On May 1, 2009, the government put in to place the HVCC appraisal law which stands for Home Valuation Code of Conduct, which was supposed to help to keep agents and mortgage brokers from being able to talk to appraisers and keep them from swaying the value they put on a home.
But, within that law, there were some things put in by (I’m guessing) some very smart bankers. Now I believe they are being very predatory, almost even more than they were two years ago.
No, I don’t own a tin foil hat, but they are starting to look comfortable. You see, one of the lines in the new HVCC law was that once the appraisal is ordered it can’t be transferred to a new lender and another appraisal would have to be ordered.
What good does this do for the consumer? It keeps their mortgage broker from shopping for a better loan with a lower rate. Because even if they found a better loan, that mortgage broker and buyer would have to start the whole process over again and pay for another appraisal and ask for an extension that the seller, more than likely, won’t accept.
So, now that the buyer is stuck with a loan that isn’t the best loan for them and there is nothing they can do. They sit and wait for their close with their interest rate lock date slowly getting closer and closer.
I’ve looked at my company’s books over the past month and a half and what I discovered was of the loans that were required to use HVCC approved appraisers only one of them closed on time. All the others closed anywhere from 22-47 days later than their scheduled closed date.
Now, here is where the fun begins…
In talking to every one of the agents in those deals, every one of those buyers lost their interest rate locks during those 22-47 days and now were stuck paying anywhere from 3/8 to a complete percentage higher than they would have if they had closed on time. That, to me, is the meaning of predatory lending. The worst part is they could have possibly saved even more if their mortgage broker could have found a better loan during the time of inspection and close. But because of the HVCC law, they were unable to do that without adding additional cost and time to the close.
So, is your bank taking advantage of your clients by using the HVCC law and other underwriting delays to make buyers lose their lock?
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - Predatory lending is now even easier and banks are taken full advantage!
Predatory lending is now even easier and banks are taken full advantage!
0 comments • Steve Moore • June 25 2009 09:43AM203 Pickett Lane
203 Picket Lane, Mebane NC
$229,900
Located in the exclsuive Fairoaks neighborhood of Mebane NC. Custom cabinets by a master! Extensive crown moulding, extensive hardwoods. 3 Bedrooms & bonus can be used as a fourth bedroom.
0 comments • Steve Moore • March 06 2009 08:21AM1527 Holmes Lane, Mebane
Conveniently located between Greensboro and Raleigh/Durham. Like new with extensive hardwoods, large fenced back-yard, deck and patio. Also a wired, heated, air conditioned workshop with garage door. Feels like being in the country, but close to town and Interstate 85/40.
$234,900
0 comments • Steve Moore • March 06 2009 07:59AMJust the Facts about the Housing Stimulus
With news changing almost daily concerning the housing stimulus, it's no wonder that people are confused. I was recently appalled to discover that a tax-preparer was not familiar with the recent change to and $8,000 TAX CREDIT, for first-time home buyers. That tax preparer was stuck in 2008. The word is not sufficiently out there! Please check the link below .
http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home#taxcredit
This is real money that can be obtained almost immediately. Don't rely on someone else to take care of you financial well-being.
0 comments • Steve Moore • March 06 2009 07:47AMWhat New??
Change is inevitable. Change can be good. After almost three years with Exit Realty Carolina, I have moved my affiliation to Massey Real Estate in Burlington, NC. Changing companies is a major undertaking and I do not make that decision lightly. I believe that Massey Real Estate will offer me the tools to serve my clients even better than before.
Massey Real Estate is a lesson in what is right with real estate. Massey was in the real estate business for many years when the decision was made to leave real estate sales and concentrate on appraisals. Several years later, when a large company purchased two local companies, all of the best and brightest real estate agents from those two companies asked David Massey to re-open a company for them. The rest is history. The ethical leadership of David Massey has propelled Massey Real Estate into one of the leading companies in the region. Even in a "down" market, Massey's share of the market continues to grow. Something must be right. Two things make a real estate company, good agents with good leadership.
My goal at Massey Real Estate is to form a team of agents that will always exceed your expectations. Those potential team members are already identified and will be coming on board shortly.
Contact me for all your real estate needs!
Steve Moore
Massey Real Estate
Burlington NC 27215
336-263-0150
1 comment • Steve Moore • June 17 2008 05:54PMWhat's Going on in Mebane?
We all see the media bombardment of negative real estate and economic news several times a day, but things are not all bad. The geographic location of Mebane, NC has us at the forefront of growth. the former Arrowhead Golf Course is now being developed into a mixed-use community anchored by theAlamance Regional Medical Center facility. Tangier Outlets is said to be coming. A retail center of orer 1,000,000 suqare feet of space in in the planning stages, an upscale assisted living community is in the planning stages. Lowe's Foods has just opened a new store. Gregory Poole is construction a new building.
More residential development will follow closely behind. Now may be the best time ever to buy, expecially in the Mebane area.
For approximately the last five years we have been bombarded with offers from mortgage lenders to grant mortgage loans to people with "less than perfect" credit history. Now the results of that trend are evident. I have no crystal ball, but, in my opinion, now may be the best time in recent history to buy a home. Gas prices continue to rise and show no sign of abatement. Gas prices directly impact almost every segment of the economy, so you can bet that we are facing a round of significant inflation. Real estate has historically been the best hedge against that inflation. The good news is ---- if you have Good Credit and are Gainfully Employed, you can probably obtain a Very Attractive mortgage loan before home prices begin to rise again.
6 comments • Steve Moore • May 30 2008 09:10AMContent © 2009 Steve Moore (David Massey Real Estate). Design © 2009 ActiveRain Corp.
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