The Federal Housing Administration (FHA) will start requiring second independent appraisals for Home Equity Conversion Mortgage (HECM) originations, commonly known as reverse mortgages, in cases where the agency suspects inflated property values.
The new requirement will apply to case numbers assigned on or after Oct. 1 through Sept. 30, 2019 but did not include details on what might trigger FHA to require a second appraisal.
Read on to find out more details about the new requirement.