FHA issued Mortgagee Letter 2022-11, updating the initial appraisal validity period and extending the appraisal update validity period. Per the Mortgagee Letter, FHA,
- for origination, updated the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report and extended the appraisal update validity period from 240 days to one year from the effective date of the initial appraisal report; and
- for servicing and loss mitigation, updated the initial appraisal validity period from 120 days to 180 days from the effective date of the appraisal report.
FHA also removed the current optional 30-day extension and the requirement that an appraisal update be performed before the initial appraisal has expired.
Revisions related to origination apply to case numbers assigned on or after June 1, 2022. Revisions related to servicing and loss mitigation apply to appraisals with effective dates on or after July 12, 2022.
Click to view the FHA Mortgagee Letter 2022-11: https://www.tenaco.com/wp-content/uploads/2022/07/FHA-Mortgagee-Letter-2022-11-07-12-22.pdf
Click to view the FHA Info #2022-71: https://www.tenaco.com/wp-content/uploads/2022/07/FHA-Info-2022-71-07-12-22.pdf
