Earlier this week, the Appraisal Institute told the U.S. Department of Housing and Urban Development (HUD) that it supports the current requirement for a second appraisal on certain federally insured reverse mortgage transactions.

The comments came in response to HUD’s recent request for information (RFI) that sought public feedback on potential improvements to the Home Equity Conversion Mortgage (HECM) and HECM Mortgage-Backed Securities (HMBS) programs.

In a letter dated Dec. 1, Appraisal Institute officials Scott DiBiasio and Brian Rodgers called the second appraisal rule a “critical safeguard” for originating HECM loans that involve potentially overinflated home values.

“The second appraisal details ⇒

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