FHA News & Info

Effective October 1, 2008 FHA stopped accepting applications from State Licensed appraisers and is only accepting applications from State Certified Appraisers. Current State Licensed appraisers on the FHA roster will be allowed to do FHA appraisals for the time being but eventually will have to upgrade to Certified in order to continue doing FHA appraisals. This is a result of the Housing Economic Recovery Act, signed July 30, 2008. 

All new applicants must also take an educational course dealing with FHA appraisals in order to be approved for the FHA roster. At this point in time, there is still no test requirement to be placed on the roster.

What this means for Loan Officers? Now more than ever you need to find appraisers who stay on top of their educational requirements. Especially when it comes to dealing with all of the recent changes to FHA.

Many inexperienced and/or under educated appraisers fell through the cracks when FHA allowed anyone and everyone to join the roster. Some of theses appraisers will remain on the roster because they are certified others will be taken off the list because they are not. Either way many didn't take any steps to learn FHA requirements and are only guessing at what FHA requires.

When dealing with an FHA appraiser you haven't used before be sure to ask them about their experience in dealing with FHA properties. Ask them when they became FHA approved and what FHA education they have. Every appraiser you use should have taken an FHA course in the past year or so regarding the new requirements.

There are some old school appraisers out there who are not up to date with the new requirements and could delay or kill a deal due to outdated requirements that get marked for repairs or inspections.

Here's a quick recap:

1. Licensed Appraisers can no longer apply for the FHA Roster

2. Only Certified Appraisers will be able to complete FHA appraisals

3. FHA education regarding the changes in FHA requirements is mandatory

4. Make sure your appraiser meets the requirements for FHA

There are many FHA appraisers to choose from. Choose wisely!