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HOUSING & ECONOMIC
RECOVERY ACT OF 2008 (HERA)

Is it true that FHA no longer accepts applications from state licensed appraisers and I must upgrade to state-certified general or residential to qualify for placement on the FHA Appraiser Roster?

Yes. Effective October 1, 2008, FHA began accepting applications to the roster from state-certified general or residential appraisers only. Appraisers who are not state-certified are no longer eligible to apply. <return to questions>

I am currently a licensed appraiser on the FHA appraiser roster. Why can't I be grandfathered to stay on the roster?

The Housing and Recovery Act of 2008 does not provide a grandfather provision for licensed appraisers who are currently on the roster. FHA will issue a mortgagee letter soon that addresses how the new law affects licensed appraisers who are currently on the FHA roster.

I cannot find the new law. Can you tell me about it?

Section 1404, REVISED STANDARDS FOR FHA APPRAISERS, of the Housing and Economic Recovery Act of 2008 (HERA), which was signed into law on July 30, 2008, amends Section 202(e) (12 U.S.C. 1708(e)) of the National Housing Act. HERA mandates that the FHA require all appraisers chosen or approved to conduct appraisals of properties that will be security for FHA-insured mortgages to be "certified" and meet verifiable education in the appraisal requirements established by FHA.

Currently FHA allows both licensed and certified appraisers to conduct appraisals for FHA-insured mortgages as long as they qualify under the minimum criteria issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation as authorized under the provisions of Title XI of the Financial Institutions, Reform, Recovery and Enforcement Act of 1989 (FIRREA).

On October 1, 2008, FHA stopped accepting new applications to the FHA appraiser roster from licensed appraisers. All new applicants for the FHA appraiser roster must be state-certified (certified residential or certified general) appraisers who meet the minimum certification criteria issued by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation. The October 1, 2008 rule applies only to new applicants and reinstatements. FHA will address the status of licensed appraisers who are on the roster via a mortgagee letter that will be released soon. There will be a date announced when all FHA roster appraisers must be state-certified, per the new law. <return to questions>

Can you tell me when more information will be available?

FHA will issue a mortgagee letter soon addressing the status of licensed appraisers on the FHA roster.

ELIGIBILITY REQUIREMENTS

How do I qualify to be listed on the FHA appraiser roster?

As a new applicant who has never been on the FHA roster before, you must:

• Be state-certified with credentials based on the minimum certification criteria by the Appraiser Qualifications Board (AQB) of the Appraisal Foundation for each state in which you desire to perform FHA appraisals
• Not be listed on any federal sanctions list, such as GSA's Excluded Parties List System (EPLS), HUD's Limited Denial of Participation (LDP) List, or HUD's Credit Alert Interactive System (CAIVRS) and
• Apply online and be able to attach a PDF file of your application and certification. <return to questions>

Real Estate Appraiser Classification and Regulation Act