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Due to the regulation changes the industry has faced, we have enacted policies and guidelines based upon the code of ethics set forth by The Appraisal Foundation, USPAP and the Home Valuation Code of Conduct (HVCC). The following are policies that should be adhered to by all clients when placing an appraisal order and assist in making sure all orders are 100% compliant. ¨ All appraisals must be paid for prior to the appointment. We accept Visa, MasterCard, Diner’s Club, Discover or electronic check. No CODs are accepted. ¨ All appraisals not paid for by the customer are the obligation of the order originator. ¨ All correspondence will be done through Coast to Coast Appraisal Management. There is to be no direct contact between loan officers & appraisers. ¨ All orders should be placed through our online system. This system is designed for your convenience and is user friendly. We do not accept faxed appraisal orders. Should you need assistance with placing your order, please contact us. ¨ All requests, case numbers, questions, underwriter conditions and all general correspondence should be submitted to Coast to Coast Appraisal Management as a “file inquiry”. The “file inquiry” tab can be found within the file that the information is pertaining to in our system. **Please see the U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Mortgagee Letter
Beginning February 15, 2010 five new Mortgagee Letters will be in effect addressing several issues and three of the letters specifically address appraisals and several changes occurring for appraisal guidelines for FHA loans.
¨ Appraiser Independence - It will no longer be acceptable for mortgage brokers or commission based lender staff to order FHA appraisals or for mortgage brokers or commission based lender staff to select or request a specific appraiser to complete an FHA appraisal assignment. It will now also be the responsibility of the lender to ensure that the appraiser who completed the report is the same appraiser who was identified in FHA connection when the case number was assigned. Secondly, the letter addressed Appraisal and AMC/Third Party Organization Fees. FHA recognizes that many lenders utilize companies like Coast to Coast Appraisal Management to help ensure appraiser independence on every order. FHA is asking that lenders ensure that appraisers are not prohibited from listing their fee on the report, that appraisers are paid customary fees for the area, the fee for the actual completion of the report does not include AMC fees, any fees charged by the AMC is for work done by the AMC, and that AMC fees are customary for the area.
¨ Appraisal Portability - FHA prohibits “appraiser shopping” where lenders order additional appraisal reports in an effort to seek out highest value or least number of issues reported in the appraisal. They have listed the circumstances where it is acceptable to order a second appraisal as follows: • The first appraisal contains material deficiencies as determined by the Direct Endorsements underwriter for the second lender. • The appraiser performing the first appraisal is on the second lender’s exclusionary list of appraisers. • Failure of the first lender to provide a copy of the appraisal to the second lender in a timely manner would cause a delay in closing, posing potential harm (loss of interest rate lock, purchase contract deadline, foreclosure proceedings, and late fees) to the borrower.
¨ Appraisal Transfer and Change of Client Name in Appraisal Report - If a borrower switches lenders, the first lender must, at the borrower’s request, transfer the case to the second lender. FHA does not require that the client name on the appraisal be changed when it is transferred to another lender. In accordance with USPAP, the lender is NOT permitted to request that the appraiser change the name of the client within the appraisal report unless it is a new appraisal assignment. **If a client name change is needed, the second lender may forward the request to Coast to Coast Appraisal Management. We will send the new request from the new lender to the appraiser to address accordingly. The scope of the work is limited to the client name change. A new client name should include the name of the client (lender) and HUD. |