Washington Report

Advocacy Updates from Washington D.C.

Changes to Rural Housing Service Appraisal Requests

On May 18, 2016, the US Department of Agriculture (USDA) Rural Housing Service published a final rule concerning Single Family Guaranteed Loan Program appraisal requests. The final rule authorizes servicers to directly obtain liquidation value appraisals after the expiration of the real estate owned (REO) marketing period, rather than USDA ordering the appraisal. The cost to the servicer of obtaining the liquidation value appraisal will be recognized as an eligible cost for reimbursement when calculating a loss payment.

The new rule will take effect on June 17, 2016.

Final Rule

Advertisement