FHA issued Mortgagee Letter 2024-07, updating FHA’s reconsideration of value policy (ROV). Per the Mortgagee Letter (ML), FHA:
- Revised appraisal material deficiencies to include potential violations of fair housing laws and professional standards related to nondiscrimination in ordering a second appraisal;
- Added language about forgoing communication with an appraiser about a material deficiency and reporting an appraisal replaced due to a material deficiency in ordering a second appraisal;
- Added specific expectations regarding the underwriter’s training and identification of deficiencies;
- Added borrower-initiated ROV processing requirements in reconsideration of value;
- Added quality control standards for the appraisal review and the reconsideration of value; and
- Added appraiser standards for responding to the DE underwriter requests.
The provisions of this ML are effective for FHA case numbers assigned on or after September 2, 2024 (these provisions may, however, be implemented immediately).
Click to view the FHA Mortgagee Letter 2024-07: https://www.tenaco.com/wp-content/uploads/2024/05/FHA-Mortgagee-Letter-2024-07-05-01-24.pdf
Click to view the FHA Info #2024-24: https://www.tenaco.com/wp-content/uploads/2024/05/FHA-Info-2024-24-05-01-24.pdf
