FHA Eliminates Master Appraisal Reports

Lenders no longer are permitted to use appraisals of model homes in a subdivision or condominium project as the basis for valuing units still being built. FHA now requires an appraisal for each individual unit within a residential development in order to calculate the maximum loan amount for that unit. Lenders historically have used master appraisal reports to reduce costs and loan processing times and to ensure similar units were being consistently valued, but the FHA in 2009 said MARs only would be good for four months instead of a year, which has limited the benefit of using them. Source: American Banker


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