HUD just released a mortgagee letter today (2009-28) that goes into effect 1/1/10.
The new requirements set forth in this mortgagee letter will be effective for all case numbers assigned on or after January 1, 2010. The existing requirements will remain in effect.
New Requirements
Prohibition of mortgage brokers and commission based lender staff from the appraisal process
Historically FHA prohibited mortgagees from accepting appraisal reports completed by an appraiser selected, retained or compensated, in any manner by real estate agents. To ensure appraiser independence, FHA-approved lenders are now prohibited from accepting appraisals prepared by FHA Roster appraisers who are selected, retained or compensated in any manner by a mortgage broker or any member of a lender’s staff who is compensated on a commission basis tied to the successful completion of a loan.
...but wait! There's more... Scott DiBiasio at AI posted another excerpt:
Specifically, under Mortgagee Letter 09-28, FHA lenders must ensure that:
· FHA Appraisers are not prohibited by the lender, AMC or other third party, from recording the fee the appraiser was paid for the performance of the appraisal in the appraisal report.
· FHA Roster appraisers are compensated at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.
· The fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.
· Any management fees charged by an AMC or other third party must be for actual services related to ordering, processing or reviewing of appraisals performed for FHA financing.
· AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.
