FHA recently released FHA INFO #18-47, reminding mortgagees that the protocols that had been in place on an interim basis for the HECM second appraisal requirements pursuant to FHA Mortgagee Letter 2018-06 (ML 18-06) became fully automated on November 30, 2018.
On September 28, 2018, FHA issued ML 18-06, requiring mortgagees that originate HECM loans to provide a second property appraisal if FHA determines that inflated property values may exist. Under the new policy, FHA will perform a risk assessment of appraisals submitted for new HECM originations. A second appraisal may be required if FHA determines that additional support for the collateral value is required before a loan is approved for insurance.
ML 18-06 provides the fully-automated protocols that mortgagees must follow in connection with the new HECM appraisal submission and assessment process.
A copy of ML 18-06 can be found here.
A copy of FHA INFO #18-47 can be found here.