We had a very interesting meeting with the FHA last week. One of the most interesting things, to me, was the ways they have to monitor appraisers and lenders.
The FHA has a system to track all properties, lenders and appraisers. They watch to see if multiple appraisals are being done on a property. They watch to see which lender and which appraiser is involved with which property. And, they have a number of mechanisms to alert them to mischief.
As the FHA continues to be a larger and growing part of the residential real estate finance market, it will be ever more important to keep ones relationship with them on good standing.
Attending one of their current presentations is highly recommended.
Rlaph Olsen, IFA
Pacific West Appraisal Services, Inc
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The FHA was in town last week. They had a lot to say. Now that they are on the rise as a lending opportunity, after having been on the decline for years, they have lots of news for us all about how they expect their work to be done.
First of all, as of November 1, 2008, all FHA appraisals done on properties in Washington State have to be done by a CERTIFIED appraiser. No longer will appraisals from Licensed appraisers be acceptable. NO EXCEPTIONS.
In Oregon the date that all FHA appraisals have to be done by a CERTIFIED appraiser is September 30, 2009.
Perhaps the most important aspect of this for lenders is that the FHA checks the licensee status of all appraisers regularly. If an appraisal is submitted after these dates, and it is not by a CERTIFIED appraiser, they will reject the appraisal, you’ll have to start over again. It will cost more money and time.
Ralph Olsen, IFA
Pacific West Appraisal Services, Inc.
pwas.net
Popularity: 45% [?]
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I had been asked by a lender to use the 1004D for FHA repairs completion reporting recently. I did. I also was asked by another lender to use a special HUD report for completion of repairs. But, they didn’t know the name of the form.
I called HUD and they said they do not use the 1004D. They use the Compliance Inspection Report (CIR). Although the old V.C. report (Valuation Contingency) is no longer in use, the CIR is the report to use for compliance inspections for HUD.
Also, the Rose City chapter of the National Association of Independent Fee Appraisers will be hosting an instructor from the Santa Ana office of HUD who will be presenting a class at Clackamas Community College on September 20, 2008. You can see the details at http://www.ifanw.com/education.asp
Ralph Olsen, IFA appraiser
Pacific West Appraisal Services, Inc.
pwas.net
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Mortgage and appraisal fraud continues to be on the rise. The following was taken from the Mortgage Asset Research Institute. To see more from them, go to www.marisolutions.com/resources-news.asp
Some simple “due-diligence” can help you avoid becoming a victim of appraisal or mortgage fraud. It is easy to do.
First, monitor appraisers licenses. Every appraiser must be licensed or certified in the state the subject property (the one being appraised) is located in. Many states have websites that list the appraiser’s name and license status.
Mortgage brokers are often registered with the sate they do business in. Check on their status.
A common practice in mortgage fraud is for a Mortgage Broker, Realtor and Appraiser to collaborate to create an inflated value for a property. Then the loan is processed and funded at the inflated value with each of the participants collecting greater fees than appropriate for the property. The borrower and the lender are the ones that suffer the consequences.
Ralph Olsen, IFA appraiser
Pacific West Appraisal Services, Inc
pwas.net
Popularity: 45% [?]
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