FHA Mortgagee Letter 2025-24 — Mortgagee Letter 2025-24

(B) State Certification The appraiser must provide a PDF image of their current state-issued certification for each state in which the appraiser holds a valid certification. A PDF image of the credential must be uploaded to FHAC with: • the initial application; • the addition of each any new state credentials; and • the upgrade of credential levels. A copy of the current credential is not required for renewals. FHA Appraiser Roster (I.B.1) d. Renewal and Maintenance FHA Appraiser Roster credential records in FHA Connection (FHAC) are automatically validated with the Appraisal Subcommittee’s (ASC) National Registry records and may be updated only when ASC records match the renewal expiration date. Failure of the Appraiser to renew in a timely manner may result in the Appraiser becoming ineligible in the state until the renewed licensing information is validated with the ASC National Registry. Appraisers are expected to confirm their renewals have been reported to ASC and updated in the FHA Appraiser Roster. The Appraiser’s name in FHAC must match the ASC National Registry exactly to facilitate automated updates. FHA will invalidate a state credential in FHAC 30 Days past the expiration date in the ASC National Registry. During this period, Appraisers may continue performing FHA assignments only when they have a valid renewal issued from the state with a credential expiration date after the effective date of the appraisal. Any appraisals performed beyond 30 Days from the state license expiration date in FHAC will receive an unsuccessful submission status in the Electronic Appraisal Delivery (EAD) portal. An inactive Appraiser account may be placed in an archived, read-only status when all of the credentials have expired for at least six months. Appraisers may request reactivation when they have at least one valid state-issued credential by emailing the FHA Resource Center at [email protected] with the following subject line: “FHA Roster Appraiser Credential Renewal”. FHA Appraiser Roster (I.B.1) e. Post-approval Requirements Once an Appraiser is approved for placement on the FHA Appraiser Roster, the Appraiser is assigned a unique FHA Appraiser ID in FHA Connection (FHAC). 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 may obtain a CHUMS account for FHAC access and must maintain their personal and business information in FHAC. They must also fully conform with Eligibility Requirements (I.B.1.c.i) and comply with the following requirements and restrictions. FHA Single Family Housing Policy Handbook 4000.1 Quality Control, Oversight, and Compliance Remedial Education (V.E.5.e.i(B))

(1) Standard FHA may require an Appraiser to take remedial education on appraisal-related topics for failure to comply with the requirements outlined in this Handbook 4000.1. The Appraiser must complete remedial education within 60 Days of the date of notification and provide proof of successful completion. Failure to comply with a remedial education action may result in escalation of the FHA Appraiser Roster action to an administrative removal sanction with ineligible status due to discipline until the conditions of the original action have been satisfied. Removal (V.E.5.e.i(C)) (1) Definition Removal refers to an Appraiser being placed in ineligible status on the FHA Appraiser Roster.

(2) Standard The Appraiser will be ineligible to conduct appraisals for all FHA purposes from the date the sanction was imposed until the Appraiser satisfies the conditions of the removal and is reinstated to good standing on the FHA Appraiser Roster. FHA may remove an Appraiser’s eligibility from the FHA Appraiser Roster for failure to comply with the requirements outlined in this Handbook 4000.1. The Appraiser may be required to take remedial education in addition to the removal. The expiration of a state-issued credential may affect eligibility within the state of the credential and FHA will suspend the Appraiser’s state credential eligibility in FHAC. However, the suspension for an expired credential is not a removal sanction; the Appraiser will be eligible to conduct appraisals in any other state in which the Appraiser has a valid credential on the FHA Appraiser Roster. See Renewal and Maintenance and FHA Connection (FHAC) for applicable eligibility guidance. FHA will notify the state licensing or certification agency in writing when an Appraiser has received a final notice of removal from the FHA Appraiser Roster. HUD will refer Appraisers to these boards if HUD considers the actions to be of such magnitude or frequency as to warrant such referral. 3) Causes Causes for removal include, but are not limited to, any of the following: • significant deficiencies in appraisals, including noncompliance with Civil Rights requirements regarding appraisals; • losing standing as a state-certified Appraiser due to disciplinary action in any state in which the Appraiser is certified • prosecution for committing, attempting to commit, or conspiring to commit fraud, misrepresentation, or any other offense that may reflect on the Appraiser’s character or integrity; • failure to perform appraisal functions in accordance with instructions and standards issued by HUD; • failure to comply with any agreement made between the Appraiser and HUD or with any certification made by the Appraiser; • issuance of a final debarment, suspension, or limited denial of participation; • failure to maintain eligibility requirements for placement on the Appraiser Roster as set forth under this subpart or any other instructions or standards issued by HUD; or • failure to comply with HUD-imposed education requirements. (4) Notice An appraiser that is debarred, suspended, subject to a limited denial of participation, has lost standing as a state-certified Appraiser due to disciplinary action, or has failed to comply with HUD-imposed education requirements will be administratively removed from FHA Appraiser Roster eligibility and notified of the removal. An appraiser that has lost standing as a state-certified Appraiser due to expiration of the state-issued certification will be suspended from FHA Appraiser Roster eligibility in the jurisdiction in which the certification elapsed and notified of the suspension. In all other cases, the Appraiser will be given written notice of the proposed removal, and the notice will include the reasons for the proposed removal and the duration of the proposed removal. (5) Appeal The Appraiser will have 20 Days from the date of the notice of proposed removal to submit a written response appealing the proposed removal and to request a conference. A request for a conference must be in writing and must be submitted along with a written response. Within 30 Days of FHA’s receipt of the Appraiser’s written response, or if the Appraiser has requested a conference, within 30 Days after the completion of the conference, an FHA official, designated by the Secretary, will review the appeal and send a final decision either affirming, modifying, or canceling the proposed removal from the Appraiser Roster. FHA may extend this time upon giving notice. The FHA official designated by the Secretary to review the appeal will not be someone involved in FHA’s initial removal decision, nor will it be someone who reports to a person involved in that initial decision. If the Appraiser does not submit a written response, the removal will be effective 20 Days after the date of FHA’s initial removal notice. If the Appraiser submits a written response, and the removal decision is affirmed or modified, the removal or modification will be effective on the date of FHA’s notice affirming or modifying the initial removal decision. (6) Duration Removal of eligibility from the FHA Appraiser Roster may be for a period of up to 12 months. When a removal is the result of a disciplinary action by the licensing state, removal of eligibility from the FHA Appraiser Roster will remain in effect until the appraiser’s credentials are reinstated by the issuing state.