The Positive Change in FHA Appraiser Guidelines

There some new guidelines for FHA appraisals that were introduced February 15, 2010. The new FHA appraiser guidelines were delayed from the original which was in January, but had to be delayed so that lenders would have time to adjust to all changes. The new FHA guidelines were implemented according to the Freddie Mac and Fannie Mae guidelines which stated that appraisers were entitled to fair compensation for the service they provide, but they were not allowed to work directly for any lending agencies.

The FHA appraisal guidelines also required the appraisers to be familiar with the area in which they were doing the appraisal. This was the only way to keep things even because lenders were complaining that appraisers didn't know some areas as well as others. This is important so that the appraiser know what is common to the area, and they will know where to add addendums if there were any major changes.

One other major positive change in FHA appraisal guidelines that I wholeheartedly believe in is the change that prohibited mortgage brokers from ordering their own appraisals for an FHA property. There are now around 51,000 FHA appraisers nationwide that can be chosen from the list, so there really shouldn't be a problem. It was believed at some point that those brokers who had close relationships with appraiser would probably protest the changes, but in reality the broker no longer get to choose.

The sad part is, with all of the changes in the industry that were negative one would tend to believe that these would be seen as a positive. The changes were made to hold everyone accountable for what is happening, and it is not to be taken lightly. According to Jeff Schurman, the executive director of TAVMA, the Title/Appraiser Vender Management Association, says that these changes may cause a ripple effect with work going to those appraisers that are less experienced until everyone can grasp the extent of these changes. In addition, with changes always come initial time delays until everything is figured out.

I believe that the changes are positive, and we will see changes continue to be made. These changes are positive, so homeowners need to be grateful for that. Time may be an issue but certainly we can make headway regardless of this. The FHA appraisal guidelines were changed to prevent the same thing from happening that we are seeing now. This will aid in preventing inflated appraisals to pass loans through, and force those who are uncomfortable to find another profession.