Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant

Arizona Market Protected From Bubble

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azIn Arizona some people are concerned that we are experiencing another market bubble. There are new regulations that have been put in place to ensure that the quality of loans made now will not have the devastating effect it did 8 years ago. In the mortgage industry, we have seen that these new regulations may cause the process to purchase a home to be a little more time consuming, but it’s better to be safe than sorry. One of the main regulation changes is in the ability to choose an appraiser.
Due to the HVCC (Home Valuation Code of Conduct) put into effect in 2009, in an effort to ensure the stability of the housing market, lenders across the country are required to have an appraiser randomly selected. HVCC is a set of rules for the mortgage lending and real estate appraisal industries. The intended purpose of the HVCC is to protect appraiser independence and prevent pressure from being applied to appraisers to produce a desired property value. Ultimately, these safeguards are intended to protect consumers.
Loan officers are not permitted to discuss the appraisal and value with the appraiser directly. Appraisers (who now know they are under Federal scrutiny) have made it a regular practice to conservatively appraise Arizona homes. This stabilizes the inflation rate of home prices in Arizona and in turn does not allow the market in rapidly increase, leading to another bubble.
Another aspect that has changed is the necessary documentation required from a borrower trying to get a home loan. I have written on this subject before, but feel that it needs to be touched on again.
Many clients have jokingly asked “what else do you need? a blood sample?” I understand that Loan Officers are very specific on what they ask for and it can get very tedious, however, there is a reason for this. Borrowers that cannot demonstrate an ability to save have a higher chance of missing mortgage payments and/or foreclose. Now, borrowers are permitted to receive a gift from a family member. This may seem strange because if a borrower receives a gift it does not show their capability of saving. What it does show is the support and backing from family/friends.
Many people may not agree with the new regulations, but they are in place. They are there to protect not only our market from another downturn, but also to protect the borrowers from possible financial turmoil. Borrowers should not hesitate to ask questions during the loan process. At the same time, borrowers also need to be understanding and accommodate the requests that may come from your loan officer. For any questions or comments, please feel free to contact me by email or visit me at or

Author: ibquinn

I am a Senior Loan Officer at Caliber Home Loans, with over 35 years of Mortgage Banking experience. I have the expertise and knowledge to help focus in on your home-ownership goals and make them into reality. My team of experienced mortgage professionals and I can assist you in all steps of the home buying process and ensure that you have a smooth and hassle-free transaction. Caliber cannot accept mortgage loan applications or inquiries for properties located in New York through this site. Ingrid Quinn NMLS #211652 BK#0923637 Licensed in AZ, CA, OR

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