FHA Lowering Requirements

[Non Sequitur]

I think it is time for licensed residential appraisers to be able to complete a loan when FHA is involved, again.

I do not do any residential work, it will not impact me, but it is a ship that should be righted.

Never made any sense that a newly certified residential could do FHA related appraising but a 25-year licensed seasoned appraiser could not, just due to the stoke of a pen (congress ignorance).

IIRC FHA dropped licensed appraisers before qualifications changed. Back in the day an aspiring appraiser could take QE, pass the test and become licensed. That's changed now, so I agree with you that FHA should add licensed appraisers.

 

[azbassman21]

Problem is we are paid, in part, for those inefficiencies. No one is going to pay us the same or more for less photos and driving.

We need to have the process be more efficient. They complain about how long it takes and the fee, but the fee isn't the issue as we don't make even close to what the others do in the transaction. There has to be a way for Fannie to make the form easier to navigate and complete, and waiving ridiculous requirements like driving around looking at houses is part of the waste. If there is no data and you have to see the home, sure you should have to go and look, and a pic would be a good idea, but for the most part I don't understand why we haven't updated our antiquated system in over 30 years.

 

[Non Sequitur]

We need to have the process be more efficient. They complain about how long it takes and the fee, but the fee isn't the issue as we don't make even close to what the others do in the transaction. There has to be a way for Fannie to make the form easier to navigate and complete, and waiving ridiculous requirements like driving around looking at houses is part of the waste. If there is no data and you have to see the home, sure you should have to go and look, and a pic would be a good idea, but for the most part I don't understand why we haven't updated our antiquated system in over 30 years.

I'm not saying you're wrong, but the vast majority of lender assignments are controlled by parasitic middlemen. They will not pay the same for less work. When these new shortcuts (let's be honest, hardly anyone will drive the comps if they don't have to take the photos) are standard, fees will drop with the "efficiency" mantra chanted over and over.

 

[Dublin ohio]

IIRC FHA dropped licensed appraisers before qualifications changed. Back in the day an aspiring appraiser could take QE, pass the test and become licensed. That's changed now, so I agree with you that FHA should add licensed appraisers.

It took effect 10/01/2009. 8 years doing FHA and poof, no longer qualified even though when I got approved you actually had to take a test to get on the roster

 

[TerryRohrer]

Well, according to a TAF idiot on Facebook, they are actively considering deletion of an experience requirement. Who won’t qualify then?

 

[Non Sequitur]

Well, according to a TAF idiot on Facebook, they are actively considering deletion of an experience requirement. Who won’t qualify then?

They already have with Practicum and PAREA for residential license status. The only step left for full "harmonization" is for states to adopt the paths for certification too.

Edit: Do you think they are targeting the CG side too? My best guess is the reason they are going the way of eliminating experience is because they are only authorized by Congress to license real property appraisers. And if anyone has been paying attention, the numbers are roughly half of what they were at the peak of about 10 years ago. So the alphabet soup in DC is definitely feeling that. So why not drop experience requirements and open the floodgates to the real property side? Cha-Ching!

 

[J Grant]

It's time to modernize this industry. It's what has hamstrung us for the past 20 years with lenders and AMCs. I don't think FNMA should be insuring loans without an appraiser signature, but streamlining the process is necessary, i.e. photo requirements with HUD, unnecessary writing and narratives in the report that is not even read anyways, having us inspect certain things that aren't necessary or shouldn't be within our scope, etc. We have access to photos of almost any house in the country at our fingertips, there is no sense in driving around, wasting an hour taking photos of houses we have seen 4 and 5 times prior. The process needs to be sped up and we should be able to get reports in while at the property, which hopefully will happen with these new forms.

Absolute hard no to getting the report out while at th property.
Taht means no analysis and no thought put into it, - and the thought and analysis is what differentiates an appraisal from an AVM with photos attached. That amount of speed is not necessary, closings take weeks, it is not an amazon click consumer product race .

I do agree with eliminating some time-consuming items, such as comp photos or inspection from street of comps - that should be at the appraiser's option - if they feel it is relevant to inspect a comp from the street, in some cases it is needed, vs a clean subdivision where it adds nothing . Attic photos are ridiculous, dangerous to go up ladders into an area that is limited in view anyway - A lender could order a home inspection with every loan but they choose not to.

 

[Terrel L. Shields]

Who won’t qualify then?

Like the old prients with Coronado's crusades 500 years ago, "Domini, Domini, Domini, You're all Catholic now."

 

[norapp]

Not having to inspect the attic is a plus!

I believe you are still required to inspect it and add a statement.

 

[norapp]

We have not been required to do the 1004MC report for some time now, but almost all my clients still want it. None of these new directives matter if the client wants it. And most likely will.