www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

January 29, 1996
 
MORTGAGEE LETTER 96-5
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Elimination of the "Fee Panel" and "Mortgagee Staff"
                 Appraiser Designations
 
     Now over a year since the implementation of the HUD
appraiser Roster, the vast majority of appraisals are being
provided by lender selected appraisers.  On a national average,
only 8.5 percent of all appraisals were performed by Fee Panel
appraisers.  Therefore, in our continued efforts to simplify
procedures and reduce paperwork, we are terminating the use of
the HUD Fee Panel of appraisers and the use of the designation
"Mortgagee Staff Appraiser".  This change is effective
March 1, 1996.  As of that date, all appraisers must be selected
from the HUD appraiser Roster.
 
     Any appraiser currently on the Fee Panel or employed by a
lender as a "Staff Appraiser" should assure that they are on the
Roster by the effective date in order to be eligible to be
selected by lenders.  Appraisers not on the Roster should apply
at the local HUD office.  Lenders may continue to employ
appraisers who work exclusively for them, but that arrangement is
between the lender and the appraiser.  The lender employed
appraiser must be listed on the Roster and be chosen by the
lender for each case.
 
     Lenders needing appraisals, in locations where their
appraiser employee would not normally appraise, previously would
have HUD assign fee panel appraisers to these cases.  With the
termination of the fee panel, lenders themselves must now find
and select an appraiser in such distant locations.  To assist in
this task, lenders should use the ECHO system to search the local
HUD office appraisal Roster.  Searching the Roster by "City" will
produce a list of appraisers with business addresses in that
city.  In rural areas, select the city nearest the property.  For
information and assistance on the use of this "Search" activity,
contact the customer representative at ECHO.
 
                                                                2
 
     Excluding HECM cases which may now processed by DE lenders,
only .27 percent of the all cases processed in FY95, or 1607
cases, were HUD processed.  Lenders submitting cases for HUD
processing must also provide an appraisal from an appraiser
currently on the Roster.  HUD will no longer assign an appraiser
to these cases.
 
     The CHUMS system will be modified to accommodate this
change.  If you have questions regarding this, please contact
your local HUD office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner