New FHA rules for refis & appraisals

The FHA also will impose a maximum loan value of 125 percent of the current estimated home value on refinanced loans, in line with Fannie Mae and Freddie Mac.


Why did they ever loan more than a house was worth in the first place?

Appraisals will be valid for no more than four months, a decrease from the previous six to 12 months validation period. The FHA also plans to implement appraisal changes adopted earlier this year by Fannie and Freddie. Mortgage brokers or bank employees paid on commission won’t be allowed to order appraisers.

Appraisals should never be valid for more than a couple of months (exceptions are in areas that didn't rise in value for 50 years... GO zone???) unless it's for income properties which are valued differently than residential. And they should listen to Papa Joe's thoughts (those who attended "I Survived RE 2009 know who I'm talking about or you can view the video at: http://www.thenorrisgroup.com/blog/video-blog/i-survived-real-estate-2009/) on appraisals & appraisers. The only disagreement I had with Papa Joe is that we should "Kill Bill 1728"; he's only looking at the part that affected appraisals and not the financing ramifications.

Be sure to contact your state Senators & tell them to "Kill Bill 1728". It's probably going to be tabled this year but look for them to try & sneak it through.
My two cents worth in blue.