HUD Updates Appraiser Qualification, Appraisal Reporting Requirements

WASHINGTON – Changes implemented by the Department of Housing and Urban Development to the agency’s qualifications for appraisers for placement on the FHA Single Family Appraiser Roster became effective June 16. The final rule provides for: * a 12-month phase in of Appraiser Qualifications Board requirements for appraisers listed on the appraiser roster – an appraiser who is included on the Appraiser Roster on June 16, 2003 but who does not meet the Appraiser Qualifications Board licensing and certification requirements, has until June 16, 2004 to comply with the criteria and submit evidence to HUD * automatic suspension of appraisers licensed or certified in multiple states and whose license or certification has been revoked, suspended or surrendered due to a state disciplinary action, will be automatically removed from the Appraiser Roster; * clarification of the scope of automatic suspensions that are not due to state disciplinary action. The removal of an appraiser’s named from the Appraiser Roster will remain in effect until HUD received proof of the appraiser license with certification renewal. The appraiser can continue to perform FHA appraisals in other states where the appraiser is licensed or certified. Earlier this year, effective Jan. 1, 2003, HUD amended the section in its handbook regarding appraisal reporting requirements. The Uniformed Standards Professional Appraiser Practice (USPAP) modified HUD’s Standards Rule 1-5 to require appraisers to analyze all prior sales of the property within the past three years. Appraisers are now required to report and analyze all sales of the property being appraised within three years prior to the effective date of the appraisal; and all sales of comparable properties that occurred within one year prior to the effective date of the appraisal. The entire published final rule can reviewed at Web site www.gpoaccess.gov/fr/index.html.