The Nadlan Triple Check for Perfect Reports

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HUD Cracking Down on Appraisal Reports

We’ve learned that quite a few appraisers are receiving “Notice of Deficiency” letters from HUD/FHA, citing problems with appraisal reports.


Nadlan has seen some of the letters HUD has sent to appraisers: some letters state that a “Notice of Appraisal Deficiencies” will go into appraiser records on file with HUD, along with a warning that “repeated deficiencies may lead to administrative sanctions.”


If there are deficiencies with multiple appraisal reports, appraisers receive letters from HUD requiring them to complete a minimum seven-hour continuing education course to “improve performance in order to remain on the FHA Appraiser Roster.”


Appraisers are required to complete the course within 60 days and provide written evidence of having successfully taken the course. Failure to do so could bring on additional administrative sanctions, according to the HUD letters Nadlan has seen.


We hear that an increasing number of appraisers are getting these letters from HUD, so appraisers need to be on their toes.  Clearly, HUD examiners are going through appraisal reports very carefully and making sure appraisers adhere to regulations to the letter.


What are some of the deficiencies cited by HUD?





At Nadlan, appraisal reports undergo our “triple check” process to ensure accuracy. Though it might seem to be a minor annoyance to appraisers to have their reports questioned, we only do so to protect both appraisers and lenders.