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FHA Appears to have become the Hog in the lot now for loans. What is in the future?

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Ray Miller

Thread Starter
Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
It appears that FHA is becoming or has become the hog on the block for all types of loans? Who is watching the incoming door for them on appraisals? Will the same thing happen that happen with the other lenders in the sub-prime mess? With the FHA loans will the tax payer be the one to pay for the lost?? What safe guards to you think are in place this time at FHA?

Will FHA call for the same new rules over at Fannie and Freddie, that no in house appraisers may be used?

Just got to thinking who is going to chew the fat at FHA?
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Looks like FHA is going to be the bail out agency for CW, WF etc..

Given that FHA is watering down their appraisal standards on a daily basis there are no safe guards.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
What appraisal standards have been watered down?
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Supplemental Requirements are virtually non existent anymore. The HUD addendum we all had to use is now gone. The class and the exam are now good as gone. Eaapraiseit is telling all their skippy appraisers to get their FHA credentials so they can continue using them.

I'm going to predict that FHA is going to be shortly the next big lender type to hit the wall, with the relaxing of standards being the biggest part.

What lender wants to see workorders for peeling paint, for unsafe conditions, etc.... That is the one thing FHA used to be good for.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Supplemental Requirements are virtually non existent anymore. The HUD addendum we all had to use is now gone. The class and the exam are now good as gone. Eaapraiseit is telling all their skippy appraisers to get their FHA credentials so they can continue using them.

The supplementals are still there. They're just called scope of work now. As far as I know the MPR's/MPS's have not changed. The HUD addendum was nothing more than training wheels in the form of a form. The class and exam were determined to be redundant because only licensed and certified appraisers can complete appraisals for FHA and are expected to know the scope of work.

I agree with the disdain regarding the little e company. Maybe HUD will kick them off their approved list of companies hiring appraisers. They had better shape up.

The upside is that HUD can remove an appraiser from the panel for deficient work with the click of a button. Try clicking a button to get OREA or any other state board to discipline an appraiser.
 

Tom Woolford

Elite Member
Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
With any luck, they will go back to the rotating panel, with a severe review process. That should weed out Skippy in short order.
 

saxon

Sophomore Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Louisiana
My old Volkswagon van should pass as a house now.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
The FHA review process is a joke and brokers know it. HUD send it out to the lowest bidder, some guy in Denver for us, who then sub-contracts it out locally at LESS THAN HALF the normal review fee. So our local stuff is field reviewed by some guy from Portland who drives out and does ten in a day.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
Seeing how a large part of my service area is now at a FHA max loan amount of $729,750 for 1 unit properties and $1,403,400 for 4 unit properties, the dishonest mortgage brokers and their skippies in my area are going to cost us all a lot of money.
 
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