My New Blog

Fannie Mae/Freddie Mac/Announce New "Market Conditions" Appraisal addendum!

November 25th, 2008 8:52 AM

Hello NordalAppraisal.com Bloggers!

In an effort to keep abreast of the quickly changing real estate business world I have created my own blog. It's all about business and things that will effect your business, and mine! Read on. There is also a change for appraisal regulation regarding new home construction.

These changes become effective April 1, 2009!

Craig

Freddie announces market conditions addendum

Following a similar move by Fannie Mae, Freddie Mac announced that effective April 1, 2009, a new form -- 71, Market Conditions Addendum – will be required for all mortgages it buys. Other updates to the GSE’s appraisal rules include tweaks to its appraisal requirements for newly constructed homes.

(11/25/2008)

Freddie Mac has issued several appraisal-related updates. (See http://www.freddiemac.com/sell/guide/bulletins/pdf/bll112408.pdf for the full announcement.)

First, effective April 1, 2009, a new form -- 71, Market Conditions Addendum – will be required for all mortgages sold to Freddie Mac with appraisals that have effective dates on or after this date.

The form will be required regardless of property type and inspection type. It is not required for Mortgages with inspection reports, such as mortgages originated with Form 2070, Loan Prospector Condition and Marketability Report, Fannie Mae Form 2075, Desktop Underwriter Property Inspection Report or a Property Inspection Alternative (PIA).

“This new addendum gives direction to appraisers concerning our expected scope of work for appraisals, and provides the Seller with additional details to support the appraiser’s determination of market trends and a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood.”

Fannie Mae announced similar updates to its rules recently.

Freddie has also spelled out updates to its appraisal rules for mortgages involving newly constructed homes.

In its Oct. 17 bulletin, Freddie announced that, effective for mortgages for newly constructed homes with settlement dates on or after Jan. 2, 2009, if the effective date of the appraisal was more than 60 days before the delivery date or settlement date, the seller would have to obtain an appraisal update with an effective date no more than 60 days before the settlement or delivery date.

The GSE said it is revising Chapter K33 to require that for mortgages with settlement dates on or after Jan. 2, 2009, if the effective date of the appraisal is more than 120 days before the effective date of the permanent financing, the seller must provide an appraisal update that meets the requirements of Chapter 44 with an effective date no more than 120 days before the effective date of the permanent financing.

Chapter 44 permits sellers to comply with this appraisal update requirement by having an appraiser complete Form 442, Appraisal Update and/or Completion Report. However, Freddie reminded sellers that the Form 442 may only be used if the market value of the property has not declined since the effective date of the appraisal:

“In today’s unstable property value market, the Form 442 may not be applicable in many instances. If there are changes in the market property values since the effective date of the appraisal or the appraiser determines that one or more different comparable sales are more appropriate, the appraiser must report the results of the appraisal update on the Freddie Mac appraisal report form appropriate for the property type and inspection type and may not use Form 442 as described in Chapter 44.”

Posted by Craig A Nordal on November 25th, 2008 8:52 AMPost a Comment (0)

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FHA Issues New Appraiser Guidelines!! Use State Certified FHA Appraisers!

November 14th, 2008 7:09 PM

Heres the latest on FHA appraisers! If you're using ONLY a state licensed FHA appraiser, think twice! FHA believes they do not have the experience necessary to be on the FHA roster any longer!

As a State Certified FHA Appraiser, who has been on the FHA Roster longer than most appraisers have been in business, you're taking a risk that's not necessary. Use the best, call me!

Craig A. Nordal @760-612-4154 or order that FHA appraisal or estate or divorce appraisal on line at NordalAppraisal.com!

FHA Appraisers


	Information by State Esta página en español Print version

What's New

Effective October 1, 2008, FHA will accept new applications only from state-certified appraisers.

No new applications will be accepted from state-licensed appraisers as a result of the Housing and Economic Recovery Act of 2008, signed July 30, 2008.

FHA will issue a mortgagee letter in the next couple of weeks that will address additional requirements mandated by the new law.

Resources

Reference Materials

	Handbook HUD-4150.2
	Revised Appendix D
	Revised Appendix C
	Revised Appendix A
	Revised Table of Contents
	HOC Reference Guide

Mortgagee Letters

These policy letters update handbook HUD-4150.2:

	08-09 Second appraisals are required; Limits on cash-out
	07-11 FHASecure guidance and appraiser responsibilities
	06-26 FHA exam (obsolete)
	06-24 New HUD-92564-CN "For Your Protection: Get Home Inspection"
	06-09 Revised Appendices A&C
	05-48; Repair & inspections; Revised Appendix D
	05-34 Use of FNMA forms; VC & HS obsolete & other guidance; Revised Appendix D

All HUD policy documents and forms are available in HUDclips. The shortcut is www.hud.gov/hudclips.

Helpful Tools

	Appraisers by lender affiliation
	Appraisers by location, name, license status
	FHA approved lenders
	FHA-approved condominiums
	FHA mortgage limits
	Minimum Property Standards
	Uniform Residential Appraisal Report
	Geological, flood and disaster maps
	Subcontracting Opportunities

ATTENTION!

Effective immediately, licensed appraisers who were approved for placement on the FHA appraiser roster, but who have not kept their roster status current due to the failure to renew an appraisal license, sanctioning or other constraints, and who are now requesting reinstatement to the roster will be treated like new applicants (see "What's New") and, therefore, are NOT ELIGIBLE for reinstatement. Only certified appraisers may request and receive reinstatement on the FHA appraiser roster.

Getting started

	Eligibility requirements
	New applicant instructions - Effective October 1, you must be state-certified residential or state-certified general.
	Check your roster status
	Your responsibilities
	Establish a user ID
	Update your information
	Renew your credentials - Action required or your renewal may not automatically update. Read more.
	Request reinstatement - Effective Oct. 1, FHA will not reinstate licensed appraisers who allowed their roster status to lapse.

Posted by Craig A Nordal on November 14th, 2008 7:09 PMPost a Comment (0)

New FHA Loan Limits Become Permanent!/NordalAppraisal.com

November 11th, 2008 5:57 PM

Hi Friends,

Important new FHA changes, now are permanent! Check it out below!

Craig A. Nordal, NordalAppraisal.com 760-612-4154

HUD Announces New, Permanent FHA Mortgage Loan Limits

RISMEDIA, Nov. 12, 2008-U.S. Department of Housing and Urban Development Secretary Steve Preston announced the new Federal Housing Administration (FHA) mortgage loan limits for single-family homes as prescribed by the Housing and Economic Recovery Act of 2008.

Beginning January 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low cost areas and up to a maximum of $625,500 in high cost areas. The February 2008 Stimulus Package temporarily raised the FHA maximum to $729,750 through December 31, 2008. The new $625,500 maximum, however, represents a significant increase over the $362,790 limit that was in effect prior to the Stimulus Package.

“In today’s environment where access to credit is being restricted, we need to make mortgage loans readily available to households throughout the country, and especially in high-cost areas,” said Preston. “These new loan limits will ensure FHA can to continue help struggling homeowners refinance into safe, affordable government-insured loans, and allow many first-time buyers take advantage of today’s buyers market”

For several years, FHA’s loan levels were below the cost of the average home in communities across the nation. As a result, families who needed FHA mortgage insurance to qualify to buy a home were effectively locked out of the process. In some cases, borrowers turned to exotic subprime loans.

FHA mortgage insurance makes home financing more available to low-income and first time homebuyers. This is because the mortgage is backed by the full faith and credit of the government, freeing lenders from assuming the risk of default.

Higher FHA loan limits do not cost the government any money because the FHA Insurance Fund is fully supported by premiums paid by borrowers who receive FHA-insured mortgage loans.

The Housing and Economic Recovery Act pegs the national conforming mortgage loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009, the national conforming limit will remain at the current level of $417,000.

The Act says that the new FHA loan limits will be set at 115% of the median house price in a given area, as determined by HUD, but can not be lower than 65% of the conforming loan limit (the national floor). Also, the FHA mortgage limit cannot exceed 150% of the national conforming loan limit (the national ceiling).

Home Equity Conversion Mortgages

The Act also pegs the national mortgage limit for FHA-insured reverse mortgages to the national conforming loan limit. The FHA product known as the Home Equity Conversion Mortgage (HECM) will therefore have a national mortgage limit of $417,000. Unlike the new forward mortgage loan limits, the new HECM loans limits are effective on loans insured or after November 6, 2008. This is the first time that a single limit applies to these mortgages nationwide. As in previous years, the special exception areas of Alaska, Hawaii, Guam, and the Virgin Islands may have higher loan limits. Starting in January 2009 counties in those areas may have loan limits of 115% of area median prices, where that amount is above $417,000, up to a ceiling of $625,500.

Reverse mortgages allow homeowners age 62 and older to borrow against the value of their homes without selling them. Homeowners can select a lump-sum payment, monthly payments or tap into a line of credit. No repayment is required as long as a homeowner lives in a home with a reverse mortgage. The reverse mortgage is repaid, with interest, when a homeowner sells the home or dies.

HUD will inform mortgage lenders and brokers of the new limits through a mortgagee letter posted on www.hud.gov and www.fha.gov.

HUD is making available comprehensive listings of the new loan limits in all counties throughout country. Downloadable files are available for FHA Forward Loans, FHA HECM loans, and Fannie Mae and Freddie Mac purchases on the HUD website. The limits are determined by the county in which the property is located, except that for properties located in metropolitan statistical areas the limit is determined by the county with the highest median home price within the metropolitan area.

For more information, visit www.hud.gov.

Posted by Craig A Nordal on November 11th, 2008 5:57 PMPost a Comment (0)