Posts Tagged ‘FHA appraisals’
FHA Loans
In March, we wrote a post that, in part, discussed what distinguishes an appraisal for a Federal Housing Administration (FHA)-insured loan from an appraisal for a conventional loan and explained that the appraisers at Present Value are certified to conduct appraisals for both types of loans. Click here to read the full post.
This week, The New York Times published an article discussing the effect that FHA loans currently are having on home sales. The article says that three years ago, FHA-insured loans made up 2% of the market and now, 25% of the market is backed by FHA-insured loans. That’s a huge jump in a very short amount of time. Clearly, the FHA’s plan to help potential buyers secure financing is working.
Traditionally, FHA-insured loans were obtained by people with less-than-perfect credit scores. Banks were more comfortable lending to riskier borrowers if the loans were insured by the government because the bank would be protected from a loss should the borrower default on the loan. But because financing is so difficult to secure right now, people who would have gone after a conventional loan in the past now have to look into FHA-insured loans to receive the financing required to own a home. To read the full article and see how this trend is affecting New Yorkers, click here.
By: Present Value
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 through a third party, such as an appraisal management company.
If you’re seeking an FHA appraisal, your interaction with Present Value won’t change. Because the HVCC changes don’t affect FHA appraisals, lenders can still contact Present Value directly. And more good news – if you’re seeking a conventional appraisal, your interaction with Present Value will also remain the same. Present Value LLC is both an appraiser and an appraisal management company, which means that it can play the role of the third party required by the HVCC changes and save you the step of having to seek out a separate appraisal management company. One of the principles to which Present Value adheres is to provide the best possible customer service. As these changes go into effect and people begin to navigate what the changes mean for them, we hope that the lack of disruption in service you’ll experience by working with Present Value will prove our dedication to this principle.
In other news, have you had the chance to check out our introductory video? Click here to watch.
By: Present Value
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 estate appraisal through a third party, such as an appraisal management company.
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