Here Is Why FHA Fees Go Up $150

[Michigan CG]

BELOW IS A STIP AN APPRAISER GOT:






FHA might not be requiring it but some clients are going to require it. They already are.

THE ABOVE IS A STIP FROM AN AMC.

 

[KenAZ]

View attachment 26947

FHA might not be requiring it but some clients are going to require it. They already are.

Exactly why I am refusing to do FHA, no matter what the fee.

 

[glenn walker]

Nothing has really changed. I have been doing FHA for over 25 years and inspecting the crawl space and attics has been in the old 4150.00 for ever. The problem appears to be most appraisers never read the old 4150 or did few FHA appraisals and now believe these are new issues. It's easy open the crawl space take a flashlight and look around , if you see water under the house you have a problem, if you see mold you have a problem. Same with attics just look around and if you see any loose wires, evidence of a roof leak or a dead body you have an issue. This at most is a 15 minute inspection and it's fun

 

[Ms. Janet]

FHA might not be requiring it but some clients are going to require it. They already are.

How is that different from what the FHA Handbook requires? What is your point?

From the Handbook:
The Appraiser must observe the interiors of all attic spaces.
The Appraiser must visually observe all areas of the crawl space and notify the Mortgagee of the deficiency of MPR and MPS when the crawl space does not satisfy any of the following criteria:

 

[CANative]

Nothing has changed in the attic and crawl space observation protocols Tim. The prior term was "inspect the property in it's entirety" and now it's "inspect all...."

Entirety = All

 

[Duke 73]

It HAS changed. The are now requiring a more extensive inspection of the crawl and attic. If it didn't change....then the verbiage would be exactly the same, but it isn't. They came out with a new handbook for a reason. They want us to do the job of a home inspection. It HAS changed.

 

[Non Sequitur]

I remember when Fannie introduced the "new" forms in 2004-5, appraisers screamed and hollered and said fees will go up. Then the 1004MC, fees will go up. Most recently CU, fees will go up.

Nothing happened for any of that, and nothing will happen next week with FHA fees.

 

[CANative]

It HAS changed. The are now requiring a more extensive inspection of the crawl and attic. If it didn't change....then the verbiage would be exactly the same, but it isn't. They came out with a new handbook for a reason. They want us to do the job of a home inspection. It HAS changed.

You're going to have to show me a cite or something.

I can easily show you why I know you're wrong but I'm tired of doing all the work.

 

[CANative]

I remember when Fannie introduced the "new" forms in 2004-5, appraisers screamed and hollered and said fees will go up. Then the 1004MC, fees will go up. Most recently CU, fees will go up.

Nothing happened for any of that, and nothing will happen next week with FHA fees.

I think higher fees will be the expectation from users so I think there is an opportunity to raise fees. I'm going from $450 to $500 for non-complex urban/suburban properties.

 

[CANative]

Comparison between "old" and "new"

4150.2 (Appendix D)


These guidelines are provided to assist in the examination of the property. To perform this analysis, the appraiser must have full access to all property improvements.


If unable to visually evaluate the improvements in their entirety, contact the lender and reschedule a time when a complete visual inspection can be performed. This includes access to the crawl space and attic. The appraiser is not required to disturb insulation, move personal items, furniture, equipment, plant life, soil, snow, ice or debris that obstructs access or visibility.


An inspection done in accordance with these guidelines is visual and is not technically exhaustive. These guidelines are applicable to buildings with four or less dwellings units and their related property improvements.


Attic – Enter the attic and observe the interior roofing for insulation, deficient materials, leaks or readily observable evidence of significant water damage, structural problems, previous fire damage, FRT sheathing, exposed and frayed wiring and adequate ventilation by vent, fan or window. If any of these deficiencies exist, condition the appraisal on their repair and prepare the appraisal “subject to repairs” and/or “subject to inspection”.


The attic must be entered, at a minimum, by head and shoulders, whether access is by pull-down stairway or scuttle. Size of the scuttle and accessibility of the attic dictate the level of entry.


4000.1


k. Attic Observation Requirements


The Appraiser must observe the interiors of all attic spaces.


The Appraiser is not required to disturb insulation, move personal items, furniture, equipment or debris that obstructs access or visibility. If unable to view the area safely in their entirety, the Appraiser must contact the Mortgagee and reschedule a time when a complete visual observation can be performed, or complete the appraisal subject to inspection by a qualified third party. In cases where access through a scuttle is limited and the Appraiser cannot fully enter the attic, the insertion of at least the head and shoulders of the Appraiser will suffice.

If there is evidence of a deficient condition (such as a water-stained ceiling, insufficient ventilation, or smell of mold), the Appraiser must report this condition, and render the appraisal subject to inspection and repairs if necessary.


If there is no access or scuttle, the Appraiser must report the lack of accessibility to the area in the appraisal report. There is no requirement to cut open walls, ceilings or floors.


An observation performed in accordance with these guidelines is visual and is not technically exhaustive.