FHA appraisal, change of client?

[hglenbetts]

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.[/quote]

PLEASE!!!
Do hard working FHA Roster appraisers in your area a favor, and remove yourself from the roster until you know proper FHA protocol.

 

[hglenbetts]

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

:new_2gunsfiring_v1:.....:Eyecrazy:

 

[dianajean]

OMG, I thought that this would settle the issue 4150.2 appendix D, For HUD/FHA

FHA appraisals are subject to the following scope of work, intended use,
intended user, definition of market value, statement of assumptions and
limiting conditions, and certifications. Modifications, additions, or deletions to
the intended use, intended user, definition of market value, or assumptions
and limiting conditions are not permitted. The appraiser may expand the
scope of work to include any additional research or analysis necessary based
on the complexity of this appraisal assignment. Modifications or deletions to
the certifications are also not permitted. However, additional certifications
that do not constitute material alterations to this appraisal report, such as
those required by law or those related to the appraiser's continuing education
or membership in an appraisal organization, are permitted.

Now I am once again confused, the original broker is calling beating me up, told them I am still researching, etc., want to cover my a-- and with their attitude, they are soon going to be on my "former client" list. So, it appears it IS possible to transfer this based on the documentation you provided in your reply. I am going to have to call FHA myself, Chgo office only and hopefully get a straight answer. These are conflicting documents leaving alot of "gray" areas.

 

[Em Tee]

There is NO gray area. Read Greg's post again since he was kind enough to include the information you need.

The section you quoted has nothing to do with your situation.

m2:

 

[CANative]

Relax Diana... Nothing bad is going to happen. Just tell them case number transfers include the appraisal and is a matter between lenders. The problem is not your lack of experience (in this regard) it is the lack of knowledge on the part of the competing lenders. There are too many noob lenders who have just recently started dabbling in FHA simply because they have run out of conventional options. They don't know the rules and are trying to make their problem your problem.

Just go to HUD.gov find the housing handbooks, open 4000.2, Chapter 4 and email the link to whoever is hasseling you.

 

[dianajean]

Thanks soo much for your help, these guys are certainly brutal, it appears based on this information you provided that the appraisal can be transferred to the new lender. The subject is in a declining market and I'm sure that if underwriting is conscious they are going to kick it back. I'm thinking that to address "current" market conditions, add more comps, would just be a "new" appraisal.

 

[CANative]

They don't understand how FHA MI works.

it appears based on this information you provided that the appraisal can be transferred to the new lender.

"It appears?" LOL.

 

[dianajean]

stuck in canned "appears" thanks again

 

[CANative]

Just teasing you.

FWIW I apologize for "appearing" to be mean. I know exactly what you're going through and it's very uncomfortable. I was just trying to point out that knowledge is power. If I can make you look stuff up instead of just telling you what to do you will have more power to deal with icky clients and ickier non-clients.

Kind of like teaching someone how to fish instead of giving him a fishstick. Or something like that.:icon_mrgreen:

 

[dianajean]

Knowledge is certainly power no doubt about that, and I can't tell you how much I appreciate all of this info you have passed on to me. I have all of this bookmarked for future reference. First time I accessed FHA connection for info/guidance. I e mailed the "broker" with the info, and he actually e mailed me back, apologized and wants to know "where and how to find" info to transfer FHA case file number etc., -od, help us all, I feel like I'm in the twilight zone, maybe I am.