FHA EXTENDS APPRAISAL VALIDITY.

[RSW]

The FHA has extended the appraisal validity from 120 days up to 180 days & extended the update period from 240 days up to 1 year.

 

[glenn walker]

The FHA has extended the appraisal validity from 120 days up to 180 days & extended the update period from 240 days up to 1 year.

One FHA loan officer I know says its because so many buyers are walking away and not closing escrow and so they want appraisals to be portable for a longer period. Very unusual as normally when markets change or slow up its just the opposite. I remember when 90 day portability was normal. BUT they dont needed a update until after 180 days so if vlaues declined a buyer would not know it and lender use the original. Sounds to me like trying to keep prices up

 

[redfish]

Keep people obliviously chasing the American Dream.

 

[Amy Perkins]

The FHA has extended the appraisal validity from 120 days up to 180 days & extended the update period from 240 days up to 1 year.

Seems like a bad idea to me... maybe I will dump that AIG stock after all.

 

[redfish]

They may also be banking on appraisers actually indicating that property values have declined since the effective date of the appraisal being updated, if in fact values have declined.