COVID-19: Are Mortgagees required to conduct targeted field reviews of appraisals as part of their Quality Control (QC) reviews during the COVID-19 pandemic?

Mortgagees may be unable to conduct targeted field reviews of appraisals during the COVID-19 pandemic. Therefore, FHA is providing Mortgagees with flexibility by temporarily waiving part of its requirements found in Handbook 4000.1, Section V.A.3.c.ii(C)(1)(b).
 
FHA issued a temporary waiver on December 4, 2020, advising Mortgagees that they are permitted to use third-party tools as an alternative to field reviews of appraisals. Mortgagees must continue to meet all other QC requirements in Handbook 4000.1, Section V.A.3.c.ii(C). For example, Mortgagees must conduct desk reviews of appraisals following the standards described in Section V.A.3.c.ii(C)(1)(a).
 
This temporary waiver applies to QC reviews currently in process and for cases selected as part of a Mortgageeā€™s QC selections until further notice.
 
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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-05532