The memo addresses adding new appraisers to their approved appraiser list. It has a list of area's in which they decided in the past that they had a suitable number of appraisers already approved in those area's. Therefore they were not accepting adding any more appraisers to the approved appraiser list in those area's. Now they have so many they are not renewing denied or Inactive appraisers in those counties.
The memo also adds that underwriters will no longer be ordering 3rd party appraisal reviews. They will instead be leaning on an AVM for reviews.
In summary.. Flagstar will be one of the first lenders to switch over to an appraisal management company for all appraisals. They currently already mandate you use them on a few programs.
The memo seemed very clear to me. Are you somewhat new to the business? Do you have any more questions about it? You can always call your AE or Flagstar customer service for help.