Epain Homes

Is this cool with the by-laws?

Let’s buy two!

I was watching CNN from my home office (kitchen) and they have reported this afternoon on a Senate “tentative agreement” to extend and even expand the first time home buyer’s credit through June/July of 2010.

Read the Wall Street Journal report here

The $8,000 will remain for “first time buyers” and we may even see $6,500 for “second time buyers” (I’m still out).

Congress will have to vote of course, but I can’t see them denying something tangible to their constituents. The credit has been given “credit” for moving housing, which is important to John Q. Public.

Since the process of obtaining an appraisal for a residential real estate transaction has changed earlier this year – it has caused some aggravation and unnecessary grief to home owners, Realtors, and some loan officers. Since the Home Valuation Code of Conduct (HVCC) now has a track record, the market is beginning to question the new policy’s effectiveness.

Because of these questions that are being asked by homeowners, Realtors, and bankers – Congressional members are beginning to discuss options and if the new Home Valuation Code of Conduct (HVCC) is set up correctly. The attached link raised the questions from Congressional legislators – is the cost of obtaining an appraisal today higher and are today’s appraisals less accurate under the new HVCC policies?

The current policy of the HVCC states no person tied to the real estate transaction can order or speak to (influence) the appraiser within residential real estate transactions. Therefore – the Loan Officer, Loan Processor, Loan Underwriter, etc… can not select the appraiser, speak to the appraiser regarding values or comparable properties, nor challenge directly the appraiser on the value or any errors on the report. Instead all concerns and/or errors must go through an appraisal management company – which initially accepts the order for the appraisal, selects the appraiser, and accepts the appraisal report from the appraiser.

If the initial report turned in is inaccurate, presents a low value, or has any errors – the Loan Officer and parties involved with the transaction must go through the management company to contest the appraisal report for changes. This process has been viewed to cause the appraisal reports to come back inaccurate and at a higher cost. The HVCC also prohibits the use of one appraisal report to be used by multiple lenders – which in the end may still be a good thing.

In my opinion – it’s perfectly fine to have this system of checks and balances in place. But it should not cause more appraisal inaccuracies nor drive up the cost of appraisals for the consumers and lenders involved.

More importantly, impediments in the appraisal process can hurt area small business if they can’t refinance, sell or acquire real estate. Not to mention, it hurts business in general for all parties involved if appraisals impede transactions.

Attached is a great article and how some Congressional legislation may come into affect to change this recent adjustment to the residential lending industry. Which will have an affect on today’s Small Business community as well.

From CNBC Could HVCC Be History??

For more questions on appraisals and lending please contact Brian Cumpton of RWF Mortgage. Just click the link.

After showing one of my listings in the Graceland West neighborhood of Chicago yesterday, I took the opportunity to get a few autumn photos of the single family homes you will find. There are many stately manors that line North Greenview from West Irving Park Road to West Montrose. Not to be outdone, several more modest stucco and frame bungalows snuggle up to their street mates. We can even find some new construction in progress.

The 4 blocks of Greenview here tend to have the larger lots, but the east west streets are lined with some terrific homes as well. On those blocks, you will also see a welcomed mix of attractive three to six-flat buildings in between North Southport and North Greenview. Most have been converted to condos and are individually owned by the occupants.

When looking for a personal home, I prefer a mid-century modern or prairie style design.

Jillian and I spend a lot of time with the family in Lincoln Square. Tonight was one of those special warm fall evenings with our kids and neighbor friends.