On September 18th 2009, the US Department of Housing and Urban Development (HUD) announced new appraiser independence guidelines as it relates to FHA loans which are scheduled to take effect January 1st 2010. The new FHA requirements are focused on appraiser independence and appraiser engagement very similar to HVCC regulations which went into effect on May 1st 2009 for conventional loans. Among other items, the new requirements also state a DE underwriter must be allowed to discuss and request clarification on an appraisal report directly with the appraiser. New regulations also require assurance that appraisers be compensated at a rate which is customary and reasonable for appraisal services performed in their local market area.

HUD also released letters detailing new requirements for Appraisal Portability and Appraisal Validity Periods.

So what does this mean to you?

Starting January 1st 2010 - lenders will be required to be compliant with these new regulations for all FHA loans

As your Next Generation Appraisal Management partner, we are here to help you.

• Solidifi believes appraisal Quality starts with paying professional appraisers their full fee for Quality work
• Work with your existing appraiser network exclusively, our national network or both – You decide
• Solidifi provides flexible technology that enhances your appraisal process
• Proactive compliance solutions to ensure your company always protected on ever-changing regulations and new guidelines

Today, many of our clients are already seamlessly ordering both FHA & Conventional/HVCC compliant appraisal products using Solidifi’s Next Generation appraisal management services.

We believe appraisal quality starts with paying appraisers their full fee for quality work and allowing appraisers to publicly set their own local market rate on our network. Allowing appraisers to openly complete for a lender’s business based on consistently delivering high quality work at a fair market rate in a reasonable time frame.

Further, we believe lenders with compliant controls in place should have the flexibility to be able to openly discuss and request clarification directly with an appraiser in a transparent manner.

Solidifi will release a summary document of the new FHA regulation in the coming weeks in an effort to help you manage this process. Look for an invitation to attend one of our upcoming information sessions on the new FHA regulation and how it may impact your business.

Should you need more information on the recent HUD announcement or want to explore how Solidifi can assist you with your FHA and HVCC compliance needs please contact us at directly at 866 807 7438 or visit www.solidifi.com to obtain more information and to obtain a copy of the recent HUD announcements.