Revision to GSE Forms Coming?
Looking to revise appraisal forms… What will appraisers charge for more pages?
This notice was posted in the National Association of Mortgage Brokers e-newsletter on Dec. 28, 2017:
FHFA Looking to Revise Appraisal Forms
As one of its 2018 priorities, FHFA says in its 2018 Scorecard that it wants to “research, assess, and begin planning for appraisal process modernization, which could include revised appraisal forms and data requirements.” Now that we have a 17-page loan application coming soon, does that mean a 6-page appraisal form is inadequate? What will appraisers charge for more pages?
This particular issue has been discussed for at least the past 5 years. The current GSE forms were last updated in 2005 – 12 years ago. The 1004MC Form was added in 2009 (making the total minimum # of pages 7, not 6), and then the UAD overlay was instituted in 2011.
If FHFA actually takes this on, wouldn’t it be nice if they included actual working appraisers (especially residential types) on the form re-design committee?!
This is the entry in the 2018 FHFA Scorecard. Note that the word “could” is used, not ‘will’:
Continue efforts to increase access to single-family mortgage credit for creditworthy borrowers, including underserved segments of the market:
- Continue to identify opportunities to improve access to credit in a safe and sound manner, taking into consideration the changing circumstances and needs facing prospective borrower segments.
- Assess the availability of low-balance loan financing and develop recommendations as appropriate.
- Continue to support access to credit for borrowers with limited English proficiency, including by finalizing multiyear language access plans and beginning plan implementation.
- Informed by request for input feedback, conclude the assessment of updated credit score models and, as appropriate, plan for implementation.
- Research, assess, and begin planning for appraisal process modernization, which could
- Research and assess opportunities to further partnerships with housing finance agencies.