No HVCC for FHA Loans and AR Member Mike Mueller on TBWS

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Mortgage and Lending with Los Angeles & Ventura Counties in CA

I subscribe to the daily webcasts of Think Big, Work Small (TBWS), which is hosted by these two guys, Brian Stevens & Frank Garay.  TBWS was founded a couple of years ago by a bunch of real estate and mortgage people who wanted to teach others in the business how to work smarter to grow their business.

Today's video was especially informative.  There is a segment where FHA states that they will not be subjecting the HVCC appraisal process to FHA loans because, and here's the best part, IT DOESN'T WORK! 

So all those lenders out there that are subjecting FHA loans to HVCC (I've run across a few), you better rethink your business practice with this particular process.  I would love to see someone challenge this one in court.

There is also another segment on AR member, Mike Mueller, and his post Banned by Facebook!  Check out Mike and his post - it's really good info to know for those who think they can conduct their business on FB.

Anyway, here is today's video and I hope you enjoy it as much as I did.  I want to also suggest checking out some of their more recent ones too.

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~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 Donne Knudsen

Realtor® - CalState Realty Services

DRE#: 01364050 / NMLS#: 249822 

 

805.2069123

 

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Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance

Los Angeles County  --  Ventura County

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Show All Comments
Rainmaker
407,278
Terry Miller
Miller Homes Group and Tyler Apartment Locator
Miller Homes Group

Yeah, it was a huge disaster. Surprise, the goverments Idea. Wow maybe we can get something done now.

August 25, 2009 09:25 AM
Rainmaker
578,379
Robert Rauf
HomeBridge Financial Services (NJ)

The appraisal "fun" is so not necessary. But we are stuck with it for a while.  I had a client call me today to ask for the appraisers number since they are playing phone tag. and something that simple I cant give them since there is the darn middle man involved. It is a broken system!

As far as FHA and HVCC, lenders are allowed to be stricter than FHA guidelines. I have even seen some lenders that say 640 minimum credit score for FHA loans. and FHA does NOT have a minimum score... yet all lenders have put one in on their own. We live in a 620+ world now.

August 25, 2009 09:37 AM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Terry - I strongly suspect that the HVCC moratorium this is currently being talked about truly happens.

Rob - Yes it is true that lenders can add their own overlays to FHA producst but this particular overlay is sooo wrong on so many levels.  I really want to see someone challenge this practice of subjecting FHA to HVCC.

Personally, I don't feel the 620 minimum fico overlay is such a bad thing.  Thx for stopping by guys; I appreciate it.

August 25, 2009 09:41 AM
Rainer
63,819
Amy Salisbury
West Virginia Realtor/Jefferson/Berkeley
Leading Edge Properties

Donna - Somehow I got on the TBWS subscription list.  These guys are pretty funny, but they give great info and food for thought!  As far as the HVCC debacle...here's hoping its the beginning of the end!

August 25, 2009 09:51 AM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Amy - One of my Realtor friends actually turned me onto them a few months ago and I've been watching them ever since.  Some days they're a little too wacked out for me or I'm just not in the mood for them but other days, they have me ROTFLMAO.  Thx for stopping by: I appreciate it.

August 25, 2009 10:32 AM
Rainmaker
1,237,398
Gene Riemenschneider
Turning Houses into Homes
Home Point Real Estate

They are great.  I wish I could be that funny.  I subscribed.  Oh and HVCC sucks and I suspect if you looked hard enough there is a lot of green being made by someone with connections.

August 25, 2009 12:10 PM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Gene - There is no doubt in my mind that the big, national banks that own AMC's are raking in the bucks off what they are making for the HVCC appraisals.  We already know the AMC's are taking their profit and consumers are paying more and appraisers are getting paid less.  Oh, and don't forget, THIS IS ALL TO PROTECT THE CONSUMER!

Don't you just love that one?  Thx for stopping by Gene; I appreciate it.  :)

August 25, 2009 12:23 PM
Rainmaker
808,064
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

Donne:  So it's great with the FHA HVCC announcement but when does that go into effect or being implemented?  I have a listing now stuck with a bummer FHA underappraisal.  OR not allow any more FHA appraisals with the new guidelines.  Your thoughts on this please?

August 25, 2009 03:39 PM
Rainer
26,616
Michael Rohde
Sunstreet Mortgage LLC. Licensed Mortgage Professional

Hi Donna, Great post. I think you did a much better job than I did last week and by the way, I really hope HVCC goes away sometime soon. What a pain in the backside! Take care

August 25, 2009 07:40 PM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Lyn - FHA has never subjected their loan products to HVCC however, FHA does allow their approved lenders to include their own overlays.  Most of my FHA approved lending sources are NOT subjecting their FHA loans to HVCC but I have run across a few of my lending sources who are subjecting ALL of their loans to HVCC.  Needless to say, I made sure those sources knew they wouldn't be getting any of my FHA business.

Unfortunately, it sounds like your listing got stuck with a lender who is subjecting their FHA loans to HVCC.  That's terrible and I'm so sorry to hear that.  As for not allowing anymore FHA appraisals, I don't think that would be wise.  If you refuse to allow FHA offers, you would be cutting off your seller and your listing from a HUGE market of potential buyers.  For future reference, when working with FHA buyers, ask who their lender is and make sure their lender isn't subjecting their FHA loans to HVCC.

August 25, 2009 08:00 PM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Michael - For all of us, I too hope HVCC goes away.  I've been hearing about a moratorium but so far it's just talk.  Fortunately for me and my clients, I'm an FHA mortgage gal; I haven't done a convential loan since December 2008.  I did have a couple of clients who I tried to get approved for fannies DU refi plus but couldn't because they were too far deep and the 105% just wasn't very helpful.

August 25, 2009 08:04 PM
Rainmaker
808,064
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

Donne, I stopped back and thank you for your good advice.  Actually I did a market survey and it's 1/3 FHA 2/3rds CONV at this point.  I guess I'll be making some phone calls.

August 26, 2009 06:22 PM
Ambassador
1,859,287
Judi K Barrett
Broker/Owner, Integrity Real Estate Services -IDAB
Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma

Donne, it seems that there is always something that we have to contend with these days that just does not make any sense.  Thanks for the link.

August 26, 2009 06:50 PM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Lyn - It does seem like we (Realtors & LO's) are working harder than ever these to make it all happen.  I spent the better part of my day today making calls and making sure I had all of my prior to doc conditions in by a certain hour so that I have a better chance of ordering docs and closing one of my escrows by the end of the month.  My ear is ringing from all the phone work and I still feel like the phone is hanging off my ear as I sit here typing.  All in a days work.  :)

Judi - You said it!  Some days the insanity is so outrageous you just have to laugh so you don't cry.  Anyway, I'm glad you liked the video.  These guys are a little crazy sometimes but they do seem to be able to put the craziness of the industry in perspective.

Thx for stopping by ladies; I really appreciate it.  Have a good evening.  :) 

August 26, 2009 07:05 PM
Anonymous #15
Anonymous
Anonymous

Donne, I posted on this too. Amen to David Stevens for his honesty and sound judgement. Like you said though the big banks that own the AMC's are raking in the bucks and they're not about to give up that gravy train so easy. In the meanwhile we'll all get to scramble through this. In the big picture the problems HVCC causes in the lending process has an impact on our economy and that will have to be addressed or dealt with, sooner or later.

September 10, 2009 09:13 PM
Rainmaker
598,840
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

Gynell - "they're not about to give up that gravy train so easy".  ISN'T THAT THE TRUTH?

I'm sure the big, national, retail banks that own AMC's will fight that to the bitter end.  I'm sure HVCC has been a godsend for them.  As for when they will be dealt with, I'm hearing it'll be sooner rather later.  Let's hope they get what they have coming to them.

Thx for stopping by; I appreciate it.

September 10, 2009 09:51 PM
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Rainmaker
598,840

Donne Knudsen

CalState Realty Services
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