FHA Announces Electronic Appraisal Delivery Portal

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Filed under: Appraisals, FHA Loans

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The Federal Housing Administration recently announced Mortgagee Letter 2015-08, which is an Electronic Appraisal Delivery Portal for FHA-Insured Single Family Mortgages.

The letter provides information about the portal and its mandatory use with FHA case numbers assigned on and after June 27, 2016.

The main function of the EAD portal will make it easier to do business with FHA by offering process and technology efficiencies  that streamline appraisal data transmission, promote quality up-front appraisal data, and reduce post-endorsement appraisal data corrections.

In addition, the EAD portal will allow transmissions to FHA of only those appraisals that comply with FHA’s Single Family Housing Appraisal Report and Data Delivery Guide.

This portal will provide a confirmation of a successful submission, or information regarding required corrections that might need to be made before re-submitting and transmitting to FHA.

Successfully transmitted appraisal reports to FHA through the portal will then allow sharing between the portal and FHA Connection, which will then allow the population of certain data fields on the FHA Connection Appraisal Logging screen.

Mortgagee Letter 2015-08 also explained that:

• Appraisals submitted through the EAD portal remain subject to a review for compliance with FHA appraisal requirements
• Mortgagees remain responsible for proper underwriting of the appraisal and for ensuring the property meets FHA’s minimum property requirements and standards for serving as security for the FHA-insured mortgage
• The appraiser remains accountable for appraisal quality, credibility, and compliance with FHA appraisal requirements

And, once an individual appraisal is submitted, whether through the EAD portal or through the existing process until the mandatory effective date, the appraisal submitted becomes the appraisal of record.

In addition, FHA will incorporate the EAD portal into the Single Family Housing Policy Handbook in the future.

If you have any questions about this or any other aspect of mortgage lending, just let me know!

Source: http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_FHA_INFO_15-20.pdf

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