Select Page

FHA-Appraisal Rules

Beginning on Jan.1 the Federal Housing Administration will implement new rules for appraisals and tighten credit standards. The tighter policy is to ensure the loan guarantees will continue to be funded by premiums paid by borrowers and not taxpayers, even though Federal Housing Commissioner David H. Stevens assures that FHA’s insurance fund is sufficient to cover future losses.

The new policies include guidelines for ordering appraisals that are intended to protect appraisers from pressure by lenders. The new guidelines will ensure FHA appraisal policies are in “full alignment” with rules employed by Fannie Mae and Freddie Mac since May 1, the Department of Housing and Urban Development said in a press release.

The real estate community has complained that new Fannie and Freddie appraisal rules hinders sales from going through since implemented. Critics say that the new rules have forced appraisal management companies to hire appraisers who have little knowledge of the local market.

According to Inman News A spokesman for the Appraisal Institute, a trade association representing appraisers, said that FHA’s new appraisal guidelines differ in some important ways from Fannie and Freddie’s and, if enforced, could alleviate some of the problems experienced with the Home Valuation Code of Conduct.

For the complete article and a list of new rules  please visit

Click here to read the full article on Inman News