Can appraisals be ordered by a Mortgagee’s loan production staff?

The Mortgagee may not allow the appraiser to be selected, retained, managed, or compensated by a mortgage broker or any member of a Mortgagee’s staff who is compensated on a commission basis tied to the successful completion of a Mortgage or who is not independent of the Mortgagee’s mortgage production staff or processes. 

For additional information see Handbook 4000.1 II.A.1.a.iii(B)(6)(d) at

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-04341