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New Housing Bill/FHA Loans

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Don -

Should there be a required 2-day course for those who appraiser conventional (FNMA/FHLMC) transactions? How about VA? If not, why not? What's the difference? Isn't competency is covered under USPAP? Just curious.

Brad,

I agree that the FHA guidelines and the GSE/VA/ETC guidelines should be considered equally when it comes to any extra education, training, or requirements. And I agree that USPAP minimums should be enough.

There used to be the theory that FHA and VA risked taxpayer money while the GSEs did not. That theory no longer is true.

And I will also say that FHA does a pretty darn good job of publishing clearly written and well organized guidelines. Any reasonable person should be able to comply.

I might not go so far as to say I believe certain levels of training should be required for any of these entities but I would say that I think it would be wonderful if they all did. And I also think it would be very beneficial if they all had specifically "sanctioned" classes that could be depended on to teach the "company line."

Even appraisers who are reasonably inteligent and diligent sometimes have a hard time getting consistent information regarding these published guidelines.

The truth is, these published guidelines are much more involved than USPAP and are only for specific applications. For those of us that study the guidelines and get the extra training in an effort to become proficient, it is demoralizing to sit by and watch skippies churn out reports without ever having read the guidelines (including the GSEs').
 
What license level do you all believe has been found to put the Department most at risk? More on that in the future. You are all in for an awakening...

Brad, please enlighten and let us know what you know along with any data or studies that you have to support any conclusions you have as to what license level puts the department most at risk.
 
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What license level do you all believe has been found to put the Department most at risk?

My guess? General license on an individual basis and because there is more to FHA than single family residential. Overall, Certified Res. because there are more of them.
 
My guess? General license on an individual basis and because there is more to FHA than single family residential. Overall, Certified Res. because there are more of them.

Shows the following to be true:

'There are three kinds of lies: lies, damned lies, and statistics.
 
My guess? General license on an individual basis and because there is more to FHA than single family residential. Overall, Certified Res. because there are more of them.

That's my guess. Percentagewise, cert gens because there are fewer of them and overall cert res because there are more of them.
 
In my (newbie) opinion I think ethics is the more critical issue than knowing all the FHA trivia. How much damage to FHA has been caused by manufactured homes that have been moved but the appraiser didn't know it? How much financial loss has been caused by falling electrical towers? How many FHA loans went non-performing because the borrower died after falling off the back door steps which didn't have a hand rail?

How much damage was caused because the appraiser didn't mention a leaking roof which later caused enough structural damage that the house had to be abandoned and then demolished?
 
In my (newbie) opinion I think ethics is the more critical issue than knowing all the FHA trivia. How much damage to FHA has been caused by manufactured homes that have been moved but the appraiser didn't know it? How much financial loss has been caused by falling electrical towers? How many FHA loans went non-performing because the borrower died after falling off the back door steps which didn't have a hand rail?

How much damage was caused because the appraiser didn't mention a leaking roof which later caused enough structural damage that the house had to be abandoned and then demolished?
Answer, more damage than you could possibly know. I have seen the reports that were made to the congress prior to the FHA publication of the 4150.2 handbook and creation of the REAC center in 1999. There were volumes of reports sent to the House Sub Committee and to former Congressman lazlio(sp) of New York along with photos. It was not a pretty sight.

Truth is that FHA recently lowered the standards for becoming an FHA roster appraiser possibly because the FHA business was down over 47% in 2006-2007. But the real decline started when the FHA did away with their Fee Panel in the early 1990's.
 
I would. I have had an Associates Degree in Real Estate since January 1979. I have also taught all the required courses many, many times so i would not fear taking the current exam.

But, just out of curiosity, why would you expect one who is certified to have to retake the exam? They do not require that of any other profession.

Don, if you don't mind, what are all the required courses?
 
Don, if you don't mind, what are all the required courses?

All of those required by my state for one to become a Certified residential Appraiser prior to January 1, 2008. For courses after that date you can find those at the appraisal foundation web site. I have not taught many of the new courses, some of which you likely will not find unless you contact a college or university. I have also taught required real estate brokerage courses in:

1. Real Estate Brokerage
2. Real Estate Law
3. Real Estate Finance
4. Appraisal

The brokerage courses are required in Virginia if one wishes to become a real estate broker.
 
Answer, more damage than you could possibly know. I have seen the reports that were made to the congress prior to the FHA publication of the 4150.2 handbook and creation of the REAC center in 1999. There were volumes of reports sent to the House Sub Committee and to former Congressman lazlio(sp) of New York along with photos. It was not a pretty sight.

Truth is that FHA recently lowered the standards for becoming an FHA roster appraiser possibly because the FHA business was down over 47% in 2006-2007. But the real decline started when the FHA did away with their Fee Panel in the early 1990's.

My Bold

I can only speak from my own experience, and I completely agree with the above statement.
I was approved for my CHUMS# in 1990. out of the Chicago regional office. I had 2 days of training at the HUD field office in Chicago, and the first 3 reports I performed were sent directly to that office and field reviewed.
I also had to be approved for the lower portion of IL as I covered Kankakee county which is within 40 minutes of my location, that meant I had to go through additional training from the Springfield Field office with the same review of reports, finally I received my Cert in Indiana as I am only 20 minutes from the Indiana border. Again more training through the Indianapolis field office.
Once FHA went to an open roster with testing I was not grandfathered in I had to take the test like all others who never had any training.

During the time I was a Chum's appraiser 10% of my appraisals were reviewed and it was my responsibility to send in all completed reports directly to FHA. ( if they received a case number request with my name and did not receive an appraisal from me within I believe 3 months, I received a letter requesting the report)

Once MB's started yelling turn time is too slow the FHA relented and opened it up for every appraiser.
I have not seen a review report for an FHA report I performed in probably over 10 yrs.

Every year FHA had a mandatory 1 day seminar to go over changes and major deficiencies they found in reviewed appraisal reports, THIS IS NO LONGER.

The opening of the roster without requiring the training and the mandatory review is the problem not the opening of the roster itself.

The FHA is in the position to make a change for the better. Nothing in the law would keep them from going back to the mandatory training, to the mandatory review of 10% of appraisals, and to the requirement of all reports to be sent directly to the FHA.
It just takes the Secretary of HUD to state these are our requirements above what is the minimum required by Congress.
It doesn't have to be a closed panel. Just have it make sense!
 
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