All HUD has to do it take away the lender select part of the appraisal process. Put it on a rotation basis, depending on location of the property.
Also, lets try to REALLY test the appraisers who want to be FHA Certified........the new FHA Regs from a couple years back was a step in the right direction, but the FHA Exam was a JOKE when I took it. I had 30 questions to answer, and I think something like 60 minutes to do them in.......I took 8 minutes to pass the exam, and I was approved, and on the FHA list........a JOKE.....
The idea of HUD having it's own appraisers will never fly - just like in-house appraisers for various lending banks doesn't work that well in my area either.....I don't like the fact that HUD requires VC conditions - I am NOT a building inspector, but they are asking me to check for physical problems with the home. Not exactly the best idea.
my checklist for FHA would be this....
1.) Actually test the appraisers who want to be on the list, make sure we know what we are doing before you let us on
2.) Require a building inspection from an FHA certified building inspector. Don't you think they are more qualified to tell the lender whats wrong with the property??
3.) If you are worried about the "flipping" issue, then require a full title search for all the loans you close.
Oh, wait.......this is the federal goverment, Lets just let the appraiser do it all!!!!!!!
Let's add that the appraisal review process would be a joke if it wasn't so damned pitiful! Since when does a large contractor bidding (as in offering to work for less) for the review jobs in an area too large for the appraisers to be competent in make sense? Gee, lets hire the cheapest monkeys that will hire even cheaper monkeys to find a realistic appraisal.
Dumb and dumber leading the way in HUD and FHA.
AND... while they're at it, 'helping' those that could use a hand up are the ones being harmed the most. PLEASE stop 'helping' those poor suckers so much! You're so called 'help' does too much harm!!!