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Yes, and was not very nice about it, either!
Murphys rule?
Or, Let God sort 'em out?
LOL
what is even more scary, i personally know. year after the property settles HUD will do a percentage of quality control HUD reviews. that HUD reviewer will tell you every mistake you made, noting page & paragraph number. they will send you a certified letter from HUD. after you wet your pants, and see how many mistakes you made. maybe at worst you have to take a class in the next 60 days. worst case, if you didn't learn the 1st time, you get suspended, if you repeat errors, like peeling paint. i will say that it made me a more better FHA appraiser. really read the manual about what they expect for the inspection & other parts of the appraisal. like glen notes, the more you read the better you get.
I have attached a PDF of the old FHA/HUD VC Valuation Condition work sheets - These in my opinion should have never been taken out of the FHA reports because they walked the appraiser through the most commonly found issues he/she will encounter. There were actually very few real serious changes between today's 4000.1 and the prior 4150.2 handbooks, when it comes to the basic issues at hand. I know Bradford and Alamode still have these in there archived forms. I recommend any appraiser who came in after the VC sheets were eliminated to make a desktop PDF and print off the forms, this will eliminate 85% of issues appraisers are always looking for in 4000.1 handbook.
Its a very good check sheet to go through before finishing your report. With that said I also just try to use common sense , on a refinance I tend to be more flexible because they live there and obviously have no issues with some things and unlike a new buyer there eyes are open. On a purchase I am most concerned with costly repair issues , like roofs, foundations, FWA/CAC units operating and so forth. On Health & Safety issues they are never waived.
Also learn your particular markets expectations and or nuances. In California lenders often have additional overlays which exceed FHA MPR and in my area not one report is getting through if there are no smoke & carbon monoxide detectors and the hot water heater is not double safety strapped. In another State maybe none of theses things is required. The biggest problem with 4000.1 is it was written for the entire Country and buyer or market participant issues in California are not the same as in many other States and also inspection criteria may be different.
Example: In SO CA I have never seen a roof covered with snow , so how would I do a visual inspection from the ground as required by 4000.1 ? What if that mountain man has a wood burning stove - Do I tell him to fire up that bad-boy and prove it works ? Anyway just use common sense
Haven't been on FHA list for years, but in the early years FHA taught classes (generally their staff review appraisers). Loved those classes. The Arkansas HUD office in Little Rock had a guy named Johnny and everyone loved his talks because he had such a good sense of humor. When I started back in the mid 90s they said that they gave any new appraiser a review on their first report. The reviewers said they averaged about 1 in 10 appraisals being reviewed (at that time.) Only the worst were considered for feedback. But they would also nail anything resembling fraud. One guy lived in E. Arkansas but did a report in the town near me. The pictures were awful, being distant, a sort of speck in a field or some such. So they required he get new photos. Well...you can guess the rest. The "photos" were local to E. Arkansas and the reviewers suspected so, so they drove to NW Arkansas and found the comps. No picture matched. That guy got to stand before the state board over it.
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