Guinn smooths way for home appraisals

Friday, Sept. 17, 1999 | 10:17 a.m.

CARSON CITY -- Gov. Kenny Guinn Thursday signed an executive order to clear away a roadblock experienced by Nevadans applying for Federal Housing Administration loans.

Rules established by the Department of Housing and Urban Development require that appraisers conduct home inspections as part of the FHA loan process. But Nevada law prevents appraisers from conducting some of the newly required inspections because of limits on their licenses.

The executive order directs a grace period of up to 18 months to stop prosecution of any appraiser who conducts the home inspections as part of processing an FHA loan.

"This is an interim measure that will solve the conflict between federal and state regulators and avoid a scenario in which thousands of people have their loan process delayed," Guinn said.

The order says, "...The Division of Real Estate ... shall not pursue any disciplinary action against appraisers, not licensed as home inspectors, who fill out the federal forms required for FHA loan approval, provided such appraisers show that they are actively pursuing licensure as a home inspector."

The governor said the real estate division retains the right to investigate any complaint that an appraiser is acting irresponsibly.

"Interest rates are currently low and it would be unfair to deny people the ability to take advantage of the low rates," Guinn said. "We will continue to work with HUD and our congressional delegation to find a permanent solution to this situation."