Allregs has issued a synopsis from HUD’s recent mortgagee letter with regard to appraiser independence. Some key guidelines include:
- Non commissioned employees must select the appraiser
- Loan production staff may not have any substantive communication with the appraiser
- Lenders may not attempt to influence the appraiser by threatening the appraiser or withholding payment
- Lenders may not provide appraisers with anticipated value
- Lenders may not add an appraiser to an exclusionary list without written notice and evidence of violations
- Lenders may not order a second appraisal unless there is reasonable evidence that the first appraisal was flawed. Exception: a second appraisal is requested for pre or post closing quality control
These guidelines take effect for case numbers ordered on or after 1/1/2010.
