AppraiserLoft, a national appraisal management company (AMC), says it achieved early compliance with the Federal Housing Administration appraisal independence and engagement regulations that took effect Jan. 1. The AMC's practices were already in full compliance when the U.S. Department of Housing and Urban Development released them in October.
Among FHA's new rules and regulations is the requirement that appraisers receive reasonable and customary compensation. Mirroring the Home Valuation Code of Conduct (HVCC) requirement that appraisers cannot be affiliated with lending agencies, FHA's version has also adopted higher standards in ordering appraisals, a measure AppraiserLoft says it strongly supports.
The company's practices have also long complied with the new FHA requirement that appraisers have familiarity with the geographic location of the properties they appraise. AppraiserLoft's nationwide network includes 15,000 appraisers.
"Geographic location has always been, and will always be, one of the main criteria for the selection of independent appraisers in AppraiserLoft's transactions," says Shane Copeland, senior vice president and director of national sales. "We strongly support and will continue our previous practice of hiring local appraisers to provide property valuations that lenders can trust."