Brokers Can Not Order FHA Appraisals

DE lenders need to be very careful when accepting appraisal from other companies on FHA loans. FHA ML 09-28 prohibits a mortgage broker from ordering an FHA appraisal. FHA defines a broker to be a loan correspondent/‘mini eagle’ company. The definition of a broker for ML 09_28 is not solely or directly related to which entity is funding the loan, as for other regulations. The Appraisal FAQ provided by FHA states a broker can order an appraisal through a ‘blind’ company. However, this does NOT change that the ‘assignment of work’, and payment of the appraisal must be through a full eagle company. This FAQ is meant to illustrate that a broker can use a portal set up by a sponsor to ‘blind’ order an appraisal. The appraisal report must still show the full eagle lender name as the client.