Many real estate agents have shared their confusion with us about the appraisal procedure for lenders. Some believe HVCC is still around (it’s not), and others are thinking that since it’s expired we should be back to “the old days” (we aren’t).
So just how do the appraisal/lender relationships work these days?
Just about every lender in the market is going to be following Fannie Mae’s Appraiser Independence Requirements – FNMA’s AIR – in order to have loans that are sellable on the secondary market. Like HVCC, AIR prohibits lenders from attempting to influence an appraiser, but AIR comes with more freedoms and less restrictions than HVACC. To read up on it, check out the FNMA AIR FAQ document from Fannie Mae. This pdf offers an easy-to-understand guide to what lenders can and can’t do with appraisals.
Mortgage Rate Forecast
Currently Trending: LOWER
Last week, we saw rates improve an average of .125 to .250 percent. This was due to the MBS (Mortgage Backed Securities) market recovering more than half of the selloff that occurred on November 8th. Now we may be seeing rates heading back to levels seen before the MBS selloff. Last week’s speech from Janet Yellen in her confirmation hearing also boosted confidence in market professionals. Her reassuring words led traders to feel more secure that Fed tapering of bond purchases would be postponed until at least 2014.
While rates may be dipping lower, don’t be shocked to see them rise up slightly again by next week. However, because certain market conditions and economic announcements make it difficult to predict just what will happen in the coming days, don’t be surprised if rates stay neutral. Either way, current mortgage rates are remaining near historic lows, so now is just as good a time as any to refinance, purchase a new home or begin investing in real estate.
Talk to your mortgage loan professional this week to weigh the benefits and consequences of floating your inetrest rate vs locking it in. Economic data scheduled to come in tomorrow will likely have an effect on rates, so keep your lender’s phone number handy!