How to Become an Appraiser on the FHA Roster: A Comprehensive Guide

The Federal Housing Administration (FHA) roster is the official list of appraisers approved to conduct appraisals on properties for FHA-insured loans. Being on the FHA roster allows appraisers to work on FHA mortgages, reverse mortgages, and REO properties. It’s an important designation for residential appraisers looking to expand their businesses.

This comprehensive guide covers everything you need to know about getting on and staying on the FHA appraiser roster.

FHA Appraiser Roster Eligibility Requirements

To be eligible for the FHA roster, appraisers must meet the following criteria:

• State Certification: You must be a state-certified residential real estate appraiser. The FHA does not allow state-licensed appraisers.
• Background Checks: You cannot be listed on the General Services Administration’s Excluded Parties List, the System for Award Management, HUD’s Limited Denial of Participation list, or the Credit Alert Verification Reporting System.
• Good Standing: Your appraiser credentials must be in good standing in all states where you hold a certification. You cannot have any active license suspensions or revocations.

How to Apply for the FHA Appraiser Roster

If you meet the FHA eligibility criteria, you can submit an online application through the FHA Connection portal. Follow these steps:

1. Create an FHA Connection account if you don’t already have one.
2. From the homepage, click “Update Business Profile” and select “Apply for Appraiser Roster.”
3. Complete all sections of the online application. Make sure your state appraiser’s license number and expiration date are accurate.
4. Read and agree to the terms and conditions, which include following FHA appraisal guidelines and standards.
5. Submit the application and application fee. The fee is $200 for a two-year roster membership.

It can take up to 8 weeks for the FHA to review and process your application. You will be notified by email once a decision has been made. If approved, you will be placed on the FHA Appraiser Roster.

READ ALSO: Understanding Home Appraisals: A Comprehensive Guide

Maintaining Your FHA Roster Status

As an FHA roster appraiser, you must actively maintain your roster status. This involves:

• Renewing Your State License: You must renew your state certification before it expires to avoid being removed from the FHA roster. Renew at least 45 days in advance to allow for processing time.
• Paying Renewal Fees: A $200 renewal fee must be paid every two years to maintain your roster status. Fee payments will be requested as your renewal date approaches.
• Meeting Continuing Education Requirements: Complete all state and federal continuing education requirements to keep your license current. FHA roster appraisers must follow USPAP’s Continuing Education (CE) requirements.
• Maintaining Competency: Stay up to date on the latest FHA appraisal standards, guidelines, regulations, and property requirements through ongoing education and training. Be competent to perform all FHA appraisal assignments.
• Completing Regular Reapprovals: The FHA roster status must be periodically reapproved. The first reapproval is done after the first year. Subsequent reapprovals are required every two years.

Why Appraisers Are Removed from the FHA Roster

There are several reasons an appraiser may be removed from the active FHA roster:

• Expired License: If your state certification expires, you are automatically removed from the FHA roster.
• Disciplinary Actions: Any license suspension, revocation, or limitation of your appraisal practice privileges in any state will result in FHA roster removal.
• Performance Issues: Serious deficiencies or non-compliance with FHA appraisal standards can lead to removal. Common performance issues include unsupported valuations, unacceptable appraisal reports, and violations of FHA guidelines.
• Non-Renewal: Failure to pay the biennial renewal fee will result in removal after the membership expiration date.

Reinstatement for Former FHA Roster Appraisers

If you were previously on the FHA roster but had your status removed, you must apply for reinstatement instead of applying as a new candidate. Here is the reinstatement process:

1. Resolve the issue that led to your removal, such as license renewal or disciplinary action.
2. Submit an online reinstatement request through the FHA Connection portal. As part of the request, explain the circumstances of your removal and provide proof you have resolved the underlying issue.
3. The FHA will review your reinstatement request and make a determination. As long as you have satisfactorily resolved the removal issue, your reinstatement will likely be approved.
4. Once reinstated, you must go through the standard two-year reapproval process for roster appraisers.

READ ALSO: How to Prepare for a Home Appraisal When Refinancing Your Mortgage

Keeping Up with FHA Appraisal Rules and Guidelines

FHA roster appraisers are expected to have expert-level knowledge of FHA appraisal policies, guidelines, and standards. Ongoing education is essential for maintaining this competency.

Some key resources for keeping up with FHA appraisal requirements are:

• SF Handbook 4000.1: This handbook, effective since 2019, is the core guidance on FHA appraisal standards and policies. Download the PDF version to study in detail.
• Mortgagee Letters: Important updates and new policies are announced through FHA Mortgagee Letters. Review newsletters when they are published.
• HUD Regulations: Changes to regulations like 24 CFR 200.202 on Appraiser Roster Eligibility are published in the Federal Register.
• FAQs: Check the FHA’s Appraiser FAQs page for clarification on appraisal issues.
• Your State Appraiser Board: Get news and updates relevant to your state certification status.

Staying current on federal, state, and local requirements is essential for FHA appraisers. Sign up for newsletters, take regular FHA-focused training, and set a Google Alert for “FHA appraisal” to stay in the know.

FHA Appraisal Courses

Taking targeted training on FHA appraisal is recommended both before applying for roster eligibility and on an ongoing basis.

Many appraiser continuing education providers offer courses specifically focused on FHA appraisal requirements. Here are some top course picks:

• FHA Appraising: Appraisal Requirements for Working with FHA Mortgages (McKissock – 7 Hours)
• Appraising FHA and the EZ Close Mortgage (Appraisal Institute – 7 Hours)
• FHA Appraising Residential Properties (American Society of Appraisers, 7 Hours)
• FHA Appraising (American Society of Appraisers, 8 Hours)

Look for courses that review key policies from the SF Handbook 4000.1 and provide specific examples for appraising properties to FHA guidelines.

Tips

• When applying, double check that you meet all the eligibility requirements. Having an application denied will delay the process.
• Thoroughly study the SF Handbook 4000.1 before submitting your first FHA appraisal report. Understanding the guidelines upfront prevents mistakes.
• Set calendar reminders for your roster renewal date and state license renewal date. Plan ahead to avoid last-minute scrambles.
• Expand your appraiser’s E&O insurance coverage to include working on government-backed loans. Some providers require endorsements.
• Maintain detailed records of your completed FHA continuing education courses for easy reference during renewals.
• Set up a dedicated email folder for FHA newsletters, updates, and communications to stay organized.
• Join appraiser discussion forums and networking groups to exchange insights with other FHA roster appraisers.
• Attend live training events on FHA appraising for the opportunity to interact with instructors and peers.
• Consider getting the Residential Endorsement (FHA DE) specialty designation from the Appraisal Institute to showcase advanced competency.

To Recap

Getting listed on the FHA Appraiser Roster opens up new opportunities to work on federally-insured mortgages. But it also comes with strict eligibility standards, ongoing education expectations, and renewal requirements.

This guide covers everything residential appraisers need to know to get approved for the roster, avoid removal, provide compliant FHA appraisals, and continuously update their knowledge.

Following these best practices for applying, renewing, developing competency, and reinstating lost FHA status can help position appraisers for success as FHA roster members.

The rewards of being a go-to FHA appraiser are significant. But appraisers must be fully prepared to take on the responsibilities and meet high performance expectations. Use this comprehensive resource to establish and grow a robust FHA appraisal practice.

In another related article, The Home Appraisal Process Explained for Buyers and Sellers