The Real Deal Miami

New regulations for FHA appraisals won’t be implemented until February

December 23, 2009 04:00PM

New federal rules intended to promote objective appraisals won’t be implemented in time for the New Year as originally planned, according to a memo from the Federal Housing Administration obtained by Housing Wire. The regulations, for which the new implementation date is Feb. 15, prohibit FHA-approved lenders from accepting appraisals by individuals selected by mortgage brokers or other members of their staffs whose pay is tied up in the loan’s success. Previous regulations already prohibited appraisal reports submitted by those chosen or compensated by real estate agents. After the February implementation, lenders will also be responsible for identifying their appraisers in the FHA’s online portal for facilitating transactions with lenders and appraisers. The purpose of the delay is to give lenders and the FHA more time to adjust to the new rules, according to the Department of Housing and Urban Development. [Housing Wire]