An essential part of every reverse mortgage loan is the home appraisal, which is used to determine the value of the home on which the loan approval and loan amount are largely based.
Due to the social distancing measures now in place to limit the spread of COVID-19 and to protect the health and safety of both homeowners and appraisers, the Federal Housing Administration (FHA) — the insurer for all Home Equity Conversion Mortgages — has issued a series of new appraisal protocols.1
If an appraisal for your home has been ordered as part of your reverse mortgage application, your appraiser will proceed using one of two options. These new guidelines are currently in effect through May 17, 2020.
In response to the current COVID 19 pandemic, AAG in coordination with the FHA is trying to do all it can to streamline the appraisal process in order to protect the health and safety of borrowers and appraisers while maintaining the integrity of the reverse mortgage process from application through funding.
If you have any questions about the appraisal process, please reach out to us.
Sources
1https://reversemortgagedaily.com/2020/03/29/fha-relaxes-appraisal-documentation-requirements-during-coronavirus-crisis/
