FHA 'inspection Requirements' Vs State Law

[CANative]

It's a visual observation only. Are there any leaks you can see? Did the burners come on when you twisted the knob? Did the flow decrease when you flush the toiled while the bathtub and sink were running... blah, blah, blah.

An observation performed in accordance with these guidelines is visual and is not technically exhaustive.

Put this in your intended use statement and along with Statement of Assumption #5 that is pre-printed you're good to go.

b. Intended Use and Intended Users of Appraisal

The intended use of the appraisal is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage (24 CFR § 200.145(b)).
FHA and the Mortgagee are the intended users of the appraisal report.

The FHA Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only.

 

[Walter Kirk]

The FHA has been confusing the jobs of appraisers and inspectors for years. Its one of the reasons that I stopped doing FHA work after they abolished the fee panel. If the FHA wants a complete inspection of a property it should require an inspection by a licensed inspector, that inspection report should be given to the appraiser at the time of assignment.

It will never happen, its too logical.

 

[bnmappraisal]

But, has anyone read a home inspection report recently? Those guys have more CYA BS in there than appraisers.

Too true! And I think they can usually have the report done right there on the spot...granted their inspections usually take longer than ours

 

[CANative]

The FHA has been confusing the jobs of appraisers and inspectors for years. Its one of the reasons that I stopped doing FHA work after they abolished the fee panel. If the FHA wants a complete inspection of a property it should require an inspection by a licensed inspector, that inspection report should be given to the appraiser at the time of assignment.

It will never happen, its too logical.

That's not what they want and that's why they say that so many times in so many published handbooks and letters.

 

[Mr Rex]

What we need is a Home Inspector's Union.

 

[SteveSpy]

I fear these updated protocols may be in violation of the Illinois Home Inspector Licence act.

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=022504410K1-10

I've been working on the following verbiage to ensure I am communication that I am not functioning as a home inspector:


The appraiser is not a Licensed Illinois Home Inspector and only make observations as to evidence of deterioration per the Illinois Home Inspection Act.

"Home inspection" means the examination and evaluation of the exterior and interior components of residential real property, which includes the inspection of any 2 or more of the following components of residential real property in connection with or to facilitate the sale, lease, or other conveyance of, or the proposed sale, lease or other conveyance of, residential real property:
(1) heating, ventilation, and air conditioning system;
(2) plumbing system;
(3) electrical system;
(4) structural composition;
(5) foundation;
(6) roof;
(7) masonry structure; or
(8) any other residential real property component as established by rule.

It is illegal for a person, including an entity, to act, engage, develop, practice or advertise as a home inspector without a proper home inspector license issued under the Illinois Home Inspector License Act. A person who violates this is guilty of a Class A misdemeanor.

If I am reading the law correctly, it states that if I certify 2 or more of any of the above, which FHA requires appraiser's to do, I am acting as a Home Inspector, and since I am not properly Licensed, am in violation.

Am I too paranoid? Can Illinois Appraisers comply with the updated requirements without being in violation of the Act?

Thoughts?

 

[Mike Kennedy]

I fear these updated protocols may be in violation of the Illinois Home Inspector Licence act.

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=022504410K1-10

I've been working on the following verbiage to ensure I am communication that I am not functioning as a home inspector:


The appraiser is not a Licensed Illinois Home Inspector and only make observations as to evidence of deterioration per the Illinois Home Inspection Act.

"Home inspection" means the examination and evaluation of the exterior and interior components of residential real property, which includes the inspection of any 2 or more of the following components of residential real property in connection with or to facilitate the sale, lease, or other conveyance of, or the proposed sale, lease or other conveyance of, residential real property:
(1) heating, ventilation, and air conditioning system;
(2) plumbing system;
(3) electrical system;
(4) structural composition;
(5) foundation;
(6) roof;
(7) masonry structure; or
(8) any other residential real property component as established by rule.

It is illegal for a person, including an entity, to act, engage, develop, practice or advertise as a home inspector without a proper home inspector license issued under the Illinois Home Inspector License Act. A person who violates this is guilty of a Class A misdemeanor.

If I am reading the law correctly, it states that if I certify 2 or more of any of the above, which FHA requires appraiser's to do, I am acting as a Home Inspector, and since I am not properly Licensed, am in violation.

Am I too paranoid? Can Illinois Appraisers comply with the updated requirements without being in violation of the Act?

Thoughts?

No. You're not being paranoid.

 

[bnmappraisal]

If I am reading the law correctly, it states that if I certify 2 or more of any of the above, which FHA requires appraiser's to do, I am acting as a Home Inspector, and since I am not properly Licensed, am in violation.

Am I too paranoid? Can Illinois Appraisers comply with the updated requirements without being in violation of the Act?

Thoughts?

Sounds like your IL research is mirroring what Restrain found in his research!

 

[bnmappraisal]

It's a visual observation only. Are there any leaks you can see? Did the burners come on when you twisted the knob? Did the flow decrease when you flush the toiled while the bathtub and sink were running... blah, blah, blah.

An observation performed in accordance with these guidelines is visual and is not technically exhaustive.

Put this in your intended use statement and along with Statement of Assumption #5 that is pre-printed you're good to go.

I understand where you're coming from CAN (I'm pretty sure anyway!) But as you even point out, it seems we need to add EVEN MORE CYA to our reports than we already do! A.K.A. even more time to our reports (granted we can clone/canned statement that into a report, but still)

 

[RSW]

This topic was on the Facebook Appraiser network yesterday. The new FHA policy goes further than just saying that XX appliance is working on the day of inspection / testing. Without a change in verbiage on the 1004UAD, it now means that you are certifying by your signature that the appliances will work for a "reasonable" period after that inspection / testing / certification date.

Have fun with this one!

Please provide documentation about this. I want to see something in writing.