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Archive for March, 2009

March 31, 2009 Present Value LLC and the upcoming HVCC changes

Earlier this month, we wrote about the Home Valuation Code of Conduct (HVCC) changes that will go into effect on May 1 of this year. You can read the full post here. Essentially, the changes state that lenders seeking a conventional appraisal, as opposed to an FHA appraisal, will be required to find an appraiser [...]

March 26, 2009 Reverse Mortgages: The Story of HECMs

  Many older homeowners are turning to “reverse” mortgages, which allow them to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills. The money can be used to pay for health care expenses, pay for home improvements, pay off a current mortgage, [...]

March 24, 2009 Public-Private Investment Program

As part of President Obama’s economic recovery plan, the President and the Secretary of the Treasury, Timothy F. Geithner, announced the details of a public-private plan to buy up banks’ “toxic assets” and auction them off. Administration officials outlined a three-part Public-Private Investment Program that offers private investors vast amounts of cheap, taxpayer-supported financing for [...]

March 19, 2009 Why use a certified appraiser?

A survey was recently conducted at an American Institute of Certified Public Accountants Conference in which more than 100 CPAs said that when assigning value to a business’s tangible assets, like machinery, one of the biggest problems they face is liability risk as a result of invalid information. This is one of the reasons why [...]

March 17, 2009 FCA Lending

Most people are probably unfamiliar with the Farm Credit Administration (FCA). Well, if you don’t have a stake in agriculture in the United States, it stands to reason you’ve never heard of it. The FCA is a federal agency, reporting to the Executive Branch of the U.S. government. The agency oversees the Farm Credit System, [...]

March 12, 2009 Potential for Increased Valuation Fraud in Down Economy

In this time of economic hardship, many people are looking to or are being forced to liquidate their assets. The potential for scams regarding asset valuation will only increase, as will the number of individuals who fall victim to these schemes. In addition to individuals being taken advantage of, other larger-scale problems can arise from [...]

March 10, 2009 Upcoming HVCC Changes

The Home Valuation Code of Conduct (HVCC) dictates rules regarding the interaction between appraisers and the lending industry. A copy of the full HVCC can be found here. On May 1, 2009, changes to the HVCC will go into effect. The changes state that rather than going to an appraiser directly, lenders must order a real [...]

March 5, 2009 Why an Appraisal?

Business owners, lawyers, bankers, bank examiners, and CPAs all ask the same question: “What’s it really worth?” Figuring out the market value of one’s machinery and equipment requires a professional with specialized skills and the expertise and certification to determine true fair market value, liquidation value, salvage value, or replacement cost. It makes sound financial [...]

March 3, 2009 SBA SOP 50 10 5(A) Changes in Effect This Week

The Small Business Administration (SBA) announced revisions to SOP 50 10 5(A) that went into effect on March 1, 2009. Because the number of 7(a) loans being used for business acquisition has increased, the SBA determined that more specific guidance on the financing of goodwill was appropriate and made additions to SOP 50 10 5(A).   [...]