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I will have to study these much more. Have not done much for FHA in a while.
Gene, Thanks for the info. We're doing more FHA's in our area now, so it's good to stay familiar with their guidelines.
Thanks so much for the post, Gene! Let's hope these changes improve the quality of FHA appraisals!
Gene, these new rules are beginning the create challenging issues in the transaction especially if the inspection has been completed by the buyer and all issues were resolved by both parties. At the same time, we are hearing from appraisers that in some instances these new requirements are our of their scope of expertise and hence scope of work and license. What are you seeing?
Vern: Hope the post proves educational and beneficial to you. Let me know if I can answer any questions or be of assistance to you. Thanks for commenting ...
Joyce: I think FHA has seen an uptick in many places. Glad you found the info beneficial. Staying on top of trends and new regulations is so important in our industry these days!
Ed: You're welcome! And I definitely agree with you. Improvements are needed ... and hopefully these more clearly defined classifications will help accomplish those improvements.
Happy Holidays!
Gene
Gene -- thank you for doing the homework on this and making this information available to all of us in a clear manner. (I think I saw something about this a while back, but it was no where near as clearly set forth.)
Gene ...some very useful information here .. unfortuntatley I still see this as a matter of opininon with a lot of option for interperetations of condition by the appraiser
Emily: Appraisers are saying that they shouldn't be asked to make these rating judgments?? I'd say this is a little over-reactive on the appraisers part. I have not heard that here locally. And JMO, but if they are not willing to make these determinations they probably shouldn't be in the business. This isn't rocket science. These judgments shouldn't be beyond their expertise. Again, JMO ... but as a former appraiser, I believe this ...
Keep me posted on what you hear and see with the changes coming after the first of the year. Perhaps with some time they will become more comfortable with doing this?
Thanks, Emily ...
Gene
Corinne: You never know what the future holds, so being aware is always a good proactive move. Hope the New Year proves to be very busy and prosperous for us all ...
Steven: Glad this proved helpful. I'm glad that you and other mortgage professionals are here on the Rain. We can truly benefit one-another and help educate each other too. Happy Holidays to you ...
Appraisals are an opinion, no doubt. But hopefully these classifications are pretty clearly defined and cut down on the more loosely-interpreted judgement calls. Time will tell ...
Gene
Gene - I'm actually glad that FHA is going the way of UAD. Back in September, I had blogged about my concerns with UAD for conventional loans and I have to say that I haven't had any major issues with UAD (other than the expected ones).
That's not to say that my conventional borrowers and I haven't received some low appraisals since September (we have). But in those cases they were expected because I made sure going in that my borrowers understood that I felt there were going to be value issues and that their purchase offer was too high - and I was right! While I am no appraiser, I can most certainly run comps and make an educated assessment on anticipated appraised value - and get pretty darn close too!
However, I have been a little surprised (in a good way) with the way that the conditions were reported on the conventional appraisals I have seen recently. It still may be a little too soon to say this but I think that UAD could possible clear up a lot of those issues where incompetent appraisers are appraising rehabbed, move-in ready, equity sale properties to run-down, dilapidated, dumpy, REOs with little to no adjustments in value. JMHO
Donne: Time will tell as to how many ills this will cure. But I remain hopeful that, if implemented well and correctly, many issues should disappear. It should not be beyond the scope and expertise of appraisers to master this. And I do not doubt for one minute that you have a full-grasp on the property values in your area. It's the intelligent thing to do ... and also makes the lending process go much more smoothly for ourselves and our clients. Who doesn't want that?? Who wouldn't take the time to obtain some property info and knowledge? We have the ability to make our own lives easier by doing this. I'm keeping my ear to the ground on this issue. Will be very interested to see how impressions of it develop.
Gene
This should be interesting. I wonder if making these judgement call will be part of continuing ed for appraisers.
No doubt it will be covered in those sessions, Mona. And rightfully so. Making sure that appraisers know and understand fully the definitions of each classification will be imperitive. And as I've said prior, only time will tell if this new change meets the test ...
Happy Holidays!
Gene
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