Saturday, March 28, 2009

FHA Requires Two 90 Day Old Sales Comparables Starting April 1st

FHA appraisal standards increase.

The Federal Housing Administration Washington D.C. is implementing Fannie Mae and Freddie Mac requirements for appraisers to use when collecting information about property values in distressed or declining markets.

Starting on April 1 appraisers on FHA loans need to include the Fannie Mae and Freddie Mac addendum regarding market conditions in declining markets.

In distressed or declining housing markets (most of the country) FHA would like FHA appraisers to include at least two comparable sales that have closed within 90 days.

In a letter to lenders and appraisers current FHA administrator Brian Montgomery stated "As home prices continue to decline in many housing markets throughout the country due to job losses and increased foreclosed, FHA finds it necessary and prudent to set additional guidance for collateral assessment practices for properties located in a declining market,"

Posted by gilkerk ( FHA, Lender Gossip, Government Home Loans, Home Appraisals, Homeownership, Housing Bottom, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, Housing Recovery, FHA Appraisals, FHA Appraisers, HUD Owned Homes ) :: Permalink :: Trackbacks (0)