House Passes Bill to allow Licensed Appraisers to Complete FHA Appraisals; Sends to Senate

House Passes Bill to allow Licensed Appraisers to Complete FHA Appraisals; Sends to Senate“The Homebuyer Assistance Act of 2019”, which is designed to address the current shortage of certified appraisers (particularly for FHA mortgages), was recently passed in the U.S. House by a vote of 419-5 and has been sent to the Senate for consideration.

This new bill—also known as H.R. 2852—was introduced by U.S. Representative Brad Sherman (D-CA) and would reduce the number of hurdles that appraisers currently face before being permitted to perform appraisals for FHA mortgages. It would do this by bringing the Federal standards for FHA appraisers in-line with the minimum requirements already in place for other mortgage-types (such as those involving Fannie Mae and Freddie Mac), which would allow state-licensed appraisers to conduct FHA appraisals.

As it currently stands, the National Housing Act of 2008 only allows certified appraisers (who must meet higher qualifications) to perform FHA appraisals. Prior to this law, both licensed and certified appraisers could perform FHA appraisals, which the House clearly believes is the answer to the severe appraiser shortages being experienced for this loan-type.

For more information on “The Homebuyer Assistance Act of 2019”, including the latest updates as they become available, please reference the bill’s official webpage.

 

Sources:
The MReport – themreport.com
Financial Regulation News – financialregnews.com
The Appraisal Foundation – appraisalfoundation.org
American Society of Appraisers – appraisers.org
U.S. House Committee on Financial Services – financialservices.house.gov

Topics: Lenders, Appraisers, AMCs, Compliance, residential mortgage industry, Regulations