaries of TARP money.

And what exactly is an appraisal management firm and what do AMCs have to do with the new HVCC? First let’s talk about the HVCC. The way loan brokers see it it’s a regulation jammed down the throat of the GSEs by New York attorney general Andrew Cuomo who (sort of) sees brokers at the crux of the nation’s mortgage meltdown.

HVCC prohibits any and all loan brokers from ordering appraisals on a home whose funding they are facilitating. Just to be fair, HVCC also prohibits retail loan officers at mortgage banking firms (including banks and thrifts) from ordering appraisals. The fear is that there could be a “conflict of interest” because a broker or LO might be able to influence the home valuation by choosing an appraisal firm that’s friendly to them — one that can “bring in” the appraisal so it doesn’t screw up the house sale because said appraisal is less than the home’s sale price.

But wait, HVCC allows the underwriting department of a retail lender (a bank, for example) to order the appraisal. And as we all know there is a “Chinese Wall” between the retail LO and the underwriting department. Right? Correct — and that’s why at Christmas time LOs give nice bonuses to their favorite (read: compliant) processors.

But there’s more: HVCC allows a retail lender to obtain an appraisal through an AMC even if that lender’s parent owns part of the AMC. Banks owning part of an AMC that’s doing the appraisal for them? Sounds like a conflict of interest to me. Oh, and brokers have to pay AMCs because only AMCs can order appraisals; that is, if you’re a broker.

If the regulators wanted to get HVCC right they would ban banks (thrifts, etc.) from owning AMCs outright. Banks should be allowed to have inhouse appraisal departments to review appraisals — but not to perform them. In my mind that task only should be done by an independent arms-length appraisal firm. Then and only then can the system have the appearance of being “clean.”

Then there’s the whole mystery of what exactly an AMC is. I asked the question of Bill Garber of the Appraisal Institute in Washington, a trade group that represents appraisers. “HVCC doesn’t define AMCs,” he told me. Also: no one regulates AMCs either. (How did that one get pass AG Cuomo?)

Legislation is pending in Washington that would both define AMCs and set up state regulation of these entities. Hopefully, it will pass. But in the meantime brokers and retail LOs can’t order up appraisals. Marc Savitt, president of the National Association of Mortgage Brokers, is hopping mad about HVCC because every time he facilitates a loan his shop has to pay $150 to an AMC. He can either front the money himself or ask the consumer for it. A retail loan processor can order an appraisal using an AMC that his parent owns a piece of. Sweet.

This comes from a Connecticut-based mortgage broker:  “We are not operating on a level playing field. Processors at mortgage banking firms are allowed to interact with appraisers. It is only brokers who are cut off entirely. There are mortgage banking firms out there who are actively and aggressively now recruiting LOs from brokers, saying they do have to comply with HVCC. What a mess!”

There’s one silver lining (possibly) in all this HVCC hoopla. According to AI’s Mr. Garber, the reg expires in 18 months and Fannie Mae and Freddie Mac can do whatever they want after that. But will loan brokers still be around? We’ll see. They were counted out in 1994 when their prime loan refi business evaporated. But then they invented the subprime mortgage business as we now know it (for good and for bad) and zoomed up to a 60% share. Can they do it again?

OTHER INTERESTING HVCC / APPRAISAL RELATED ARTICLES

Appraisals Muddy Housing Recovery

Dealing With HVCC Misconceptions

Thank  you,

Robin Weirich CBW e-PropertyLinks