AI Asks FHFA to Rethink Non-GSE Appraisal Requirements
April 8, 2020 12:30 PM
The Appraisal Institute was one of four valuation organizations that urged the Federal Housing Finance Agency on April 6 to re-evaluate its current policies on interior and exterior inspection appraisals for refinance transactions not currently held by the government-sponsored enterprises.
“With more of the country ordered to shelter in place, we are hearing from our membership they are increasingly not being allowed to enter the house by the homeowner or are declining to enter the house out of an abundance of caution,” the organizations’ letter stated.
“While most states have treated appraisers as essential workers under stay-at-home orders, some have issued guidance that is unclear and may not allow in-person business operations, including inspections,” the letter stated. “This may deprive homeowners from entire states of opportunities to refinance their mortgage into a lower rate and reduce monthly housing costs, consolidate debt or tap into equity that might tide them over during this crisis.”
The organizations urged the FHFA to consider enhanced assignment conditions that could be added to exterior-only appraisal assignments in order to ease concerns about balance sheet transfer risk.
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The Appraisal Institute is a global professional association of real estate appraisers, with over 17,000 professionals in almost 50 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.