Yes, there is for both HECM and proprietary reverse mortgages.
HECMs: Effective for all HECM originations with FHA case numbers assigned on or after October 1, 2018 through September 30, 2019, HUD has implemented interim procedures in regards to appraisals. All appraisals will be submitted to FHA for automatic appraisal review. If the report doesn’t pass FHA’s review, then a second appraisal will be required. We will be required to use the lower value of the two appraisals to calculate the maximum claim amount. On a HECM for purchase, the second appraisal must always be paid for by the borrower.
Jumbo/Proprietary: Many proprietary reverse mortgages will require a second appraisal if the home value is above a certain amount.
- HomeSafe will require a second appraisal on homes valued over $2 million
- Platinum will require a second appraisal on homes valued over $2 million
- EquityEdge will require a second appraisal on homes valued over $1.5 million
- HELO will require a second appraisal on homes valued over $2 million