The Federal Housing Administration (FHA) is moving its delivery of mortgage origination appraisals online. The Electronic Appraisal Delivery (EAD) portal for FHA insured single family will be used to provide information necessary for mortgagees to prepare for delivering both forward and reverse origination appraisals, HUD announced through a mortgage letter. Mortgage lenders will be required to use the web-based platform for mortgagee submissions of FHA appraisal data and reports for case numbers assigned on and after June 27, 2016.
According to HUD, the EAD portal will make it easier to do business with FHA by offering process and technology efficiencies that “streamline appraisal data transmission, promote quality up-front appraisal data, and reduce post-endorsement appraisal data corrections,” HUD said in a statement. The EAD portal will allow transmissions to FHA of only those appraisals that comply with FHA’s Single Family Housing Appraisal Report and Data Delivery Guide.
“When submitting an appraisal, the portal provides a confirmation of a successful submission, or information regarding required corrections that may need to be made before resubmitting and transmitting to FHA,” HUD said.
Mortgagees should note that appraisals submitted through the EAD portal remain subject to a review for compliance with FHA appraisal requirements and mortgagees remain responsible for proper underwriting of the appraisal and for ensuring the property meets FHA’s minimum property requirements and standards for serving as security for the FHA-insured mortgage, HUD noted.
In addition, the appraiser remains accountable for appraisal quality, credibility, and compliance with FHA appraisal requirements, HUD said. FHA will incorporate the EAD portal into the Single Family Housing Policy Handbook.
“Web-based, on-demand training will be available,” HUD said, adding that mortgagees are “strongly encouraged to ensure their authorized users and/or designated third-party service providers complete the training before accessing the EAD portal.”