LO Wants Another FHA Appraisal.

[hglenbetts]

Sorry for the mis-spelling. I just finished washing my truck and my fingers are numb.

Ya, isn't spring great?? It's about 50 here outside detroit today..

 

[ZZGAMAZZ]

Mike: Not meaning to be crass but I can wipe my axx with the regs all day and it won't help me to determine the legitimacy of the order.

RSW: Yours is a great example of sound, deductive reasoning; but that type of analysis shouldn't be required in lieu of a definitive protocol that is made known to the lending and appraisal communities alike.

Cat: It seems inconceivable that a 2nd FHA Case# would be assigned (or the original# reassgned) based upon the request of a MB.

This rises an ethical question: Should the original appraiser follow-up with HUD if he or she believes this to be the scenario? The SOW is fulfilled and the assignment is completed--even if the original report was completed "subject to" because it is the responsibilty of the D.E.U. to determine to what extent if any the appraiser is needed to perform a C.I.R.

 

[Caterina Platt]

ZZGAMAZZ,

Unfortunately, it's happening. There isn't a second case number issued, the LO manages to recycle the original case number by claiming Appraiser A never finished the report.

What is supposed to happen is, once the assigned appraiser submits the report, it is logged with HUD.

What is happening is the report that doesn't make the LO and borrower happy gets round filed. They order a new appraisal from the next guy who'll give them some unsavory assurances and they get the case number assigned to the new appraiser by telling the HUD people that Appraiser A is sick, out of the area, couldn't do the assignment due to workload, whatever.

What I think needs to change is that we should submit our reports directly to HUD, who would then forward it to the DEU. This would stop this nonsense.

 

[Riick]

What I think needs to change is that we should submit our reports directly to HUD, who would then forward it to the DEU. This would stop this nonsense.

Agreed... Oh so EASY
........ but then how could they get away with the lying, cheating, and abuse?

 

[Michael Tipton]

Mike: Not meaning to be crass but I can wipe my axx with the regs all day and it won't help me to determine the legitimacy of the order.

Mortgagee Letter 2008-09 states that a FHA case number is NOT required for the second appraisal requirement for high LTVs above $417,000 in declining markets. It is your choice to determine to what degree you choose to know the FHA regs.

 

[RSW]

RSW,

Have you received the order with the case #? If you can get that information, or perhaps FHA can search it from an address/borrower name? I'd certainly report to your area HOC. I had to do the very same last week.

What has been happening is when the first appraisal comes in and the LO doesn't 'like' the report for whatever reason (declining market, value, adverse conditions noted), they fail to log the report. This leaves the case number free to be reassigned to the next, hopefully less diligent appraiser who'll hit their number or ignore the other issue(s). The LO says something like the first appraiser was on vacation, declined the assignment,... whatever lie they come up with. It's a blatant abuse of the system and the Denver HOC was interested in following up when I contacted them.

Sorry, I don't have a case number because the LO called me first and gave me the address. I am not used to getting requests like this since I have not done any MB work for more than 5 years. I can't believe that they are turning FHA into the next sub-prime. I guess they will blame it on the appraisers again.:Eyecrazy:

 

[Lobo Fan]

I don't think that FHA is prepared for the tsunami of unethical lenders and incompetent appraisers. It is an ugly combination that too down the conventional market, and now the FHA is opening the door. Taking all comers as appraisers, and raising the caps on loans will just create a disaster.

 

[redfish]

That's most likely a result of the Mortgagee Letter 2008-09.

That is what I expected and assumed, but I got to the bottom of it yesterday. According to the VP of the client: the original appraiser is no longer on the approved list for his investor....the original appraisal was used to fund the FHA loan in house. The loan is being sold out to another investor.

The original appraiser has been removed from the list and they need someone on their list to provide an appraisal that supports the original opinion of value. Investor stip on an already insured loan. I thought it sounded fishy. I told the VP I would not be including the FHA case number on the report and he was fine with that. Took me awile to figure this one out.

 

[SANDY]

WHO at the FHA is watching this and other threads on what is happening to FHA mortgage originations?

What is the FHA hotline? Does it exist?
Or.. as some have reported - when notifying FHA of ummmm "discrepancies" in the process - they reach "Mr. DontCare" who suggests calling "Ms. WhoGivesadamm"

Exactly what we have experienced after numerous calls to Atlanta HOC. They are too busy bailing out lenders and homeowners to care about the mess they have created.

 

[Chris Colston]

RSW: How can an appraiser know if the order is bogus as the OP described, or a legitimate 2008-09 follow-up appraisal?

Who can perform the second appraisal?

The second independent appraisal must be completed by a FHA roster appraiser selected by the Direct Endorsement lender that is underwriting the mortgage. The lender independently engages the appraiser and is not to request a second case number through FHA Connection. The fee for the appraisal may be passed onto the borrower as any other closing cost.

m2: The order won't be from the mortgage broker!! m2: Know your client. Brokers are not DE lenders. Brokers rarely lend on anything, they BROKER the loan to someone else's money.