The recent changes in the Appraisal Industry have to do with FHA becoming HVCC compliant and implementing an appraiser independence and Appraisal Management Company format.
The FHA has announced a series changes to be implemented by February 15th in Mortgagee Letter 2009-28, stating that “FHA Approved lenders have new responsibilities to ensure that FHA appraisers are ‘…compensated at a rate that is customary and reasonable for appraisal services in the market area…’” and “the fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.” “AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.”
Appraisers are hoping this this FHA policy will help to keep appraisers fees reasonable and not so low that appraisers are forced to leave the profession for lack of compensation and inability to bring in a living wage.
Also, locally it appears that market values throughout most neighborhoods in Santa Cruz county appear to be levelling out and stabalizing over the past 3-6 months. This means that appraisers are no longer having to use “negative time adjustments” in our reports.
Posted by Kristina Campbell, Coast Home Appraisal, 831-247-7223
