FHA Fixes Appraisal Rules for Feb. 15 Start Date

Federal Housing Administration is moving ahead with the implementation of its appraisal reforms after making accommodations for mortgage brokers to secure a case number. The new FHA rules are designed to shield appraisers from loan officer and mortgage broker pressure by prohibiting these parties from selecting appraisers. Starting Feb. 15, brokers can secure a case number for FHA loans online without inputting appraiser information. Previously, a broker or LO had to input appraiser information to get a case number assignment from the agency's 'FHA Connection' website. FHA delayed the original Jan. 1 effective date to address mortgage broker concerns. Under the new regime, the FHA-approved lender can input the appraiser information when the appraisal is completed. This approach preserves the mortgage broker's ability to get FHA case numbers and shop loans to several wholesalers. The new appraisal rules still require changes for brokers and LOs but "they made it as easy as possible," said mortgage consultant Brian Chapelle of Potomac Partners, Washington.