FHA appraisal, change of client?

[Webbed Feet]

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.

After reading the entire thread, and this above post, I'm not sure you understand that an "Update" ......... IS .... a new assignment and a new appraisal!

By the way, the 1004d form is only useful for it's bottom half completion certificate. For the above half "Update" portion it should be considered on the level of toilet paper. Good luck recovering from the stress of this one. But you do need to consider some of the posts that are encouraging you to get up to speed on this stuff before doing more FHA assignments.

 

[residentialguy]

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

O Lord, it's hard to be humble...
when you're perfect in every way.

 

[BlueDog007]

Here is the link...........go to Chapter 4............Thanks Greg!

http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4000.2/index.cfm

 

[tmcneeley]

FHA # are tied to loans, so if that loan fell through with the original lender/client, then that FHA case number is dead and not transferrable. THIS NEW ORDER SHOULD BE HANDLED AS A COMPLETELY NEW APPRAISAL, WITH A FULL FEE FOR AN FHA APPRAISAL, AND A NEW FHA CASE NUMBER. NO ANDS IFS OR BUTS ABOUT IT.

I am sick of the scabs in our business handling things the wrong way, bringing down our industry to help these multi-billion dollar banks cut corners. No you cannot do a 1004D, are you serious? New loan=new appraisal, period!

 

[Webbed Feet]

FHA # are tied to loans, so if that loan fell through with the original lender/client, then that FHA case number is dead and not transferrable. THIS NEW ORDER SHOULD BE HANDLED AS A COMPLETELY NEW APPRAISAL, WITH A FULL FEE FOR AN FHA APPRAISAL, AND A NEW FHA CASE NUMBER. NO ANDS IFS OR BUTS ABOUT IT.

I am sick of the scabs in our business handling things the wrong way, bringing down our industry to help these multi-billion dollar banks cut corners. No you cannot do a 1004D, are you serious? New loan=new appraisal, period!

A really good rant should be reread several times for correctness before posting. Otherwise, you'll make a classic mistake and devalue your own rant.

FHA case numbers run with real estate, not the loan. That is why a lender can transfer the FHA appraisal to a different lender to be used for a different loan during the six month period the case number is following the real estate.

 

[RSW]

Webbed is correct once again. The case # runs with the real estate and not the loan. That is why a borrower can go to another lender and that lender can accept the loan package which has the original appraisal. Also, another buyer may also use the same case # as it runs with the real estate. Sounds like TM needs to do a little bit of reading.

 

[tmcneeley]

Buddy, you are wrong. That is only the case when it is the same borrower/buyer. You should check up on your FHA guidelines. If it is the same buyer, then yes they can transer, but as you recall, the OP stated a new buyer/lender.

 

[tmcneeley]

So it is okay to do a 1004D on a new contract? Absolutely not. Plus a 1004D in a declining market would necessitate you mark the box where it states "has the value changed since the date of the original appraisal" YES. So the 1004D is useless, along with non-compliant. FHA does tie their numbers to loans. Like I stated, they can be transferred, but only when it is the same borrower, and they have to have the lender release the case number. Per USPAP, this is a new assignment. How could you have an effective date of the appraisal prior to the date of the new contract. RIDICULOUS!!!!

 

[Pamela Crowley (Florida)]

tmcneeley, you need to take a FHA appraising class, asap.

 

[tmcneeley]

Pam,

don't forget that any appraisal you send out needs to be FHA compliant, and USPAP compliant.

BTW, I just took an FHA class in June, but thanks for the advice.

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