At least according to trade group representing appraisers:

http://cache.inman.com/files/stories/Appraisers_Donovan_July_1_2009.pdf

You might also be interested to know that HUD is now requiring that FHA appraisers use Fannie and Freddie’s reporting standards in declining markets, which require that two of three recent sales comps be within the last 90 days.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-09ml.doc

https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/appraisalfaqs.pdf

Yer hedline is a little puzzling in the way it implies that MBA is intentionally hiding something.

They’ve testified about some of the “implementation challenges” HVCC has had posed — for FHA lenders, too.

http://www.house.gov/apps/list/hearing/financialsvcs_dem/kittle.pdf

As the MBA testified in June, another factor in the recent growth in FHA market share is the increase in their loan limits to as much as $729,750 in high cost markets — an issue not raised in the MBA press release you cite.

I don’t know if we should ever expect a press release to tell us the “full story,” but it seems like you took a needless swipe at the MBA without adding to our understanding of the issue at hand.

Avoiding the HVCC debacle is best for the client assuming that after investing time and effort finding a house, paying application fees and inspection fees they actually want to get a loan and close. Our experience with the HVCC appraisers has cost clients money, time and heartache which would have been avoided by a LO “pushing” a loan that could actually close on time without costly appeals on deaf ears. An HVCC “appraiser” showed up and missed 800 sqft in his measurements. Turns out this “appraiser” was not licensed and was a different person than the “appraiser” that signed the report. Signing appraiser never set foot in the house. Cost to seller: $40,000 in value and 60 days of extra carry costs. How is this adding integrity to the process? At lest with govt loans, the appraiser who shows up is the one who signs off, and if there are issues, they can be discussed.

I find that FHA is a popular choice amongst homebuyers because of the lower DP requirement, low MI, and more lenient qualification standards. Most of my first time homebuyers utilize the program b/c of these things, and even some of my second homebuyers have hopped on the FHA train as well. The problem I run into with FHA, though, is the over-supply of foreclosures. Many of these foreclosurs won’t qualify for FHA and that’s an issue I have dealt with frequently in the past few months. These situations are where being able to qualify for conventional would really come in handy.

I am lucky to know that my preferred lender gives my buyers the available options and lets them choose which program works best for them. Hopefully many agents can say the same thing!!