FHA appraisal, change of client?

[dianajean]

I completed an FHA appraisal, purchase on a Berwyn 2-flat 08/17/09, the deal did not close and the realtor has a new buyer/lender/contract, the original client/lender has agreed to release his interest in the appraisal, but I have questions,

#1 I intend to use the 1004D, is this acceptable on a 2 unit or is there another form?

This market has been in decline and the current market value is probably a bit lower than the effective date, so I plan to add another MC addendum and add a couple more current comparables to support my conclusion.

#2 Does the original lender/client remain the same on page 1 with the new lender/client appearing on the 1004D?

#3 I am also wondering, in a declining market if a whole new appraisal shouldn't be ordered considering this is already almost 90 days old. flustered to say the least.

 

[Elliott]

diana said, ...and the realtor has a new buyer/lender/contract, the original client/lender has agreed to release his interest in the appraisal,

#1 No 1004D isn't the right form
#2 See Answer #1
#3 Yikes!!! Declining market!!!

Talk to Lender #2 and talk in terms of a new assignment, suggest new comparables
which reflect the current market, suggest a updated inspection. Tell them you might
reduce the fee a little.

 

[Pamela Crowley (Florida)]

It's FHA, therefore, you have NOTHING to do with it for another client, another borrower, for ANY reason. Just tell them they will have to deal with FHA only, not you.

 

[Michael Tipton]

http://appraisersforum.com/showthread.php?t=161965

Visit FAQ #75 in your current copy of USPAP.

 

[Jay Emmar]

I completed an FHA appraisal, purchase on a Berwyn 2-flat 08/17/09, the deal did not close and the realtor has a new buyer/lender/contract, the original client/lender has agreed to release his interest in the appraisal, but I have questions,

#1 I intend to use the 1004D, is this acceptable on a 2 unit or is there another form?

This market has been in decline and the current market value is probably a bit lower than the effective date, so I plan to add another MC addendum and add a couple more current comparables to support my conclusion.

#2 Does the original lender/client remain the same on page 1 with the new lender/client appearing on the 1004D?

#3 I am also wondering, in a declining market if a whole new appraisal shouldn't be ordered considering this is already almost 90 days old. flustered to say the least.

It doesn't matter if the original lender/client agrees to "release" the appraisal or not - it is an FHA appraisal thus the appraisal which is tied to the case # remains in effect for 6 months. As Pam said, they have to deal with the FHA.

There cannot be a new assignment for this property unless it goes conventional, not FHA. No 1004D, no "update", nada. If the "new" lender attempts to order a case # for this property it will be denied as the current case # is in effect.

Based on your statement that there is a new buyer, new lender, and new contract, and assuming it goes conventional, it is a new assignment, period.

What you charge for your fee is your decision, the rest of the above issues are clearly addressed in USPAP and the FHA 4150.2 and Appendix D.

 

[CANative]

Why are you doing FHA assignments when you don't understand FHA protocol?

 

[dianajean]

Thanks for input, appreciate the fast replies. I am NOT changing the client/lender,etc as requested by the new lender. As for protocol Mr. Greg sometimes issues/protocols get confusing/fuzzy when the client/realtor is calling, e mailing, bugging you to death, thus the advantage of having this awesome forum. I emailed the client a copy of the paragraph from 4150.2 that applies. Should close the issue.

 

[CANative]

What paragraph in 4150.2 addresses this issue?

What you're looking for is in HUD Handbook 4000.2.

 

[Jay Emmar]

What paragraph in 4150.2 addresses this issue?

What you're looking for is in HUD Handbook 4000.2.

My bad, thanks for the correction

 

[RSW]

I don't think I can deal with another thread on this topic!