10/12/2009

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Why is it important to get rid of the new “Home Valuation Code of Conduct” or HVCC? Why is important to get rid of HVCC? We’ll let’s start at the beginning shall we…? A long, long time a ago in a distant parallel universe someone got the idea that loaning money to unqualified buyers and then reselling the loans as investment vehicles was a great IDEA! So good in fact, that if you could fog up a mirror and one of the three blind mice could vouch for the properties value that you were buying than you could get a loan. And not just any loan I mind you! I loan that is guaranteed to self destruct the minute you walk off the closing table! But hey, this is a parallel universe were Bankers with MBA’s and Greenspan rule all the dark forces around us. And everyone knows that home values never go down! Crazy Talk! Okay, fast forward to today and our reality. Our new bosses have to now prove to the world that they are not asleep at the wheel like the old bosses (does everyone know this song... In with the new boss... Same as the old boss… love that song okay back to the story). So, rules started flying off the shelves. Now you need to give fluid samples and swear a triple swear pinkie shake before a bank will even look at you. Our new bosses also imposed new appraisal rules just to make sure there is no funny business with home values. This brings me to the HVCC program. Did I lose you? Are you wondering what appraisals had to do with banks giving out bad loans and then reselling them? Fear not, so did everyone else in the Real Estate business! So, you are probably thinking “what’s the Big Deal with strengthening appraisal rules?” I say nothing! Having one of...