HVCC Dying Soon
An amendment would sunset the scrutinized Home Valuation Code of Conduct (HVCC) obtained unanimous support from the House Financial Services Committee last week. The legislation was created by Rep. Gary Miller (R-CA), along with many calls on regulators to work together for more reasonable appraisal standards, while simultaneously elminating HVCC.
Loan originators would be able to order their own appraisals again instead of being abused by Appraisal Management Companies (AMCs). "I supportive of ensuring accurate appraisals, I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes. In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.” Congressman Miller stated.
Since the HVCC was implemented in May of 2009, appraisers have argued that it has cut salaries in half while destroying their hard earned relationships. Homeowners also complained in droves that appraisals are valued low, causing problems for those looking to refinance or sell their properties.
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Home Buyer Tax Credit Needs Boost. Stop Dabbling and Knock This Downturn Out !
Home Buyer Tax Credit Needs Boost to Stimulate
October 9, 2009
Simply extending the $8,000 first-time homebuyer tax credit will not provide much stimulus for the economy, according an IHS Global Insight economist. "The first time buyers who were going to use it would have used it already," said Global Insight economist Patrick Newport. Congress has to "expand it in some way to have any impact," he said. The Obama administration and congressional Democrats are discussing ways to create more jobs and stimulate the economy and a homebuyer tax credit extension is in the mix. The first-time homebuyer tax credit is due to expire November 30 and the National Association of Home Builders and others are pushing for an extension that expands the tax credit to all home buyers. NAHB president and CEO Jerry Howard says it would kick start the move-up market, generate more sales and construction, and create 350,000 jobs. But it would cost the government $30 billion to $35 billion for a full year. "To get the most bang for the buck, it is has to be in effect throughout the spring and summer home buying season," Mr. Howard said.
Home Sales Increase, Ownership Levels Flaten Out From Downward Spiral.
New home sales jumped 11% in June from the prior month and homebuilders saw a slow improvement in sales during the rest of this year. "Significant evidence has accumulated that we have hit the bottom," said Bernard Markstein economist at the National Association of Home Builders (NAHB). But NAHB has not called a housing bottom yet. They have concerns sales may drop off toward year end with the expiration of the first-time homebuyer tax credit.
The U.S. Census Bureau saw sales of new single family homes rise to a 384,000 seasonally adjusted annual rate in June and increase from a 346,000 rate in May. NAHB economists expect sales will run at a 390,000 rate during the second half of this year, up from a 347,000 rate in the first half.
The homeownership rate appears to have stabilized at 67.4% after falling for three consecutive quarters and the number of vacant homes for sale has dropped by 14% since the start of this year, according to a government report. The Census Bureau reported that the number of vacant homes on the market fell to 1.92 million in the second quarter, down from 2.23 million at yearend 2008. The homebuilders have been waiting for this inventory to drop back to its historical norm of 1.25 million to 1.5 million, because the overhang puts downward pressure on new home prices. The Census Bureau also reported that the U.S. homeownership rate edged up to 67.4% in the second quarter from 67.3% in the first quarter. In the second quarter of 2008, the homeownership rate was 68.1%. Meanwhile, the homeownership rate for blacks was 46.5% in the second quarter, down from 47.8% a year ago, while the homeownership rate for Hispanics was 48.1%, down from 49.6% a year ago.
