The Federal Housing Administration (FHA) announced late Friday afternoon that it is extending its relaxed appraisal requirements for most FHA-insured loans originated during the COVID-19 coronavirus national emergency. The extension, announced in Mortgagee Letter 2020-28 is effective for all appraisals submitted through October 31.

Previously, the allowance for desktop and curbside appraisals was in place through May 17, per ML 2020-05 published in late March, and was most recently extended through August 31 with ML 2020-20.

The extension applies to the allowance of desktop-only and exterior-only appraisals as well as re-verification of employment guidance specified by FHA in the original March ML, and applies to all FHA Single Family Title II forward and reverse mortgage programs.

This extension will further allow for those seeking and conducting property appraisals to practice social distancing while allowing a necessary step in the mortgage process to proceed.

“This third extension will allow industry partners additional opportunity to utilize flexible guidance related to reverification of employment and appraisal protocol for FHA Single Family programs affected by COVID-19,” the ML reads.

The extension is effective immediately as of the ML’s publication, coming just days before the most recent extension was set to expire and arriving right after FHA re-extended its relief related to a moratorium on foreclosures and evictions through the end of 2020.

Read Mortgagee Letter 2020-28 at HUD.