Here Is Why FHA Fees Go Up $150

[Meandering]

The C&R has been in effect since 4/1/2011.

If you are being offered work below C&R you can now report that to the FDIC.
from the FDIC's website. AND... you can claim for back money owed for 3 years.

I think that is the message lenders and owners are getting.

It's much less expensive to pay you what they are supposed to pay you, other than defending against the FDIC.

.

 

[Ariba]

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

"explain why a 'FULL' inspection could not be completed, along with a photo of attic/crawl."

 

[Vermonter]

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 dunno...my fees went up for each of those.

 

[B.George]

Straight from the new 4000.1 handbook:

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.

m. Crawl Space Observation Requirements
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:
• The floor joists must be sufficiently above ground level to provide access for
maintaining and repairing ductwork and plumbing.
• If the crawl space contains any system components, the minimum required vertical
clearance is 18 inches between grade and the bottom of the floor joists.
• The crawl space must be properly vented unless the area is mechanically conditioned.
• The crawl space must be free of trash, debris, and vermin.
• The crawl space must not be excessively damp and must not have any water pooling.
If moisture problems are evident, a vapor barrier and/or prevention of water
infiltration must be required.
The Appraiser must report any evidence that may indicate issues with structural support,
dampness, damage, or vermin that may affect the safety, soundness and security of the
Property.
In cases where access through a scuttle is limited, and the Appraiser cannot fully enter the
crawl space, the insertion of at least the head and shoulders of the Appraiser will suffice. If
there is no access to the crawl space but there is evidence of a deficient condition (such as
water-stained subflooring or smell of mold), the Appraiser must report this condition and the
Mortgagee must have a qualified third party perform an inspection.



Therefore, we must FULLY ENTER the attic and the crawl space areas if possible to do so.

 

[CANative]

Yep. Exactly the same as it has always been.

Straight from the new 4000.1 handbook:

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.

m. Crawl Space Observation Requirements
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:
• The floor joists must be sufficiently above ground level to provide access for
maintaining and repairing ductwork and plumbing.
• If the crawl space contains any system components, the minimum required vertical
clearance is 18 inches between grade and the bottom of the floor joists.
• The crawl space must be properly vented unless the area is mechanically conditioned.
• The crawl space must be free of trash, debris, and vermin.
• The crawl space must not be excessively damp and must not have any water pooling.
If moisture problems are evident, a vapor barrier and/or prevention of water
infiltration must be required.
The Appraiser must report any evidence that may indicate issues with structural support,
dampness, damage, or vermin that may affect the safety, soundness and security of the
Property.
In cases where access through a scuttle is limited, and the Appraiser cannot fully enter the
crawl space, the insertion of at least the head and shoulders of the Appraiser will suffice. If
there is no access to the crawl space but there is evidence of a deficient condition (such as
water-stained subflooring or smell of mold), the Appraiser must report this condition and the
Mortgagee must have a qualified third party perform an inspection.



Therefore, we must FULLY ENTER the attic and the crawl space areas if possible to do so.

 

[Michigan CG]

Yep. Exactly the same as it has always been.

You can continue to spout that nothing has changed but the old FHA rules have been in place for how long? It is obvious that they were never enforced. Now that some wording has changed and there is the threat of strict enforcement people are going to charge more.

This seems to be a hobby of yours telling everyone that everything is the same, but you don't do FHA anymore; you can't because you don't carry E and O. So what dog do you have in this hunt?

 

[CANative]

I took them seriously without them having to clarify or use "stronger" language.

Should = must
Entirety = All
Head and shoulders = Head and shoulders.

 

[CANative]

You can continue to spout that nothing has changed but the old FHA rules have been in place for how long? It is obvious that they were never enforced. Now that some wording has changed and there is the threat of strict enforcement people are going to charge more.

This seems to be a hobby of yours telling everyone that everything is the same, but you don't do FHA anymore; you can't because you don't carry E and O. So what dog do you have in this hunt?

You're a jack ***. I can do FHA tomorrow if I wanted to and I do carry E&O. What's wrong with you?

I just finished a dozen fee assignments last month and I just inspected a fee assignment property yesterday afternoon. I turned down 2 others and had an AMC decline 2 because I wanted additional time.

 

[CANative]

Suppose we have a competition on who knows more about FHA?

 

[steven pier]

By the way I turned down my first FHA today. I have plenty of work. I also got $450 on a conventional today from an AMC. And it isn't a hard appraisal. I think AMC's will get the message. We have to be persistent. I'm even getting begged by RELS to do some work for them. And my fee for it is $700! Two weeks ago Wells Fargo called and wanted a desk review. The paid me $400! They are getting the message. If they want quality work they have to pay quality fees.

Be very careful with Rels, they like to submit appraisals to state boards for no reason what so ever. Have recently done it to a few colleagues of mine and all of us no longer accept their work.