One of the interesting ideas flown at the FHA Update Seminar I attended in Cincinnati on September 6 was the one where FHA is planning to do away with testing appraisers on FHA requirements before they are added to the FHA Roster. While that may add a LOT of appraisers to the roster, it may ultimately create some additional risk to FHA when appraisals are submitted which do not properly identify problem areas in homes.
At one time, an FHA buyer could fairly well assume that the house he was buying had no significant defects, because the FHA appraiser was to submit the value opinion subject to the Valuation Conditions addendum. The Valuation Conditions addendum no longer is part of an FHA appraisal. FHA relies on the appraiser to use his own judgement in calling for repairs. That is not a bad idea, but if the appraiser has not been tested to find out if he actually understands the criteria, it may not be a very good idea, either.
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