In Response to “Appraisers Under Attack”

In response to appraisers under attack - regulationsIn response to Frank Garay and Brian Steven’s commentary (see video below), on the lawsuit against TriMavin AMC over alleged appraisal independence violations, an anonymous commentator posted the following:

There are a number of posters here who need to re-take their CE classes including the moderators. Here are the reasons the entire industry is severely broken. I mean from the Realtor to the Appraiser to the Mortgage Lender.

First of all HVCC sunset folks – back in 2010. It was replaced with AIR (Appraiser Independence Regulations) and the Dodd Frank Act. Cannot tell you how irritating it is to me when so-called ‘professionals’ in the industry cite regulations that are no longer in effect. HVCC is no longer active – please stop referencing it.

Secondly, TILA regulations incorporated Appraiser independence and state the following:
1026.42 d(2(iii) “No employee, officer or director in the creditor’s loan production function, as defined in paragraph (d)(5)(i) of this section, is directly or indirectly involved in selecting, retaining, recommending or influencing the selection of the person to prepare a valuation or perform valuation management functions, or to be included in or excluded from a list of approved persons who prepare valuations or perform valuation management functions”.

The complaint states that the CEO of Stearns lending (an officer) and their loan officers and branch managers (production personnel) provided lists of appraisers to Trimavin to be included in their appraiser panel. Seems pretty clear cut that this is a TILA violation if this is proven to be true.

The moderators here are pretty inflammatory and extremely disappointing. You both seem to have attacked a woman who was a company compliance officer who reported lending violations and got fired for it. Kind of makes me wonder were your ethics are given that you have presented a very one-sided and clearly uneducated editorial.

For your edification, a Chief Appraiser or Chief Valuation officer doesn’t get a ‘piece of the pie’. Typically persons that hold this type of position are officers of the company and are compensated very, very well. They do not actually perform appraisals. Appraisals are completed by contracted appraisers or staff appraisers.

In closing, I think that Frank and Brian have been very irresponsible in their editorial and unfortunately very clearly demonstrated they do not have a strong grasp on the regulations. I would venture to say that this suit will catch the attention of the GSEs with whom Stearns deals with as well as the CFPB. If the allegations are in fact true, I think they are in for a very challenging defense.

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2 Responses

  1. Retired Appraiser Retired Appraiser says:

    HVCC was merely renamed friend. Appraisers continue to be raped by banks via their AMC companies.

    Who cares what you call it. HVCC, AIR, BS, etc. The most appropriate name however would be EXTORTION.

  2. Hugo Garofalo on Facebook Hugo Garofalo on Facebook says:

    Frank and Gary are dead wrong…please look at the GSE’s FAQ regarding selection of appraisers…Brokers nor employees nor anyone involved with compensation on a loan may provide a list of appraisers to a lender…what Sterns Lending was “allegedly” doing is unethical. Frank and Gary need to look up the definition of Valuation Management Function.


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In Response to “Appraisers Under Attack”

by AppraisersBlogs time to read: 2 min