On Saturday, November 14, 2009, FHA Commissioner Dave Stevens spoke before a group of Realtors at the NAR annual convention in San Diego, CA. During the speech, the Commissioner noted that FHA, based on input from NAR, would soon remove the requirement for a second appraisal on loans that exceed $417,000 and are secured by properties located in declining markets. Earlier this week, FHA released ML 2009-48 to make it official. This ML rescinds ML 2008-09. ML 2009-48 also eliminates the need for a second appraisal on cash-out refinances. (as described in ML 2009-08).
FHA retains a second appraisal requirement per ML 2006-14. This policy requires a second appraisal when a property is resold between 91 days and 180 days following acquisition by the seller. This is part of their property flipping prohibition policy.