Mortgagees on government-insured residential loans will have to start using a new electronic portal to deliver appraisal reports next year.
The Federal Housing Administration is implementing the Electronic Appraisal Delivery portal for appraisals on all FHA-insured single-family loans.
As a result, mortgagees and designated third-party service providers will need to
obtain access credentials and validation that they are ready for the technology.
The changes were described in Mortgagee Letter 2015-08 from the Department of Housing and Urban Development.
Reports that are submitted electronically will need to comply the the agency’s Appraisal Report and Data Delivery Guide. In addition, they will need to be in the Mortgage Information Standards Maintenance Organization 2.6 with embedded PDF format,
Up to 10 appraisal reports can be uploaded through an interactive user interface. Mortgagees can also implement a direct system-to-system integration with the portal for batch uploads.
Mortgagees will need to appoint an “EAD Lender Administrator” through the FHA Connection
to issue and maintain credentials for authorized users to access the portal. Administrators can also authorize service providers and designate additional administrators.
Once the report has been successfully uploaded, mortgagees will receive a confirmation. Failed deliveries will be followed by a notice that the appraisal requires correction and resubmission.
But successful submission doesn’t mean that appraisals comply with FHA’s appraisal requirements.
Appraisals will need to be delivered through the portal on new mortgages with case numbers assigned on or after June 27, 2016.
During a transitional period until then, FHA mortgagees will have the option of using the portal for appraisal delivery or
continuing to deliver the reports as required by the FHA Single Family Housing Policy Handbook.
Access will be offered by FHA in phases that will be announced no later than June 15 of this year.
“Each mortgagee will have the option to select a registration phase, and are encouraged to select the earliest phase in which they believe their systems and processes will be ready to accommodate the EAD process,” the mortgagee letter stated. “Mortgagees will receive access credentials to the EAD portal at the beginning of the registration phase that the mortgagee selects.”
While FHA will provide technical assistance, mortgagees are responsible for meeting the deadline for implementation.
An EAD resource page has been set up and can be accessed at www.hud.gov.
