New Housing Bill/FHA Loans

[CURT VAN HOOSER]

Doug,

I taught an FHA appraisal class for Mckissock in 1999 nationwide. It was 2 full days and could have been longer. That was with the new(at that time) 4150.2 handbook. Now with all the changes, i believe that anyone who does not take such a class, having never taken a class in FHA appraisal before, does a disservice to their clients as well as the buyers and sellers.

I would like to see FHA require such a course(2 days), and a test, and then "Certify" anyone who has taken the course and successfully passed the test. Of course that will likely not happen as they are not a nationally recognized appraisal organization.

I could not agree with you more....

Side note: My personal experience with some "course providers" is that they spend more time telling jokes and biding their time until the 7 hours (or whatever) is up. I personally hate giving up my money to merely satisfy a CE requirement. I would prefer to actually get the education/information I am paying for....

 

[CURT VAN HOOSER]

Don: I still take the 7 hour FHA course ever year just to "brush up" my FHA appraising skills. I learn something new every year. It is jut amazing how many people have not even opened the book or even have a copy of the FHA guidelines. I would have no problem seeing such a 2 day course and test with mandatory updates every 1-2 years!! ( Do I get a kick back for promoting instructor/fees?)

I keep seeing this posted. Do you actually have evidence of someone performing FHA appraisals that does not have the "guidelines" or is this a feeling you have? Next, is it required to have a "copy" since the information is available online for ALL to read?

 

[CURT VAN HOOSER]

Brad, I have no idea which license level has been found to put the Depeartment most at risk, but from your comment, it is obvious that you are going to assert that it is the either the certified residential or certified general level. I also agree to you that the new law is idiotic and will do nothing to actually address the problem that it purports to fix.

That being said, if the FHA had been doing its job of assuring that only competent and qualified appraisers were added to the FHA roster, then maybe Congress would not have felt compelled to add this provision to the law.

How does one identify a competent and qualified appraiser? If, as you infer, most of the damage has been done by certified residential and certified general license levels...then licensing level would not appear to be a factor. When I decided I wanted to get "FHA certified", I worked with my mentor on FHA assigments, took some FHA courses, read a ton of literature, and a took a 10 question test (which was designed (I believe) to get people to read the literature). Yes...I realize it was not a 100 question test but from what I heard, the 100 questions were basically common sense anyway and only a fool would not be able to pass it. However, apparently many fools did pass it. So much so, I believe, that FHA said, "what to hell... if we can't weed out incompetence through testing, why not do away with the test and we'll just deal with them when we find them in review?"

 

[timd354]

HUD/FHA is required by statute to make sure the appraisers who do FHA appraisals are qualified to do so. Here is the text of the law (12 U.S.C. 1708(e)(1) (emphais added)):

(e) Appraisal standards

(1) The Secretary shall prescribe standards for the appraisal of

all property to be insured by the Federal Housing Administration.

Such appraisals shall be performed in accordance with uniform

standards, by individuals who have demonstrated competence and

whose professional conduct is subject to effective supervision.


HUD/FHA has failed miserably at doing its statutorily mandated duty in this regard.

 

[CURT VAN HOOSER]

All of those required by my state for one to become a Certified residential Appraiser prior to January 1, 2008. For courses after that date you can find those at the appraisal foundation web site. I have not taught many of the new courses, some of which you likely will not find unless you contact a college or university. I have also taught required real estate brokerage courses in:

1. Real Estate Brokerage
2. Real Estate Law
3. Real Estate Finance
4. Appraisal

The brokerage courses are required in Virginia if one wishes to become a real estate broker.

Thank you sir.

 

[DREWINMRBLHD]

I am licensed in Massachusetts but I am not certified. How will this alter my ability to do FHA appraisals? I work in an office with 6 appraisers and only two are on the FHA roster. Any advice?

 

[CURT VAN HOOSER]

HUD/FHA is required by statute to make sure the appraisers who do FHA appraisals are qualified to do so. 12 U.S.C. 1708(e) (emphais added)):

(e) Appraisal standards

(1) The Secretary shall prescribe standards for the appraisal of

all property to be insured by the Federal Housing Administration.

Such appraisals shall be performed in accordance with uniform

standards, by individuals who have demonstrated competence and

whose professional conduct is subject to effective supervision.

OK...how should the Secretary have appraisers demonstrate their competence? Seriously, what is the test of an appraisers competence?
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[CURT VAN HOOSER]

I am licensed in Massachusetts but I am not certified. How will this alter my ability to do FHA appraisals? I work in an office with 6 appraisers and only two are on the FHA roster. Any advice?

Get certified....

 

[timd354]

How does one identify a competent and qualified appraiser?
Through rigorous educational and testing requirements along with a review of 10% of all appraisals completed.

If, as you infer, most of the damage has been done by certified residential and certified general license levels...then licensing level would not appear to be a factor.
I never inferred anything of the sort. What I did infer is that is what Brad Pack is going to assert based upon his prior posts.

When I decided I wanted to get "FHA certified", I worked with my mentor on FHA assigments, took some FHA courses, read a ton of literature, and a took a 10 question test (which was designed (I believe) to get people to read the literature).
You actually made an effort to become competent to do FHA appraisals and should be commended for that. However, it is a sad fact that many FHA roaster appraisers made no such effort to make themselves competent before being added to the roster. Just look at the FHA related threads on AF to see numerous examples of incompetence.

Yes...I realize it was not a 100 question test but from what I heard, the 100 questions were basically common sense anyway and only a fool would not be able to pass it. However, apparently many fools did pass it. So much so, I believe, that FHA said, "what to hell... if we can't weed out incompetence through testing, why not do away with the test and we'll just deal with them when we find them in review?"
The solution to a test that is not rigorous enough to actually test for real competence is not to do away with test, but is to improve the test so that it will adequately test for competence.

Curt, you and I are probably more in agreement than you might think regarding this issue. I too think that the new law requiring FHA appraisers to be certified is idiotic. What I have been saying is that the FHA, through its unwillingness or inability to enforce any real appraiser competence standards, caused the Congress to do something.

I would like to see a real educational requirement, along with a rigorous testing requirement and a 10% review requirement put into place for FHA appraiser approval. If an appraiser can meet real requirements to prove competence, I personally do not care if they are state licensed or state certified.

 

[timd354]

OK...how should the Secretary have appraisers demonstrate their competence? Seriously, what is the test of an appraisers competence?

It certainly is more than just having a state issued appraiser's license or certification and promising to floow USPAP. See my prior post.