In response to a request for public feedback on how HUD can make its programs easier to access and use, NRMLA submitted comments this week that proposed opportunities for streamlining the process for requiring second appraisals.
Based on member feedback, the value of second appraisals tends not to deviate from the first appraisal by more than ten percent in most cases, according to NRMLA.
“Given this low rate of discrepancy, exceptions to the second appraisal requirement can be made with minimal risk to the MMIF or HECM borrowers,” says NRMLA. “Exemptions to the second appraisal requirement would also reduce costs to seniors, who typically pay for the second appraisal.”
HUD, for example, should consider waiving the requirement for a second appraisal when the appraised property value is more than ten percent greater than the highest possible maximum claim amount for HECMs in a particular year, says NRMLA.
Members can read the comment letter in its entirety by logging into NRMLAonline.org and accessing the Comment Letter section.