ing financing on a custom home without a firm commitment letter from a lender. We were able to provide that service to the builders and we grew from there. Based on the quality of service we were providing to the consumer, we were able to expand into the Realtor market. Over the years, our referral based experienced tremendous growth, to the extent that referrals contribute to the majority of our originations. How did you manage your duties of serving as president of a nationwide trade association such as NAMB, over the last year while keeping MACC’s operations running smoothly? I am very fortunate to have a great partner in Jo-Anne Lamorey at MACC. We started together in 1992, and have always complemented each other’s strengths and weakness. Jo-Anne is a strong producer. This allowed me to concentrate on my duties with NAMB at the national level and the day-today operations of the company without the responsibility of production. Without her, I could not have served as president. We are a small shop and someone had to keep the loans coming in and she did that for me.
“Enforcement is the key to the future of our industry, and I am afraid that Congress and the agencies are not paying that much attention to future enforcement.”
I think that we can agree that the Home Valuation Code of Conduct (HVCC) is here to stay. The most recent change I see impacting the appraisal world are the states writing legislation in regard to appraisals management. It is funny to see the different approach each state is taking. It is very obvious that the legislation is written by appraisers because the states are missing the full picture of mortgage banking and the intent of the HVCC. Much of the new legislation appears to be written to degrade the operations of appraisal management companies (AMCs) and protect appraisers. I am for the appraiser, and I am glad to see them rally at the local level to unify their efforts and protect their industry. From a bigger picture, I think legislation will adversely impact the appraiser. Because of the lack of unity and continuity from the respective states, the states will create more industry hardships that will require more federal intervention for standards. For example, Arkansas will no longer allow broker price opinions (BPOs) to be an option. I will agree that this example keeps business channeled to the appraiser, but it defeats the purpose of what a BPO was designed to do. Look at Arizona’s employment requirements: Any employee of an AMC or any person working on behalf of an AMC who has the responsibility of selecting independent appraisers for the performance of real property appraisal services for the AMC or providing appraisal review services on a completed appraisal, shall be appropriately trained and qualified in compliance with this chapter (USPAP, Appraisal Classes). Does this mean that all those banks, credit union and lenders who manage their own rotations are required to take USPAP classes? I don’t think Arizona had them in mind when writing this law. The local chapter of the Appraisal Institute did a good job of making sure of their survival in Arizona on this one. The only thing I see wrong with it is that the classes will not prevent these lending institution from violating USPAP and influencing appraisers. Look at Tennessee … Desk reviews must be performed by individuals holding an appraiser’s license.
19
“Appraisal review” means the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment, except that an examination of an appraisal for grammatical, typographical, or other similar errors shall not be an appraisal review. I will take the assumption that Tennessee is directly targeting AMCs, and not underwriters and quality control personnel who perform desk reviews on every loan they touch. As you can tell, the AMCs have their work cut out to be able to do business and the appraisers are taking revenge, but they are taking it out on the wrong people. HVCC is all about mortgage and appraisal compliance and following the many policies of USPAP. I think these state requirements will adversely affect some AMCs and the larger AMC will become even larger … or, move lenders back into managing their own appraisals. Then what? Appraiser influence is still strong and it is mostly coming from those who manage their own rotations. Until lenders realize HVCC should be managed by the quality control department, the industry will not achieve the tenants of both USPAP and HVCC. Quality Mortgage Services integrates appraisal management as a quality control solution reporting on Sections II, IV & VI of the Code to insure USPAP is followed and reported and offers its Appraisal Management Software (AMS) to those who want to integrate appraisal management into their quality control program.
Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Services LLC. For answers to your QC and FHA questions, please contact Tommy at (615) 591-2528 or e-mail taduncan@qcmortgage.com. You may also visit Quality Mortgage Services LLC on the Web at www.qualitymortgageservices.com.
Sponsored by
JULY 2010
What do you feel the future holds for the mortgage broker profession? There will always be a future for a professional mortgage broker. Mortgage brokers provide a service to the consumer that no other channel of distribution provides. We offer choice for the consumer and are willing to work with the consumer to achieve their dream of homeownership for however long it takes. We are always available to our customers, unlike other channels. These are qualities that other channels do not provide. Of equal importance is that members of NAMB have pledged to follow a strict Code of Ethics and abide by a code of strong Better Business Practices. The NAMB Lending Integrity Seal of Approval is a powerful symbol of our professionalism as mortgage brokers in today’s marketplace.
What is happening in the appraisal world?
MICHIGAN MORTGAGE PROFESSIONAL MAGAZINE
What do you do to generate business with MACC? Our business model is based on referrals. This model has allowed our company to experience a steady stream of business and modest growth from year to year. The quality of service provided to the consumer is key.
What advice do you have for mortgage professionals in order to strengthen their viability in today’s marketplace? We must go back to the basics that all mortgage brokers started with … innovation and being creative. It seems the longer we are in business, we lose sight of the necessity of being innovative and creative. We should seek to build customers for a lifetime, not just for one transaction. These basics will always allow mortgage professionals to compete in today’s market.
By Tommy A. Duncan, CMT
NationalMortgageProfessional.com
How has your local market in Corpus Christi, Texas reacted to the housing crisis? Corpus Christi is a unique market, in that historically, we have not experienced great fluctuations in growth from year to year. It is a slow but steady market. This has helped us in the downturn the nation has experienced over the last few years. We still have a good purchase market based on the state of the economy of the rest of the nation. We have not experienced the dramatic loss in property values that many regions of the country have experienced. One good thing I can say about the market in Corpus Christi is that when the rest of the country is down, our market is not down nearly as much, and when the rest of the country is up, our market is not up nearly as much. It is what I would call a “ho-hum market.”
What methods do you feel need to be put in place to police the industry? Is the Nationwide Mortgage Licensing System (NMLS) and greater enforcement of the laws currently on the books enough, or do you feel new regulation is necessary? We certainly do not need any new laws and regulation. Congress has already overreacted with the new laws that have been enacted just this past year alone. This is true with the agencies that oversee our industry. The market place has corrected itself without the help of Congress and the agencies. The NMLS has provided a platform that standardizes the licensing of mortgage professionals across the nation. That was indeed a necessity since many states had very lax licensing requirements if any at all. Enforcement is the key to any laws or rules. If there had been strong enforcement of the laws and regulations that were already on the books prior to the current mortgage meltdown, the problem would not have been nearly as severe as it was. Enforcement is the key to the future of our industry, and I am afraid that Congress and the agencies are not paying that much attention to future enforcement.