Can the appraiser communicate with a member of the Mortgagee’s loan production staff?

An FHA Roster Appraiser must avoid conflicts of interest and the appearance of conflicts of interest.  To avoid conflicts of interest and/or the appearance of conflicts of interest, the Appraiser must not be unduly influenced by:
  • a member of a Mortgagee’s loan production staff or any other person who is compensated based upon the successful completion of a loan; or
  • anyone who reports ultimately to any officer of the Mortgagee not independent of the loan production staff and process.
The Appraiser is bound by the confidentiality provisions of the Uniform Standards of Professional Appraisal Practice (USPAP) and may not discuss the value or conclusions of the appraisal with anyone other than the Direct Endorsement (DE) underwriter or FHA staff or their representatives. The Appraiser may discuss components of the appraisal that influence its quality and value with the DE underwriter who has responsibility for underwriting the case.  The Appraiser may interact with real estate agents and others, during the normal course of business, to provide property access, information and other market data. 
 
For additional information see Handbook 4000.1 I.B.1.d.iii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04329