FHA Inspection Certification
In general, all loans insured by the Federal Housing Administration require an appraisal of the property that will secure the mortgage. The inspection must be conducted by a qualified individual--an FHA-approved appraiser. All appraisers must meet certain eligibility requirements to gain certification.
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History
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Prior to October 1, 2008, FHA accepted appraisers so long as they were licensed by their state and met minimum criteria issued by the Appraiser Qualifications Board (AQB). FHA maintained a roster of approved appraisers and updated their credential requirements, allowing only state-certified general or certified residential appraisers to apply to be on the roster.
Identification
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The new law regarding FHA inspector certification is found in the Housing and Economic Recovery Act of 2008 (HERA). It mandates that all FHA roster appraisers in all states and territories be certified and meet verifiable education in appraisal requirements, according to HUD.
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Criteria
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In order to be eligible to become an FHA-approved appraiser/inspector, an individual may not be listed on any federal sanctions list, such as HUD's Limited Denial of Participation (LDP) list or Credit Alert Verification Reporting System (CAIVRS). To become state-certified, an appraiser must meet education and experience requirements set forth by their state/territory's appraisal regulatory agency, according to HUD.
Features
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A state-certified appraiser receives a certification number from the Appraisal Subcommittee (ASC), which maintains a national registry. FHA uses the registry to confirm the appraiser's credentials before approving them. The registry assigns the certification number which the appraiser must use on FHA Connection to manage their information with FHA.
Warning
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FHA-certified appraisers must remain impartial. They may not accept compensation for an FHA appraisal from a mortgage broker, or an associate of the FHA lender who will be compensated by the completion of the loan, according to Real Estate Appraisal Information.
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References
- Photo Credit building inspector,woman image by Greg Pickens from Fotolia.com
