HUD ML-2013-44: REO Properties; Appraisal Ordering; Comparables Used
On December 6, the U.S. Department of Housing and Urban Development (HUD) released Mortgagee Letter 2013-44, subtitled HUD Single Family Real Estate Owned (REO) Properties: Updates on Ordering New Appraisals and Clarification on Comparables Used for Appraisals.
MORTGAGEE LETTER 2013-44
To: All Approved Mortgagees, All FHA Roster Appraisers
Subject: HUD Single Family Real Estate Owned (REO) Properties: Updates on
Ordering New Appraisals and Clarification on Comparables Used for Appraisals
Purpose: This Mortgagee Letter includes changes to HUD’s policies on:
- The use of an FHA-insured mortgage in the purchase of HUD REO
- The use of distressed properties in determining the market value of REO
Effective Date: Mortgagees must implement these policies no later than 60 days from
the publication date of this Mortgagee Letter.
Affected Policy: The policies set forth in this Mortgagee Letter modify or supersede,
where there is conflict:
- Mortgagee Letter 2010-08, HUD REO Appraisal Validity Period and
Second Appraisals, and
- Section A-2 (Sales Comparison Approach) of Mortgagee Letter 2006-09,
Revisions to Appendices A and C to Handbook 4150.2 Change 1, Valuation
Analysis for Home Mortgage Insurance for Single Family One- to Four-
Please click here to view the letter in its entirety.
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