Category: Federal Housing Administration

Appraisal Institute members in Capitol Hill 2

Members of AI Urge Congressional Action on 3 Bills

Nearly one hundred members of the Appraisal Institute went to Capitol Hill May 23 to urge Congress to act on three bills that could significantly impact the valuation profession. Attendees of AI’s annual Leadership Development and Advisory Council, held May 22-24 in Washington, D.C., lobbied lawmakers and their staffs on S. 3047, the Expanding Homeowners Refinancing Act; H.B. 3461/S. 2160, the Financial Institutions Examination Fairness and Reform Act; and S. 3085, the Responsible Homeowner Refinancing Act of 2012. S. 3047 builds on President Obama’s proposal — announced during his 2012 State of the Union address — that home loans not...

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The 8 Biggest Appraiser Liability Cases in the U.S.

I have described below the 8 biggest appraiser liability cases with which I am familiar that are currently pending in the U.S. These are cases that specifically name appraisers, appraisal firms or appraisal management companies as defendants. That’s an important distinction because the appraisal industry has been fortunate that only a small fraction of litigation about financial losses blamed on appraisal deficiencies actually names any appraisal defendants. Yet, the stakes below are very significant for the appraisal industry because the realistic measure of damages at issue in just these 8 cases — not the plaintiffs’ puffed-up alleged damages — is...

Borrowers to Refinance with No Appraisals 1

FHA Borrowers to Refinance with No Appraisals

More FHA Borrowers to Refinance without Appraisals The Obama administration announced March 6 that the Federal Housing Administration would reduce fees that have prevented some FHA borrowers from refinancing at ultra low rates over the past year, The Wall Street Journal reported. The change will reduce fees through what’s known as a “streamline” refinance, which is reserved for FHA borrowers who refinance into another FHA-backed mortgage. The process does not require borrowers to verify income, employment or credit — and it does not require a new appraisal, which means that underwater borrowers can refinance, the Journal reported. Many borrowers who...

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FHA Updated Valuation Protocol FAQs

FHA Updated Valuation Protocol FAQs Revised 02/28/12 FHA has updated the Valuation Protocol FAQs posted on the FHA Appraiser Roster web page. The most recent FAQ can be found on page 27 of the document and provides clarification for what constitutes an acceptable conventional heating system. You can periodically review the FHA Appraiser Roster web page for alerts on recently published Mortgagee Letters of interest and other pertinent announcements. The publication contains the following topics: New Construction Wood Destroying Insects/Termites Utilities – Well and Septic Inspections & Certifications Cost Approach Accessory Dwelling Units Manufactured Housing Two Unit Properties HECM Appraisals Lender...

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Free FHA Webinar for Appraisers on Preventing Mortgage Fraud and Foreclosure Scams

The Federal Housing Administration (FHA) is offering a webinar on February 28, 2012 on Preventing Mortgage Fraud and Foreclosure Scams: February 28, 2012 – Preventing Mortgage Fraud and Foreclosure Scams Webinar. The webinar will provide information on the detection and prevention of Mortgage Fraud and Foreclosure Scams and is presented by the Department of HUD, Federal Reserve Bank, Federal Trade Commission, and the Federal Deposit Insurance Corporation. The intended audience includes Mortgage Industry (lenders, housing counselors, real estate agents, appraisers);

No Appraisal Required on Obama Administration Plan 1

No Appraisal Required on Obama Administration Plan

Last week the Obama Administration unveiled its plan to help homeowners refinance to take advantage of historically-low interest rates. We are going to focus on the valuation side of the plan. If you want the rest of the details you can go here. The program includes refinance options for GSE (government sponsored enterprises, Fannie Mae and Freddie Mac) and Federal Housing Administration (FHA) borrowers. Both programs forgo the appraisal requirements in the refinance process. According to the White House Fact Sheet, “the GSEs would be directed to use mark-to-market accounting or other alternatives to manual appraisals for any loans for which...

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GAO Report on ASC Hits the Street

On January 18, 2012, the US Government Accountability Office (GAO) released their report on real estate appraisals “Appraisal Subcommittee Needs to Improve Monitoring Procedures” as required per Dodd-Frank. GAO was tasked with 1) determining how the Appraisal Subcommittee (ASC) is carrying out its Title XI responsibilities, 2) ASC’s plans to implement Dodd-Frank provisions, and 3) regulatory dollar thresholds for determining when an appraisal is required. GAO reports that one of the challenges faced by ASC is in the area of resources and planning.

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2012 FHA Webinar Training for Appraisers

The Federal Housing Administration (FHA) is offering appraisal webinar and seminar training in January and February 2012 for seasoned and new real estate appraisers: January 17, 2012 – Property Inspection Requirements for FHA Appraisers: Have you ever thought, “Am I in compliance with HUD requirements if I do not inspect the subject’s attic?” This FREE webinar training is geared towards the FHA Single Family Roster Appraiser and will cover property inspection requirements to include neighborhood influences, site analysis, and improvements. Appraisers new to the FHA Roster, as well as seasoned professionals wishing to refresh their knowledge, will benefit from this...

Caving in to CAIVRS 2

Caving in to CAIVRS…

As if the economy isn’t difficult enough, now appraisers are facing financial ruin through CAIVRS. CAIVRS is a Federal government database of delinquent Federal debtors that allows federal agencies to reduce the risk to federal loan and loan guarantee programs. CAIVRS alerts participating Federal lending agencies when an applicant for credit benefits, or for a position of trust in support of the administration of a Federal credit program, has a Federal lien, judgment or a Federal loan that is currently in default or foreclosure, or has had a claim paid by a reporting agency. In short, this is a database...

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Appraisal Institute New Residential Green and Energy Efficient Addendum

On September 29th, the Appraisal Institute released a form intended to help analyze values of energy-efficient home features. It is the first of its kind intended for appraisers’ use. The industry leader in green valuation, the Appraisal Institute issued the form as an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes. Used by Fannie Mae, Freddie Mac and the Federal Housing Administration, Form 1004 is completed by appraisers to uphold safe and sound lending. Currently, the contributory value of a home’s green features is rarely part of the equation. “This...

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