FHA Announces Electronic Appraisal Delivery Technology

Mortgagee Letter 2020-26 (ML-2020-26) announces the availability of a new electronic appraisal (EAD) pathway utilizing the FHA Catalyst module for FHA Single Family Title II forward mortgages.  Mortgagees may begin using the EAD module in FHA Catalyst on and after September 1, 2020.

The FHA Catalyst is the FHA’s information technology initiative, and the EAD pathway allows mortgagees to electronically submit, track, and manage single family property appraisals.  This web-based platform is a centralized location where mortgagees or their designated third-party service providers can electronically deliver Single Family appraisals prior to endorsement.

The transition period to the new platform will consist of the period between the availability date of the EAD module in FHA Catalyst and the mandatory use date, which FHA will announce later.  However, according to ML 2020-26, mortgagees are encouraged to make all necessary adjustments to their systems and processes to accommodate the transition to the EAD module as early as possible.  The EAD legacy portal will remain available during the transition period.

Note the EAD module in FHA Catalyst is not available for reverse mortgage cases (HECMs).