Heads up from this Austin Realtor about upcoming FHA changes. The reduction of appraisal validity period from six to four months is a significant change. Lori
Marie Funston with Coldwell Banker Mortgage always keeps us updated on changes in the lending industry (which this past year has been numerous). For further information you can reach her at 512-750-7270 or marie@austinmortgageadvisor.com. Her latest advisory is about the new FHA Requirements being implemented as of January 1,2010:
Effective for FHA case numbers issue as of January 1, 2010, there are new requirements for FHA case numbers affecting all lenders originating FHA-insured mortgages:
The new FHA requirements are in line with the Home Valuation Code of Conduct (HVCC), which became effective May 1, 2009, on conventional loans.
Here is a brief summary of the new FHA appraisal rules:
- The appraisal validity period is reduced to four months for all property types. Previously, appraisals were valid for six months on existing properties and up to 12 months for new construction.
- Appraisal portability. When a customer switches from one lender to the other, the first lender must transfer the appraisal to the second lender at the customer's request to prevent delays in closing.
- Loan production staff is prohibited from selecting or recommending an FHA-roster appraiser. This includes anyone who is compensated for closing a loan, such as an originator (loan officer), loan processor, or anyone reporting to a member of the production staff.
- Loan production staff is prohibited from communicating with the appraiser.
Dorie in
Austin
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Lori is a residential Realtor with Chinowth & Cohen Realtors serving the greater Tulsa area and specializing in downtown Tulsa and midtown Tulsa real estate.
Thank you, Lori, for passing this along. I wonder if the four months validity for the appraisal will be followed by a requirement to go back only four months instead of six when doing an fha appraisal.
Nancy - that's a good question - hope someone answers it. Will post more if I find out.
Lori, we have an office meeting next week on this. My broker's wife is an underwriter for a local bank/mortgage company and I will contact her today on the appraisal question. For some years I have been doing CMA's based on 3 months history, and I pay close attenyion to actives for the computation of a absorption rate. I have always flet that 6 months back is ancient history especially in November. Does anyone thinbk that a house sold in June has much to do with a December closing?
Joe, will look forward to what you find out. But can a home selling in April compare to one sold in January?