Federal Housing Administration (FHA) Appraiser Roster: Appraiser Qualifications for Placement on the FHA Appraiser Roster
Source: | Federal Information & News Dispatch, Inc. |
Final rule.
CFR Part: "24 CFR Part 200"
RIN Number: "RIN 2502-AI96"
Citation: "76 FR 72306"
Document Number: "Docket No. FR-5458-F-02"
"Rules and Regulations"
SUMMARY: On
EFFECTIVE DATE: Effective Date:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background--The Proposed Rule
On
Under HUD's current regulation in 24 CFR 200.202(b), an applicant who wishes to be included on the FHA Appraiser Roster must, among other things, be a state-licensed or state-certified appraiser. Section 1404 of the HERA amended section 202 of the National Housing Act (12 U.S.C. 1708) to mandate that all appraisers chosen or approved to conduct appraisals of properties that will be security for FHA-insured mortgages must be "certified": (1) By the state in which the property to be appraised is located, or by a nationally recognized professional appraisal organization; and (2) have demonstrated verifiable education in the appraisal requirements established by FHA. Under amended section 202(g) of the National Housing Act, licensed appraisers are no longer authorized to conduct appraisals of properties securing an FHA-insured mortgage.
In order to comply with HERA's requirements governing who qualifies as an FHA-approved appraiser, and in order to implement this change in appraiser eligibility requirements in a manner that was not disruptive to the FHA mortgage lending process, ML 2008-39, issued by FHA on
FOOTNOTE 1 Copies of the mortgagee letters referenced in this final rule may be downloaded from http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/. END FOOTNOTE
In addition, HERA provides that appraisers may either be state-certified or certified by a "nationally recognized professional appraisal organization" in order to appear on the Roster. However, in the proposed rule, HUD stated that in order to prevent disruption and to ensure efficient processing of mortgage insurance, HUD will accept only state certification and not the certification of a "nationally recognized professional appraisal organization." HUD determined that state certification sufficiently accomplishes the statutory purpose of ensuring higher quality appraisals.
HUD took the opportunity in the proposed rule to propose the elimination references to the Credit Alert Interactive Voice Response System (CAIVRS). On
II. This Final Rule
This final rule follows publication of the
In order to make the Appraiser Roster regulations consistent with current statute, this final rule removes all references to state licensing and state-licensed appraisers from the regulations in
III. Findings and Certifications
Paperwork Reduction Act
The information collection requirements for this rule have been approved by the
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C.
This final rule would not add any new regulatory burdens on FHA-approved appraisers or applicants for FHA approval. HERA requires that an appraiser be state-certified to be approved by FHA to be on the Appraiser Roster. HUD ceased accepting applications from state-licensed appraisers on
Executive Order 13132, Federalism
Executive Order 13132 (entitled "Federalism") prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on state and local governments and is not required by statute, or the rule preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule will not have federalism implications and would not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) (UMRA) establishes requirements for federal agencies to assess the effects of their regulatory actions on state, local, and Tribal governments, and on the private sector. This rule does not impose any federal mandates on any state, local, or Tribal governments, or on the private sector, within the meaning of UMRA.
Environmental Impact
This final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
Catalogue of Federal Domestic Assistance
The Catalogue of Federal Domestic Assistance Number for the principal FHA single-family mortgage insurance program is 14.117.
List of Subjects in 24 CFR Part 200
Administrative practice and procedure, Claims, Equal employment opportunity, Fair housing, Housing standards, Lead poisoning, Loan programs--housing and community development, Mortgage insurance, Organization and functions (Government agencies), Penalties, Reporting and recordkeeping requirements,
Accordingly, for the reasons stated in the preamble, 24 CFR part 200 is amended to read as follows:
PART 200--INTRODUCTION TO FHA PROGRAMS
1. The authority citation for part 200 continues to read as follows:
Authority: 12 U.S.C. 1702-1715-z-21; 42 U.S.C. 3535(d).
2. In
* * * * *
(b) * * *
(1) You must be a state-certified appraiser with credentials that complied with the applicable certification criteria established by the
(2) * * *
(iii) HUD's Credit Alert Verification Reporting System.
3. In
* * * * *
(a) * * *
(1) * * *
(ii) Losing standing as a state-certified appraiser due to disciplinary action in any state in which the appraiser is certified;
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(c) * * *
(1) Appraisers subject to state disciplinary action. An appraiser whose state certification in any state has been revoked, suspended, or surrendered as a result of a state disciplinary action is automatically suspended from the Appraiser Roster and prohibited from conducting FHA appraisals in any state until HUD receives evidence demonstrating that the state-imposed sanction has been lifted.
(2) Expirations not due to state disciplinary action. An appraiser whose certification in a state has expired is automatically suspended from the Appraiser Roster in that state and may not conduct FHA appraisals in that state until HUD receives evidence that demonstrates renewal, but may continue to perform FHA appraisals in other states in which the appraiser is certified.
* * * * *
Dated:
Acting Assistant Secretary for Housing--
[FR Doc. 2011-30266 Filed 11-22-11;
BILLING CODE 4210-67-P
Copyright: | (c) 2011 Federal Information & News Dispatch, Inc. |
Wordcount: | 1816 |
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