FHA Adopts HVCC Guidelines - Coester Appraisal Group responds.

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 18, 2009 -- The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve their exposure to risk. The changes, effective January 1, include:

* Modification of Procedures for Streamline Refinance Transactions
* Adoption of Home Valuation Code of Conduct Guidelines (some not all)
* Updated Appraisal Validity Period
* New Appraisal Portability Regs
* New Requirement of Lenders to Submit of Audited Financial Statements for Review

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FHA Adopts HVCC Guidelines - Coester Appraisal Group responds.

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* Adjustments to the Approval Process for Participation in FHA Loan Origination
* Increased Net-Worth Requirements for Lenders

Grabbing the attention of mortgage professionals was FHA's decision to adopt language from HVCC appraisal guidelines. The HVCC, which has been the subject of heated debate within the industry, was implemented by Fannie Mae and Freddie Mac on May 1, 2009. At that time the FHA decided not to adhere to the policy. This undoubtedly increased demand for FHA loan products as originators quickly learned of the multitude of problems associated with HVCC. The new requirements will prohibit any commissioned based lender staff member from ordering an FHA appraisal.

This doesn't come as much of a surprise as the FHA guarantee fund is rapidly depleting and with the quality of the appraisals in question the need for accurate appraisals has never been more prevalent.

Coester Appraisal Group a national appraisal management company was pleased with the announcement and is seen as something that has been a long time coming. Coester Appraisal Group's CEO Brian Coester commented "by FHA adopting the HVCC it shows were the government and US as a whole stands on the importance of accurate appraisals. Restoring the integrity of the US real estate market is the number one goal for our firm and FHA and the GSE's seem to be on board with that goal".

Coester Appraisal Group a Washington D.C. based national appraisal firms specializes in assisting lenders, banks, whole sale lender, credit unions and various financial instutions with valuation services. There sister company Jaymes Financial is a financial advisory firm specializing in assisting lending institutions in core business advisory.

More information can be found online at http://www.coesterappraisals.com

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