FHA Cites Appraisal Concerns Because of 'Technological Shortcomings'

by: NCAI

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Oct

By Ben Lane

The world’s largest mortgage insurer can only check for mortgage defects on a “small” number of mortgages due to technological shortcomings and that’s leading to a potential rise in appraisal-related issues.

The Federal Housing Administration has already identified issues in appraisals on reverse mortgages and is taking steps to address those issues, but FHA Commissioner Brian Montgomery told the crowd at the Mortgage Bankers Association 2018 Annual Conference in Washington, D.C., on Monday that the FHA is seeing some things in forward appraisals that give him “pause.”

The FHA is the “largest mortgage insurer in the world,” Montgomery said, but the agency can’t review all of the mortgages it insures because some of its “key” systems are more than 25 years old.