Webcast: “Mortgage Origination: The Impact of Recent Changes on Homeowners and Businesses”

Wednesday, July 13, 2011 2:00 PM in 2128 Rayburn HOB
Insurance, Housing and Community Opportunity

Click herefor the Archived Webcast of this hearing. Mark Savitt's testimony beings at approximately 1 hour and 35 minutes into the hearing.

Of particular interest to appraisers are the testimonies of:

Mr. Marc Savitt, President, The Mortgage Center, on behalf of the National Association of Independent Housing Professionals

Ms. Sara Stephens, President Elect, Appraisal Institute

Mr. Don Kelly, Executive Director, Real Estate Valuation Advocacy Association (REVAA), on behalf of REVAA and the Coalition to Facilitate Appraisal Integrity Reform

You can click on the Author Links above to read their official "prepared" testimony.

Excerpt From Marc Savitt:

 

"Unfortunately, like its predecessor HVCC, appraiser independence has already proven to be a failure. Appraisers are still being pressured and blacklisted with no mechanism in place to report offenses. Moreover, Appraisal Management Companies (AMC’s), have found a "workaround" enabling them to set factious "Customary and Reasonable fees," that are anything but customary and reasonable. In fact, appraisers are now being paid less than under HVCC."

Excerpt From Sara Stephens:

Real estate agents have reported that consumers are paying higher appraisal fees in recent years,yet according to our members, appraiser fees have declined by as much as 40 percent

How can this be the case? The answer is simple – lenders have passed through appraisal administration expenses onto the backs of consumers through the Appraisal line of the HUD-1.

Current RESPA interpretations allow for, and even promote, "bundled" fees to consumers, whereby appraisal management fees are lumped together with actual appraisal fees. When a lender utilizes an AMC, HUD’s current interpretation of RESPA dictates the fee paid to the AMC – not the actual appraiser – be disclosed to the consumer on Truth and Lending disclosures and listed on the HUD-1 settlement statement As a result, a perverse incentive exists for AMCs to seek reductions in appraisal fees to carve out larger profit margins.

Don Kelly formerly represented the Appraisal Institute but now represents REVAA.  His testimony has an entirely different tone NOW!  Here's who he presently speaks for . . . AMAZING!!