FHA issued Mortgagee Letter 2021-17, revising property and appraisal quality control review requirements. Per the Mortgagee Letter, FHA revised requirements with respect to appraisal field reviews and evaluation of property and appraisal documentation. Specifically, FHA:
- Decreased the appraisal field review requirements for early payment defaults from 100% to 10%;
- Reinforced appraisal field review requirements for discretionary targeting and other specific risk factors; and
- Clarified property and appraisal QC review guidelines.
In addition, FHA announced the expiration of the temporary waiver of single family quality control requirements for appraisal field reviews issued on December 4, 2020. The temporary waiver remains applicable to mortgages selected for QC review through June 30, 2021 and expires after such date.
Click to view the FHA Mortgagee Letter 2021-17: https://www.tenaco.com/wp-content/uploads/2021/07/FHA-Mortgagee-Letter-2021-17-06-30-21.pdf
