Here Is Why FHA Fees Go Up $150

[CANative]

Maybe I have purchased some since then. Why did you bring it up? What does my E&O status have to do with the the topic of this discussion?

 

[Vermonter]

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

....and if we can't the head and shoulders inspection is adequate.....Which is no different than before.

 

[azbassman21]

Short term maybe, the next slow down appraisers will cut their competitors throat the first chance they get. This hub-bub about FHA fees is nothing new. Years ago FHA fees were always higher and no one questioned them, then after the melt down when FHA was "the new sub-prime" fees fell in the toilet because appraisers were chasing work.

Fuel surcharges didn't last (remember the moaning and groaning about $2 gas prices?).
Higher fees for the "new" Fannie forms didn't last.
Higher fees for the 1004MC didn't last.
Higher fees for UAD and CU didn't even get off of the ground.
The moaning and groaning about the supposed "new" guidelines will pass and fees will be no different.

The only thing that will raise fees long term is the continued thinning of the herd. But the AQB is going to screw residential appraisers and open the flood gates before we gain to much traction.

What are they going to do, relieve the 4 year degree requirements? They can't do much in the way of education and experience requirements, and good luck finding anyone to train appraisers. Then again, they will do whatever the big banks that line their pockets want.

I've had enough with these weak fees, especially in my area which is semi easy to appraise and has an abundance of appraisers. I've been waiting for this mass exodus of retiree appraisers to hit so that I may capitalize on the increased demand and name your price environment I have been told is to come within the next 5 years. I've been waiting 7 years, and it's still a 5 year window. It seems like this industry just keeps on takings steps in reverse.

I have had an increasing number of companies calling me to complete assignments, with no qualms about my increased fees I've implemented as of late, so I think these new FHA guidelines are having some effect on the overall demand for all appraisals. I'm just glad I have made the decision to exit this industry and have other avenues of income so this isn't relied upon as heavily as it once was, because it doesn't sound like the overall outlook for this industry is anything but positive.

 

[Non Sequitur]

What are they going to do, relieve the 4 year degree requirements?

No, the 4 year degree along with a few appraisal specific classes will be enough eventually.

I've been waiting for this mass exodus of retiree appraisers to hit so that I may capitalize on the increased demand and name your price environment I have been told is to come within the next 5 years. I've been waiting 7 years, and it's still a 5 year window. It seems like this industry just keeps on takings steps in reverse.

It's never going to happen. We are a service industry, when the users of our services scream loud enough the flood gates will be opened again.

I'm just glad I have made the decision to exit this industry and have other avenues of income so this isn't relied upon as heavily as it once was, because it doesn't sound like the overall outlook for this industry is anything but dismal.

Smart move, even if the appraisal bidness had a great outlook. Options are always preferred.

 

[azbassman21]

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

What an accomplishment on which to rest. The all knowing King of FHA/HUD guidelines.

 

[azbassman21]

No, the 4 year degree along with a few appraisal specific classes will be enough eventually. It's never going to happen. We are a service industry, when the users of our services scream loud enough the flood gates will be opened again.
Smart move, even if the appraisal bidness had a great outlook. Options are always preferred.

Seems hard to fathom a swarm of new appraisers into this industry with the training requirements imposed. Plus, the average age of appraisers is pretty high from what I've heard and seen in classes. If a young guy like me is sick of it after 7 years (2 of training), I can't imagine how tired some of these 25 year vets must be with all the changes and new tweaks to the system.

 

[Non Sequitur]

Seems hard to fathom a swarm of new appraisers into this industry with the training requirements imposed.

That's why the AQB has a paper on the table now to change training requirements. It's coming, the only question is "How low will they go?"

 

[Joe Flacco]

I don't do FHA but at $600 bucks that would make having a well paid staff appraiser feasible. I'm not going into crawl spaces though.

 

[glenn walker]

A lot of panic about a lot of nothing. I keep repeating that 4000.1 is almost the same as 4150.00.

I started FHA 20+ years ago and head & Shoulder inspections, crawl space, operating mechanical equipment, peeling paint on pre-1978 homes, loose wiring, testing a sample set of electrical outlets, turning on the water flushing toilets, observing the roof from the ground for evidence of missing shingles , looking at interior ceilings for evidence of water stains due to a leaking roof , reporting external issues like rail road tracks, power lines, airports or being located adjacent a gas station. ** Nothing New.

Use some common sense FHA/HUD does not require you to crawl under the house or walk on rafters when there is no supportable floor. A finished attic with floor then yes you may enter and observe. If not stick your head in the scuttle and with a large flashlight look around the best you can and take some photos, if you see something weird like loose wires, a dead body or a hole in the underside of the roof then report it. Look in the crawl space with your flashlight and take some photos. If you see evidence of water leaking from pipes underneath or water draining under the home call it out .

Call your local HOC if you are not sure and explain the situation because the appraisers are fairly nice and most of the time they will tell you to observe what you can physically. They do not expect you to walk on a rafter or 2 X 4 and fall through the owners ceiling. Write down the day and time of your conversation and document it in your work file.

In Summary: Nothing has really changed it's just many newer appraisers may have not been doing FHA properly for a long time and many never read 4150.00 or took a class. It was easier back in the day because FHA required us to use VC sheets ( valuation condition ) the form walked you step by step through the property with check boxes with questions about electrical , peeling paint, termites etc.

 

[CANative]

Well said Glenn!