For what reasons may an appraiser be removed from the FHA Appraiser Roster?

FHA may remove an appraiser from the FHA Appraiser Roster for failure to comply with the requirements in Handbook 4000.1.   Causes for removal include, but are not limited to:
  • significant appraisal deficiencies, including non-compliance with Civil Rights requirements regarding appraisals
  • losing standing as a state-certified appraiser due to disciplinary action in any state in which the appraiser is certified 
  • losing standing as a state-certified appraiser due to expiration of a state certification (FHA allows a 30-day grace period)
  • prosecution for committing, attempting to commit, or conspiring to commit fraud, misrepresentation, or any other offense that may reflect on the appraiser’s character or integrity
  • failure to perform appraisal functions in accordance with instructions and standards issued by HUD
  • failure to comply with any agreement made between the appraiser and HUD or with any certification made by the appraiser
  • issuance of a final debarment, suspension, or limited denial of participation
  • failure to maintain eligibility requirements for placement on the Appraiser Roster; or 
  • failure to comply with HUD-imposed education requirements 
 
An appraiser that is debarred, suspended, subject to a limited denial of participation or has lost standing as a state-certified appraiser due to disciplinary action or expiration of a state certification, will be automatically removed from the FHA Appraiser Roster and notified of the removal.
 
In all other cases, the appraiser will be given written notice of the proposed removal, and the notice will include the reasons for the proposed removal and the duration of the proposed removal. Removal from the FHA Appraiser Roster may be for a period of up to 12 months. If removal is the result of expiration or a disciplinary action by the licensing state, removal from the FHA Appraiser Roster will remain in effect until the appraisal credentials are reinstated by the issuing state. 
 
An appraiser can determine their status on the FHA Appraiser Roster at https://entp.hud.gov/idapp/html/apprlook.cfm
 
For more information visit the FHA Roster Appraisers web page at https://www.hud.gov/program_offices/housing/sfh/appr
 
and Handbook 4000.1 I.B.1 & V.E.5.e.i.(C) 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-04420