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The bank (or an appraisal management co.) is REQUIRED to order the appraisal, since that is the law. Property owners haven't been able to hire their own appraisers for loan purposes for many years.
When you use the word REQUIRED, you should cite your sources. You are wrong.
First, HVCC is not law. It's the guidelines a lender must adopt if they plan to sell the loan to Fannie Mae after March 1, 2008. This means, if a bank is a portfolio lender, the lender can and does order the appraisal directly with the appraiser. Loans already in a banks portfolio are also not subject to HVCC.
Each bank has their own written guidelines for removing PMI. Some will order the appraisal direct, some will provide the homeowner with a list of accepted appraiser. Your mileage will vary.
I purchased an apt complex in 2008 and got an appraisal. I recently got a mortgage on same property and was required to get another appraisal. The difference between 2008 and 2010 appraisal was $2000. Can I ask for my money back?
I purchased an apt complex in 2008 and got an appraisal. I recently got a mortgage on same property and was required to get another appraisal. The difference between 2008 and 2010 appraisal was $2000. Can I ask for my money back?
When you use the word REQUIRED, you should cite your sources. You are wrong.
First, HVCC is not law. It's the guidelines a lender must adopt if they plan to sell the loan to Fannie Mae after March 1, 2008. This means, if a bank is a portfolio lender, the lender can and does order the appraisal directly with the appraiser. Loans already in a banks portfolio are also not subject to HVCC.
Each bank has their own written guidelines for removing PMI. Some will order the appraisal direct, some will provide the homeowner with a list of accepted appraiser. Your mileage will vary.
The requirement of the lender/LO ordering the appraisal for Fannie backed loans goes back well before the HVCC was even thought of.
Actually back to FIRREA (1989), and even R41a (and b and c) for the old S&L's. Appraisers and banks/lenders are still subject to the rules of FIRREA which clearly state that lenders or their agents are the only ones allowed to order appraisals. Only on "federally related transactions", of course. Which means virtually all bank loans.
The bank (or an appraisal management co.) is REQUIRED to order the appraisal, since that is the law. Property owners haven't been able to hire their own appraisers for loan purposes for many years.
One of the basic tenants of FIRREA is that a borrower cannot have any involvement in ordering an appraisal that a federally regulated institution will use for lending purposes. This rule comes as a surprise to many investors who typically order their own appraisals; it also shocks a few employees at investors' favorite federally regulated lending institutions.
"Borrowers often don't realize that they can't order an appraisal any more. When they do, they expect that a federally regulated lender will accept it," says Harris "Bo" Simpson, CRE, MAI, a principal at Greystone Valuation Services. "Sometimes their contact at the bank itself doesn't even know this. There have even been instances where bankers have actually encouraged their clients to order an appraisal, only to find that their bank will not accept it simply on the basis of by whom it was ordered." "
Sure, the borrower couldnt order it, but many times i had a borrower ask me to use a specific appraiser so i would place the order for the consumer. That was before HVCC of course. So, prior to HVCC, the consumer could decide on who appraises their home.
Sure, the borrower couldnt order it, but many times i had a borrower ask me to use a specific appraiser so i would place the order for the consumer. That was before HVCC of course. So, prior to HVCC, the consumer could decide on who appraises their home.
No, they could not. Not legally.
I know it happened frequently, but it was against the "rules".
Sure, the borrower couldnt order it, but many times i had a borrower ask me to use a specific appraiser so i would place the order for the consumer. That was before HVCC of course. So, prior to HVCC, the consumer could decide on who appraises their home.
I think we're debating over semantics. Quite simply, a borrower is not allowed to go out and hire their own appraiser and use it for a federally related transaction (loan or mortgage) and expect the lender to accept it. FIRREA is quite clear on this. What you are saying is that you, as the lender, ordered the appraisal and not the property owner who merely stated their preference. You may have complied, but the borrower still didn't order the appraisal.
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