Rice Brewer
Member
- Joined
- Dec 14, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Arkansas
FHA, are you listening?
FHA, it is time to step up to the plate on appraiser pressure, requested "heads up" preliminary values, etc... on FHA assignments.
Just yesterday, I lost 3 FHA assignments because I would not give a "pre-value" (whatever that is...) and/or would not GUARANTEE values.
The solution is very, very simple. Issue a Mortgage Letter stating something similar to the below. I would add that you require that all FHA appraisal requests state that the ordering entity complies with said Mortgage Letter.
Please FHA, stop the madness. You have the power to make a change TODAY!
"No FHA Lender shall transmit an appraisal request to any FHA approved appraiser that includes an owners estimate of value or any "estimate of value" whatsoever with the exception of a purchase transaction wherein a copy of the contract must be sent to the appraiser. Furthermore, no appraisal request shall include any verbiage or request that the appraiser give any indication of opinion of value prior to the full completion of the assignment specific inspection of the property and the completion of a USPAP compliant appraisal report."
Said desired Mortgagee Letter should reiterate the warning from 2008-09 but should go further to tell the reader to whom reports of violations should be reported. "Your Regional Office" is not good enough.
FHA, it is time to step up to the plate on appraiser pressure, requested "heads up" preliminary values, etc... on FHA assignments.
Just yesterday, I lost 3 FHA assignments because I would not give a "pre-value" (whatever that is...) and/or would not GUARANTEE values.
The solution is very, very simple. Issue a Mortgage Letter stating something similar to the below. I would add that you require that all FHA appraisal requests state that the ordering entity complies with said Mortgage Letter.
Please FHA, stop the madness. You have the power to make a change TODAY!
"No FHA Lender shall transmit an appraisal request to any FHA approved appraiser that includes an owners estimate of value or any "estimate of value" whatsoever with the exception of a purchase transaction wherein a copy of the contract must be sent to the appraiser. Furthermore, no appraisal request shall include any verbiage or request that the appraiser give any indication of opinion of value prior to the full completion of the assignment specific inspection of the property and the completion of a USPAP compliant appraisal report."
Said desired Mortgagee Letter should reiterate the warning from 2008-09 but should go further to tell the reader to whom reports of violations should be reported. "Your Regional Office" is not good enough.
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