April 08, 2020
AI Asks FHFA to Rethink Non-GSE Appraisal Requirements
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.