FHA Single Family Housing Policy Handbook 4000.1, Part I — e. Post-approval Requirements (04/10/2025)

FHA Single Family Housing Policy Handbook 4000.1, Part I — e. Post-approval Requirements (04/10/2025)

e. Post-approval Requirements (04/10/2025) When completing any FHA assignment, the Appraiser must have a valid appraisal credential and be in good standing on the FHA Appraiser Roster for the state in which the Property is located. The Appraiser must maintain their personal and business information updated in FHAC, fully conform with Eligibility Requirements, and comply with the following requirements and restrictions. i. Compliance with Law The Appraiser’s performance must comply with all applicable federal, state, and local laws. The Appraiser must adhere to all state and local laws relating to appraisal, licensing, and certification requirements. ii. Appraiser Competency Requirement The Appraiser assigned to provide the appraisal must be able to complete an assignment for the property type, assignment type, and geographic location of the subject Property. The Appraiser must comply with USPAP, including the Competency Rule, when conducting appraisals of Properties intended as security for FHA-insured financing. iii. Communications with Appraisers An FHA Roster Appraiser must avoid conflicts of interest and the appearance of conflicts of interest. To avoid conflicts of interest and/or the appearance of conflicts of interest, the Appraiser must not be unduly influenced by: • a member of a Mortgagee’s loan production staff or any other person who is compensated based upon the successful completion of a loan; or I. DOING BUSINESS WITH FHA B. Other Participants 1. FHA Appraiser Roster Handbook 4000.1 79 Last Revised: 11/26/2025 • anyone who reports ultimately to any officer of the Mortgagee not independent of the loan production staff and process. The Appraiser is bound by the confidentiality provisions of USPAP and may not discuss the value or conclusions of the appraisal with anyone other than the Direct Endorsement (DE) underwriter or FHA staff or their representatives. The Appraiser may discuss components of the appraisal that influence its quality and value with the DE underwriter who has responsibility for underwriting the case. The Appraiser may interact with real estate agents and others, during the normal course of business, to provide property access, information and other market data. iv. Appraisal Fees The Appraiser and the Mortgagee or Mortgagee-designated third party will negotiate the appraisal fees and due date. FHA does not establish appraisal fees or due dates. v. Obligation to Report to FHA (A) Professional Appraisal Organizations The Appraiser may be a member or hold designations in professional appraisal organizations. If the Appraiser is a member, candidate or associate of an appraisal organization, the Appraiser must report, by calling 1-800-CALLFHA (1-800-225- 5342) or sending an email to [email protected], any adjudicated actions resulting in a disciplinary action, or the suspension of the Appraiser, to FHA within 14 Days of such action. On disposition or adjudication of the action, the Appraiser must provide FHA with documentation and official Findings. FHA may consider sanctions, including removal of an Appraiser found guilty of professional misconduct as adjudicated by a professional appraisal organization. (B) Safeguards for Appraiser Independence The Appraiser must report attempts to influence independence to [email protected] or by calling 1-800-CALLFHA (1-800-225-5342). In addition, the appraiser must report the attempts to HUD OIG Hotline (1-800-347-3735). Mortgagees, Appraisal Management Companies (AMC) and third parties are prohibited from influencing the independence of the Appraiser and the valuation process. Prohibited acts and attempts to influence the results of an appraisal include the following: • withholding or threatening to withhold timely payment or partial payment for an appraisal report; • withholding or threatening to withhold future business from an Appraiser, or demoting, terminating or threatening to demote or terminate an Appraiser; • making expressed or implied promises of future business, promotions or increased compensation for an Appraiser; I. DOING BUSINESS WITH FHA B. Other Participants 1. FHA Appraiser Roster Handbook 4000.1 80 Last Revised: 11/26/2025 • conditioning the ordering of an appraisal report or the payment of an appraisal fee, salary, or bonus on the opinion, conclusion or valuation to be reached, or on a preliminary value estimate requested from an Appraiser; • requesting that an Appraiser provide an estimated, predetermined or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that an Appraiser provide estimated values or comparable sales at any time prior to the Appraiser’s completion of an appraisal report; • providing the Appraiser with an anticipated, estimated, encouraged or desired value for a subject Property, or a proposed or target amount to be loaned to the Borrower, except for a copy of the sales contract for purchase and any addendum, which must be provided; • providing the Appraiser, appraisal company, AMC or any entity or person related to the Appraiser, with stock or other financial or nonfinancial benefits; • allowing the removal of an Appraiser from a list of qualified Appraisers or the addition of an Appraiser to an exclusionary list of qualified appraisers, used by any entity, without prompt written notice to the Appraiser that includes written evidence of the Appraiser’s illegal conduct, violation of USPAP or state licensing standards, improper or unprofessional behavior or other substantive reason for removal; • ordering, obtaining, using, or paying for a second or subsequent appraisal or Automated Valuation Model (AVM) in connection with a mortgage financing transaction, unless: o there is a reasonable basis to believe that the initial appraisal was flawed or tainted and such appraisal is clearly and appropriately noted in the loan file; or o such appraisal or AVM was completed pursuant to a written, preestablished bona fide pre- or post-funding appraisal review, quality control process or underwriting guidelines and the Mortgagee adheres to a policy of selecting the most reliable appraisal, rather than the appraisal that states the highest value; and • any other act or practice that impairs or attempts to impair an Appraiser’s independence, objectivity, impartiality or violates law or regulation, including, the Truth in Lending Act (TILA), Regulation Z and USPAP. (C) Roster Appraiser Administrative Responsibilities The FHA Roster Appraiser has the administrative responsibility to keep their personal and business information up to date via FHA Connection (FHAC). The FHA Roster Appraiser’s contact information must include their mailing address, phone number, and email address. The FHA Roster Appraiser’s credentials must be current before completing an appraisal for FHA. I. DOING BUSINESS WITH FHA B. Other Participants 2. 203(k) Consultants Handbook 4000.1 81 Last Revised: 11/26/2025 2. 203(k) Consultants a. Definition (11/07/2023) 203(k) Consultant refers to a person approved and active in the FHA 203(k) Consultant Roster, who, when engaged by a Mortgagee, conducts a personal on-site inspection of the Property to conduct Consultant functions in the 203(k) program.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part I — e. Post-approval Requirements (04/10/2025) · source URL · snapshot 8c03836f77f317e1