HUD Addressing Appraisal Shortage Soon

HUD is preparing to address the appraiser shortage problem for areas with fewer state-certified appraisers. FHA programs now require state-certified appraisers, including the Hope for Homeowners Program (H4H). As we mentioned previously, FHA business is dramatically increasing and should be a boon to appraisers on the FHA roster. According to Inside Regulatory Strategies, some states will implement H4H immediately. States with a serious shortage of certified appraisers will be given time to gradually implement the programs. A Mortgagee Letter is expected soon and could be effective November 1, 2008. Those not certified and on the roster would be wise to do change this quickly, particularly if your state has a shortage of certified appraisers (this means YOU Michigan appraisers).

  1. John Bowen

    It amazing. We have been trying to get my son approved with the FHA for 6 months. He’s state certified, not licensed. We have not heard back from the FHA, even though multiple applicatuins have been submitted. Is this how they address a shortage, or create one?

  2. This story appears to imply that the FHA now requires all approved appraisers to be state-certified. I do not believe this is technically correct. State-licensed appraisers who are currently on the FHA approved roster are still permitted to conduct FHA appraisals. It is true, however, that appraisers who apply for FHA approval must now be state-certified. But if they are already on the roster, state-certification is not a requirement.

  3. Jerome Nagy

    According to the FHA Modernization Updates Web page found on, a Mortgagee Letter on certified v. licensed appraisers will be published on November 1. That should clarify the list of FHA-approved appraisers.

  4. Greg Brown

    Where is the shortage? Doesn’t seem like there’s any shortage in Texas.

  5. Patty

    We have no shortage in MD, just other appraisers under cutting and doing FHA work for the price of a drive-by.
    It cheapens all of us and the products will suffer in the end.

  6. I am royally upset by what is going on here.
    I am a certified residential appraiser with a business degree – and I have no work. Why? Because the banks are going to the AMCs, and the AMCs are issuing out the work only to companies that can produce high volume, fast turn-around appraisers. In short, some of the same guys that got us into this mess are still making all the bucks.
    There is NO shortage of appraisers, YET. But by requiring certification, the law removes a good chunk of the low-fee appraisers used by the AMCs.
    These are opinions but are based on conversations I’ve had with many others, and things that I know to be occurring at this time.