FHA: Some Buyers Can Request Second Appraisal
New HUD process will allow FHA borrowers to request a second appraisal if they suspect their first appraisal was skewed due to an appraiser’s racial bias.
WASHINGTON, Fla. – Housing and Urban Development (HUD) Secretary Marcia L. Fudge announced that HUD, through the Federal Housing Administration (FHA), is creating a process that people seeking FHA financing can use to request a review of their property appraisal if they believe the results may have been skewed by racial bias.
A homeowner refinancing their home with an FHA-insured mortgage, for example, will be able to take steps to ensure that their appraisal is fair.
Fudge’s FHA policy change is, according to HUD, the first step to solidify processes lenders must follow when a borrower requests a Reconsideration of Value (ROV) review if their concern centers on unlawful discrimination. It gives borrowers a new option if they suspect bias in the appraisal process.
“This announcement is an important step forward in rooting out appraisal bias in this country,” says Fudge.
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