FHA repealed second-appraisal requirement
November 18, 2009
FHA has repealed a second-appraisal requirement for loans that exceed $417,000 in declining markets and for cash-out refinances. The second appraisal will still be used when a property is resold between 91 and 180 days following acquisition by the seller, if the resale price is 100% or more higher than the price paid by the seller when it was acquired.
A representative of FHA said that FHA hadn't seen any benefit from the two appraisal requirement and that it "really slowed down the (FHA loan) process."
Several entities, like NAR, have long opposed the two-appraisal requirement.
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