Dart Discusses Appraisal Changes on Reverse Mortgages
The Federal Housing Administration, FHA, announced effective 10/1/2018 they will require a second appraisal on select reverse mortgage loans that are flagged by the agency as having the potential for an inflated property valuation.
FHA shared that out of the 134,000 appraisals input into their automated valuation model, approximately 50,000 or 37% were inaccurate by at least 3%.
FHA commissioner Brian Montgomery said, “We are trying to understand why in a still relatively low interest rate market where house prices have returned in most major markets including in many of the states where reverse mortgages were, why were still hemorrhaging money. We thought this was a contributing factor that required due diligence.”
FHA Deputy Assistant Secretary, Gisele Roget stated implementing a valuation assessment is a step forward for the reverse mortgage industry.
Dart Appraisal has a significant roster of experienced FHA appraisers nationwide. We are committed to obtaining quality appraisals for our clients. We invite financial institutions who have had FHA appraisal issues to contact us for assistance.
Dart Appraisal is a leading Nationwide Appraisal Management Company, that provides both residential and commercial appraisal services. We create custom solutions to meet our clients’ unique needs through innovative technology and unparalleled customer service.
Contact us today at (248) 273-8640 or firstname.lastname@example.org.