On March 26, 2015 HUD issued Mortgagee Letter 2015-08 announcing FHA’s implementation of the Electronic Appraisal Delivery (EAD) portal and to provide details that mortgagees will need to prepare for delivering origination appraisals through the EAD portal. The EAD portal is a web-based platform that mortgagees and their authorized users or third-party service providers will use to deliver single-family appraisal reports.
For all case numbers assigned on or after June 27, 2016, delivery of appraisals via the EAD portal will be required. The FHA will offer registration to the EAD portal in phases so that mortgagees can choose their implementation schedule based on system and operational considerations. The registration phases will begin after June 15, 2015.
Mortgagees will appoint an EAD Lender Administrator who will be responsible for issuing and maintaining access credentials for their authorized users and third-party service providers. User Guides are available on the EAD Resource web page and can be accessed by clicking here.
The Mortgagee Letter goes on to state that “Appraisals submitted through the EAD portal remain subject to 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. The appraiser remains accountable for appraisal quality and credibility and compliance with FHA appraisal requirements.”
Appraisers will continue to follow HUD/FHA policy when completing FHA appraisals. The FHA has developed an Appraisal Report and Data Delivery Guide that contains instructions and data delivery formats and requirements. You can access the guide by clicking here.
The FHA will be offering web-based, on-demand training and strongly encourages its mortgagees, their users and third-party service providers to participate in the training before using the EAD portal. As with the UCDP, VMG will have the ability to upload orders to the EAD portal on our client’s behalf. VMG will stay abreast of the EAD portal implementation process and provide updates to our partners as they are made available.
As a national commercial and residential appraisal management company, Valuation Management Group (VMG) is able to assist lenders with all of their appraisal management services. VMG handles the entire appraisal process for commercial and residential appraisals, from engaging the appraiser to completing robust commercial appraisal reviews and residential appraisal reviews. The Valuation Management Group appraisal review ensures an appraisal conforms to appraisal regulations and is acceptable for the client. VMG is proud to be able to assist financial institutions in maintaining appraisal compliance and appraiser independence.
Valuation Management Group is a full service national appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.