The article discusses challenges faced by reverse mortgage professionals, particularly focusing on the requirement for a second appraisal imposed by the FHA in 2018. This rule was enacted to protect the Mutual Mortgage Insurance Fund but has since garnered mixed reactions from industry experts. Many consider it a major hurdle in closing loans. Issues surrounding appraisal bias are also raised, with concerns that appraisers may treat properties differently due to the nature of reverse mortgage transactions, impacting both clients and the appraisal process.
The panel quickly jumped on issues they've face with appraisals as a key impediment in the closing process.
Opinions among reverse mortgage professionals about the second appraisal requirement has varied over the years.
Ernie Severson suggested that appraisers may look at a property differently if they're aware that the appraisal has been requested for a reverse mortgage transaction.
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