FHA has just announced that the implementation of new procedures to separate appraisal orders from the origination process has been delayed until February 15, 2010. This change is a major part of numerous changes that FHA has made or is planning to make in the near future.
The push for appraiser independence is seen by FHA to be an important part of the push to improve its loan quality.
The changes to the appraiser ordering process involve the requirement that appraisal ordering must be separated from the loan origination process both for mortgage brokers and for lenders. Generally to accomodate this change lenders have set up arrangements with third party appraisal management companies, similar to arrangements made to comply with HVCC.
This change was announced with ML2009-28. It may be that many lenders were struggling to establish procedures to handle appraisal ordering, especially on the heel of preparing to accomodate the massive changes to RESPA disclosures which also takes effect in January 2010.
|
Richard Smith |
American Acceptance Mortgage, Inc |
FHA, VA, Rural Development, Conventional, Jumbo,
Reverse Mortgages, FHA 203k Renovation
Home financing in Tennessee and Georgia.
So, do you think that means they are going to start the higher DP, higher PMI at that time then too?
Hey Julia,
I do not think the decision to delay the change with the appraisal is related to the anticipated change in downpayment or increased mortgage insurance premiums. It makes sense to me that there were just a lot of lender requests to delay the appraisal change because everyone has been focused so much on the RESPA change. I had not heard much at all from lenders on their appraisal procedures until the last week or so.
They just had not done anything about it. For the longest time, I asked lender reps what they were going to do and most had not heard of the change.
Anyway, the word I have is that the other changes will be announced in January - specifics and timeframe.