Mortgagees must obtain appraisal field reviews on at least 10 percent of FHA-insured Mortgages selected for origination and underwriting Quality Control (QC) review.
The Mortgagee’s appraisal field review sample must include the following, even if inclusion of these Mortgages results in a field review sample that exceeds 10 percent of FHA-insured Mortgages selected for origination and underwriting QC review:
The Mortgagee may include random sample selections in its appraisal field review sample if necessary, to meet the overall 10 percent requirement.
For additional information, see:
The Mortgagee’s appraisal field review sample must include the following, even if inclusion of these Mortgages results in a field review sample that exceeds 10 percent of FHA-insured Mortgages selected for origination and underwriting QC review:
- At least 10 percent of Early Payment Defaults (EPDs) underwritten by the Mortgagee as defined in Handbook 4000.1 V.A.3.a.iv(B), which must be randomly selected from the overall EPD population;
- All Mortgages selected by the Mortgagee for QC review based on a Property or appraisal-related discretionary sample as described in Handbook 4000.1 V.A.3.a.iv(C);
- All Mortgages for which the Mortgagee has received a Property complaint from the Borrower(s); and
- All Mortgages with unaddressed red flags, discrepancies, inconsistencies, or valuation issues found by the Mortgagee through its QC review of the Property documentation and appraisal report.
The Mortgagee may include random sample selections in its appraisal field review sample if necessary, to meet the overall 10 percent requirement.
For additional information, see:
- Handbook 4000.1 V.A.3.a.iv(B) and (C) and V.A.3.c.ii(C) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh