FHA Handbook Updates Confusion And Clarification

[Terrel L. Shields]

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Why the extra 4?

 

[CANative]

Why the extra 4?

The title of this thread is confusion and clarification.

 

[Tejus]

The webinar was a major disappointment. I tried to ask questions but was unable to get thru.

There were specific questions about the appraisal inspection requirements. The general FHA staff response was ignore the Handbook inspection requirements, specify your scope of work, use your own judgment, do what you want and report your findings.

The FHA Staff ignore the fact that FHA requires the Appraiser to state in the report the property meets the HUD 4000.1 requirements and the Appraiser will be held to the Handbook requirements.

FHA is laying the groundwork for the Appraiser to be sued.

 

[David Thompson]

I just finished watching the HUD Webinar, lots of information, some clarification and some confusion. Rob, the HUD guy said they do not expect us to walk across rafters in the attic, just report what we can see. He was vague on the crawl space inspection but also just said to report what you can see. Several people asked if the really had to crawl the crawl space and he did not give a good answer. Regarding appliances, he said that refrigerators, washers. dryers are not Real Property and do not have to be checked even though the Handbook says all appliances that convey.

 

[CANative]

The FHA Staff ignore the fact that FHA requires the Appraiser to state in the report the property meets the HUD 4000.1 requirements and the Appraiser will be held to the Handbook requirements.

The old handbook had a specific statement requirement. The new one doesn't say the same thing in so many words.

 

[Tejus]

The old handbook had a specific statement requirement. The new one doesn't say the same thing in so many words.

This was explicitly discussed near the end of the webinar.

A semi-irate caller was upset the FHA staff's response to many Q/A inspection questions was for the appraiser to use their own judgment. The caller pointed out the Appraiser is required to comply with HUD 4000.1 in the appraisal. The webinar presenters confirmed this. The caller questioned what will happen if the Appraiser's judgment is different than the Handbook requirements, the webinar presenters did not have an answer.

 

[CANative]

The property observation (inspection) protocol is essentially unchanged. This is a red herring for some and by obsessing on it they miss the more important things.

IMO, a statement of some kind is still required based on the verbiage in the 4000.1 in several sections.

For example:

B. APPRAISER AND PROPERTY REQUIREMENTS FOR TITLE II FORWARD AND
REVERSE MORTGAGES

The appraisal process provides the Mortgagee with necessary information to determine if a
property meets the minimum requirements and eligibility standards for a Federal Housing
Administration (FHA)-insured Mortgage and will serve as adequate security for a specific FHAinsured
Mortgage. Mortgagees bear primary responsibility for determining eligibility and the
sufficiency of collateral; however, the Appraiser provides preliminary verification that the
Property Acceptability Criteria have been met and an appraised value for the property.

 

[JTip]

The webinar was a major disappointment.

I liked the fella giving the presentation. "Just use your best judgement, if the fridge is getting cold then it probably works." "Just put your hand on the hot water tank to see if it's getting hot (utilities just got turned on)". Right.......

Note to self: See if E&O will pick up coverage for an exploding hot water tank that I said was 'fine and dandy'.

Glad I passed on that FHA assignment today. I don't think $600 is enough.....maybe a grand and sub out a home inspection for $300 to cover my rear......

 

[CANative]

You don't have to say it's fine and dandy. You only have to say something if it doesn't work.

 

[bugknuckles]

I thought the purpose of the Webinar was to clarify. What a disappointment. How could you be any more vague with your answers? What about the dishwasher, does anyone know any more now than before, are we really expected to ask the home owner to have the dishwasher running?and they just sorta skipped over the instances (which are more times than not) when that is not possible. Loved the response concerning the liability issue of flooding, reminded me of a Nancy Pelosi response, it has to happen first to find out. I think we all know how that would turn out. Enter the crawl space? Yes/no/not when unsafe/around a corner?
Liability...liability !!

We Must stand together for fee increases... 500+