FHA lender and "subject to roof inspection" appraisal For the second time in a month I have completed an FHA appraisal subject to a roof inspection and the client has asked me to remove subject to because the lender will not lend on anything other than "as is". The client then proceeds to insist that I accept the inspection and clear the condition as opposed to the bank clearing the condition. Anyone else having this issue? According to Mortgage Letter 2005-ML-48 put out by FHA "FHA Roster Appraisers are reminded to report all readliy observable property deficiencies, as well as any adverse conditions discovered performing the research involved in completing the appraisal, within the appraisal reporting form. Lenders should use professional judgment and rely upon prudent underwriting practices in determining when a property condition poses a threat to the safety of an occupant and/or jeopardizes the soundness and structural integrity of the property, such that additional inspections and/or repairs are necessary." In addition, Appendix D of the FHA handbook 4150.2, page d-24, states that the appraiser appraiser should -Note any evidence of deterioration of roofing materials (missing tiles, shingles, flashing). Deterioroated roofing materials include those that are worn, cupped, or curled. -If the roof is otherwise unobservable, look for telltale signs of problems on the interior, such as damage or water stains to the ceiling of a room or closet. -The appraiser must not in the appraisal that he/she could not adequately observe the entire roof area (state which area(s) were unobservable). Based on the information reported by the appraiser, the underwriter will determine whether or not a roofing inspection is recquired. So, it seems by this that roofing conditions are to be reported and that it is up to the underwriter to call for an inspection. We are responsible for reporting the condition and that is all. No more "subject to inspection" appraisals. Intersting.