Solidifi, a technology-focused appraisal management company, has announced its compliance with the new Federal Housing Administration (FHA) Appraiser Independence and Appraiser Engagement regulations announced last month by the Department of Housing and Urban Development (HUD). The new rules are very similar to the Home Valuation Code of Conduct (HVCC) regulations and apply to all FHA loans in process after January 1, 2010.
The new FHA guidelines require that appraisers be compensated at rates that are reasonable and customary in their markets, which means that traditional appraisal management companies (AMCs) will either have to modify their business models, charge far more for appraisals, or simply go out of business.
The new FHA rules are also causing lender concerns regarding operational and efficiency losses due to potential extended turn times when trying to procure and manage FHA case numbers. With the new FHA rules, loan originators will no longer be able to generate the FHA case number, and this task will fall to the non-production staff, causing newly introduced inefficiencies in ordering appraisals.
Solidifi says its appraisal management service delivers faster-than-industry turnaround times and provides an FHA case number workflow tool to driver internal efficiencies and allow for an easy transition to the new regulations.