FHA Changes coming January 1st,2010
Appraisals
Appraisals will be valid for 120 days now – old rule was 6 months (168 days)
FHA Appraisals can be transferred from one lender to another per the borrowers request.
FHA recognizes that the second lender may need to order a new appraisal but only under limited conditions
- The underwriter for the second lender finds material defect with the original appraisal
- The original appraiser is on the second lenders exclusionary list
- The first lender fails to provide a copy of the appraisal in a timely manner, which causes potential harm to the borrower through events outside the borrowers control. The events would be rate lock expiring, or purchase contract, close of escrow expiring or foreclosure proceedings.
