New HUD "Appraiser Independence" Requirements (ML 2009-28 & 2009-51) Become Effective Feb. 15th

 ML 2009-28: Enactment of ML 2009-28, Appraiser Independence, delayed until February 15, 2010.

ML 2009-28 has two parts:

a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and

b) appraiser selection in FHA Connection. The effective date for both sections of this guidance will now take effect for all case numbers assigned on or after February 15, 2010. This extension will provide FHA and lenders additional time to adjust systems to accommodate the changes.

Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter. However, lenders should be aware that the requirement for inputting the appraiser ID and the appraisal assignment date in the FHA Connection case number assignment screen will be removed. Instead, lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Update Screen once the completed appraisal is received by the lender and prior to closing the loan.

ML 2009-51: Adoption of the Appraisal Update and/or Completion Report (form 1004D), states an effective date of January 1, 2010. The effective date is being extended and will now apply to all case numbers assigned on or after February 15, 2010. This extension will provide additional time needed by FHA and lenders to adjust their systems to accommodate use of the form.

Source: HUD

• FAQs ML 09-51 Adopt Form
• FAQs ML 09-29 
• FAQs ML 09-28 
• 09-51 Adopt Form
• Summary of FHA Mortgagee Letters