The Federal Housing Administration recently implemented several changes to its appraisal process for government-insured loans. A number of new offerings address new agency appraisal requirements as well as the new FHA requirements.
Mortgagee Letter 2010-15 from the U.S. Department of Housing and Urban Development informed mortgagees they can obtain a case number in FHA Connection without first having to select an appraiser from the FHA’s roster or input the appraiser’s information in the case number assignment screen. The update went into effect on Feb. 15.
HUD also said that the effective appraisal dates must be subsequent to the case number assignment date, though there are some limited exceptions.
Mortgagee Letter 2010-13 clarified that the Market Conditions Form must be completed in conjunction with the Appraisal Update Form. The letter also said that no appraisal can be more than 150 days old including a 30-day extension, and appraisal update reports are not valid after 240 days from the original appraisal and can only be used one time.
The letter additionally indicated that the Appraisal Update Report can’t be used when ordered by a lender who is not identified as an intended user in the original appraisal report unless the appraiser attaches the original report to the update.
An earlier letter from HUD, Mortgagee Letter 2010-08, indicated that appraisals can be used for up to 120 days to establish the listing prices on an REO property. In addition, a second appraisal cannot be used to establish a higher sales price unless there are material deficiencies in the current appraisal or it will not be valid on the date of contract ratification.
An audio recording and Power Point presentation of a March 16 Webinar by FNC about Fannie Mae’s collateral data delivery guidelines are now available for online viewing at www.fncinc.com.
An alliance announced on April 27 between Global DMS and Valligent promises to streamline the entire valuation process. The collaborative service, dubbed MISMO-Connect, enables delivery in the MISMO sanctioned format and enables compliance with the Home Valuation Code of Conduct, FHA’s new appraisal guidelines and Fannie Mae’s and Freddie Mac’s Collateral Data Delivery program that becomes effective July 1.
“Rather than ordering and managing various individual valuation products, mortgage companies can create their own custom valuation workflow seamlessly integrated with their loan management system in a format fully-compliant with the new GSE requirements and all other major guidelines and regulations,” Global — a MortgageDaily.com advertiser — explained in the announcement.
A day earlier, Lansdale, Pa.-based Global unveiled its OasisOne platform that enables users to run multiple disparate software solutions from a single browser window. The offering is targeted at mortgage lenders and appraisal management companies. The first solution that was accessible through the new platform was the company’s MISMO Appraisal Review System.
Version 4.4 of AIMS helps lenders comply with appraisal independence requirements of the Uniform Standards of Professional Appraisal Practice, FHA Mortgagee Letter 09-28 and HVCC, AIMSdashboard said last month. The updated offering also complies with Federal Financial Institutions Examination Council requirements.
“AIMS allows appraisers to work with lenders on the direct terms of the lender without having to meet the additional demands of an intermediary, such as an appraisal management company,” AIMSdashboard President Chris Williams stated. “We allow the appraiser to communicate directly with the lender, the ultimate customer, and with the origination agents in a compliant fashion.”
