If you think rules on mortgages and appraisal will loosen up, think again. This is just what we need: tougher rules when it comes to tougher appraisals.
In most of these situations, a second appraisal is needed. Here is one of the problems that is showing up when a second appraisal is required on certain FHA loans, the borrower can’t pay for it. The mortgage broker is prohibited for paying for it. Also, the lender doesn’t want to pay for it. OK, who is left?
Prior to all of these new rules and guidelines, I paid for many second appraisals, today this would be a violation and we would be out of compliance. It seems like if we burp wrong we are out of compliance.
By: Brian Collins
"The Federal Deposit Insurance Corp. has approved a final rule that imposes new appraisal requirements on lenders in mortgage transactions where the homebuyer is being charged a higher-than-normal mortgage rate."