Find valuable information from the VP of Appraisals at Cherry Creek Mortgage, Scott Hamling on how Fannie Mae's Collateral Underwriter is changing the face of the mortgage industry, yet again. Feel free to contact me with any questions or to find out the next time Scott will be presenting on this critical topic.

1. TAKING BACK CONTROL
OF THE APPRAISAL
PROCESS
presented by:
SCOTT HAMLING
Cherry Creek Mortgage

2. The euro's dramatic fall against the dollar, due to Europe's
economic weakness, will reduce US inflationary pressures,
hurt US exports and reduce equity values. Therefore, the Fed
may wait longer before raising rates. However, the ECB is
hoping the Fed raises rates faster thus weakening the euro
more. As a result, any Fed delay in raising rates will force the
ECB to very reluctantly act more swiftly and forcefully.
Elliot F. Eisenberg, Ph.D.
GraphsandLaughs, LLC
elliot@graphsandlaughs.net
Cell: 202.306.2731
www.econ70.com

3. HISTORY
Important: HVCC did NOT cover Realtors……
Dodd/Frank DOES cover realtors!
But more important………
Realtors have the right to discuss valuation with
appraisers
In 2009: Home Valuation Code of
Conduct (HVCC)
HVCC has been replaced with
Dodd/Frank Act

4. Dodd/Frank Rules
Dodd/Frank makes it a Federal crime for anyone with an interest
in the transaction to;
Compensate, coerce, extort, collude, instruct, induce, bribe, or
intimidate the appraiser.
Mischaracterize the appraised value of the property
Seek to influence an appraiser or otherwise to encourage a
targeted value.
Realtors have the right to discuss valuation with appraisers

5. Dodd/Frank Rules
The requirements of subsection (b) shall NOT be construed as prohibiting a
mortgage lender, mortgage broker, mortgage banker, real estate broker,
appraisal management company, employee of an appraisal management
company, consumer, or any other person with an interest in a real estate
transaction from asking an appraiser to undertake 1 or more of the following:
it is OK to Ask Appraiser to
(1) Consider additional, appropriate property information, including the
consideration of additional comparable properties to make or support an
appraisal.
(2) Provide further detail, substantiation, or explanation for the appraiser's
value conclusion.
(3) Correct errors in the appraisal report.

6. AMC vs. Local Lender
How does an AMC (national lender appraiser pool) compare with a local lenders
appraisal pool?
Cherry Creek Mortgage Co:
In-house appraisal management division
Identified best appraisers in the market
Strict guidelines, lending training, and good pay for appraisers
Appraisers have no incentive to do a great job – you need to be proactive in
protecting your transaction!
Use a loan officer that works for a company that has local control
of the quality of appraisers used.
Watch FHA and VA – Appraised value sticks with the property for:
FHA – 4 months
VA – 6 months

7. Recommendations for Listing Agent
The Seller will be angry with YOU if the deal does not
close (not buyer, buyer’s agent, or lender)
Get it right the first time – less than 10% chance of
increasing the valuation after appraisal
Meet the appraiser at the property

8. Recommendations for Listing Agent
Before looking for comparables:
1. Pull up a 1004MC form
2. This form will dictate the
comparables needed
3. Example:
 1004MC shows
values are declining
 Investor requires minimum
3 comps that closed in past
3 months
 PLUS 2 listing or pending sales
4. All comparables must adjust for at or
above appraised value

9. Recommendations for Listing Agent
Appraiser packet suggestions:
1. Contract
2. Listing brochure
3. List of all property upgrades, completion dates and costs
4. The sketch if property was measured before listing
5. County assessor records
6. Listing history
7. 1004MC form obtained from MLS listing service
8. Comparables to support sales price (listed, pending, sold)

10. Recommendations for Listing Agent
Meeting the appraiser at the property:
Setup as for a buyer showing (clean and well cared for matters)
Meet somewhere you can spread out materials you prepared:
Review 1004MC form
Explain why you chose the comps you have
Show other comps you found, and explain why they are poor
comps
Tell about the property’s special features

11. Recommendations for Listing Agent
Meeting the appraiser at the property:
Turn appraiser loose (do not follow from room-to-room)
Before appraiser leaves:
Would you please give me the same consideration that VA
requires it’s appraisers to give and call to INVOKE TIDEWATER if
you find you are not reaching sales price.
If there are value issues – don’t panic!
Stay friendly with appraiser
Offer to do more research on comps
Consider contract extension – remember you only have a 10%
chance of getting the appraised value increased

12. Realtor vs. Appraiser Valuation
Realtors and Appraisers value differently:
Realtors value properties using PPSF
Appraisers value properties by making
adjustments for differences

13. Accessing the 1004MC Form

14. Accessing the 1004MC Form

15. Accessing the 1004MC Form

16. Accessing the 1004MC Form

17. Accessing the 1004MC Form

18. Accessing the 1004MC Form

19. Accessing the 1004MC Form

20. UCDP…What is it?
How will this affect my business?

21. If you are interested in receiving Scott’s daily
blog please send an email to:
SCOTT@SCOTTHAMLING.COM
Copyright 2014 Cherry Creek Mortgage Co., Inc. Company NMLS# 3001. All rights reserved. Cherry Creek Mortgage is
not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development,
Federal Housing Administration, the Veterans Administration, the U.S. Department of Agriculture or the Federal
Government. This material is informational only and is not an offer to lend or recommend available products. This is not an
advertisement to extend credit as defined by Regulation Z, nor an application for credit as defined by RESPA/Regulation X.
All applications are subject to underwriting guidelines and approval based upon the credit, assets, value of subject property
and borrower’s ability to repay. Not all applicants are eligible for or qualify for all loan products offered. All loan programs,
terms and conditions are subject to change without notice.

22. Questions?
Thank you for your participation!
Call with questions – We are here to help.
Copyright 2014 Cherry Creek Mortgage Co., Inc. Company NMLS# 3001. All rights reserved. Cherry Creek Mortgage is
not endorsed by, nor acting on behalf of or at the direction of the U.S. Department of Housing and Urban Development,
Federal Housing Administration, the Veterans Administration, the U.S. Department of Agriculture or the Federal
Government. This material is informational only and is not an offer to lend or recommend available products. This is not an
advertisement to extend credit as defined by Regulation Z, nor an application for credit as defined by RESPA/Regulation X.
All applications are subject to underwriting guidelines and approval based upon the credit, assets, value of subject property
and borrower’s ability to repay. Not all applicants are eligible for or qualify for all loan products offered. All loan programs,
terms and conditions are subject to change without notice.
Jay Rabideau
Loan Originator
NMLS # 241119
1435 Stuart Street, 3rd Floor
Denver, CO 80204
Phone: 303-586-3182
Cell: 720-989-6836
Fax: 303-200-7887