[Tom McClure]

Received these new appraisal guidelines from a major lender yesterday;

"Revised FHA Appraisal Guidelines in Effect for Appraisals Done after April 1, 2009

I wanted to reach out to you to keep you informed of some revised federal guidelines that outline 10 things that appraisers must do or provide for all FHA appraisals done after April 1, 2009:

1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71).

2. At least 2 comparable sales within 90 days of appraisal date.

3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables.

4. Bracketed listings using both dwelling size and sales price when possible.

5. Adjust active listings to reflect the List To Sales Price Ratio.

6. Adjust pending sales to reflect contract sales price when possible.

7. Include original list price and any revised list prices.

8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales.

9. Absorption Rate Analysis.

10. Known or reported sales concessions on active and pending sales.

FHA also is restating its warning that..."Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA."

We have raised our fee for FHA accordingly, what do you think?

Tom McClure, Ohio

[Mary Tiernan]

At least 2 comparable sales from within 90 days - in my area, that would mean no FHA financing - that is, if the appraisal is completed correctly. We do have some appraisers round these here parts who think if it sold within 90 days, it MUST be comparable.

Comparable = compares to subject

Sale = sold

[Pamela Crowley (Florida)]

Is this from a published FHA Mortgagee Letter?

[Jan Roseberry]

Some of those sound like lender guidelines rather than FHA. Down south in Tuscarawas County those requirements are impossible to meet (were impossible to meet in the heyday) unless your imagination is as fertile as our soil. Would be especially fun in Carroll or Harrison counties that are serviced by 3 or more multiple listing systems.

[Carnivore]

Some of those can not be a requirement. They are guidelines that would require and explanation of why the, for example comps are not in the 60 day window...

It is obvious to me that UW's for the very first time in their careers are actually trying to pay attention and even amybe attempt to understand what the rules say and mean.

[Mr Rex]

Why not read it for yourself. Mortgagee letter 2009-09: http://www.hud.gov/offices/adm/hudcl...ers/mortgagee/


SUBJECT: Adoption of Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71) and Appraisal Reporting Requirements for Properties located in Declining Markets




FWIW, I think the price of FHA appraisals just went up

[cathy0405]

Originally Posted by Mr Rex

Why not read it for yourself. Mortgagee letter 2009-09: http://www.hud.gov/offices/adm/hudcl...ers/mortgagee/


SUBJECT: Adoption of Market Conditions Addendum (Fannie Mae Form 1004MC/Freddie Mac Form 71) and Appraisal Reporting Requirements for Properties located in Declining Markets




FWIW, I think the price of FHA appraisals just went up

I just quoted $50.00 more for two potential FHA requests due to the necessary 1004MC requirement for a declining market. I still haven't received the orders probably due to the fee increase and the mere mention of "DECLINING MARKET".

[OSU Beavers]

Cathy quote your TOTAL fee but do not give a breakdown. Clients want a $4.99 value meal but get mad if they find out that their large soda pop cost $1.69.

[Seymon Hartzog]

I quoted my higher fee yesterday for 3 orders. No calls back. Skippy musta took em for a buck ninety nine.

[Rick Neighbors]

Hang in there, I added $50 to all my appraisals for the 1004MC.

So far no problems. Most of the folks just say "What's a 1004MC?"

Rick