Switching from FHA to conventional

[Dale Floyd]

Contacting FHA would be a breach of the confidentiality provisions of USPAP.

FHA is an insurer of the mortgage, and not the client of the appraiser. FHA is an investment tool of the lender for mortgage purposes - nothing more. A mortgage either meets the requirements of FHA, or ultimately doesn’t. If it doesn’t, perhaps the lender finds different mortgage products for the borrower, requiring the documentations, including the appraisal, to contain the language required for that product, insurer, investor, or guarantor. That’s always the culprit of these requests.

Until the mortgage is closed, neither FHA or anybody outside the client, has any skin in the game.

That would be like calling the first title company as a courtesy to tell them the lender is using a different title company in the end. Not wise.

 

[Zoe]

Contacting FHA would be a breach of the confidentiality provisions of USPAP.

FHA is an insurer of the mortgage, and not the client of the appraiser. FHA is an investment tool of the lender for mortgage purposes - nothing more. A mortgage either meets the requirements of FHA, or ultimately doesn’t. If it doesn’t, perhaps the lender finds different mortgage products for the borrower, requiring the documentations, including the appraisal, to contain the language required for that product, insurer, investor, or guarantor. That’s always the culprit of these requests.

Until the mortgage is closed, neither FHA or anybody outside the client, has any skin in the game.

That would be like calling the first title company as a courtesy to tell them the lender is using a different title company in the end. Not wise.

Doesn't matter to me. Your missing the point to my client. My client has suddenly shifted liabilities on them vs FHA. I set SOW.

Let my client file a complaint on me for contacting FHA. Let's see how far that flies.

New assignment to me period. Go hire someone else than me. Fine with me.

 

[Zoe]

My client wont' bite that bullet if I contact FHA. My client is smarter than that. They won't file complaint on me either. I will enjoy the ride. LOL

I set SOW. This is my fee. New assignment.

 

[sputnam]

Your missing my points on how liability is shifting in the new assignment request. Don't worry about whether you see FHA as a client or not. It is a new assignmen

Here is a clue. If borrower went FHA and decided to go conventional?

Can lender just shift the appraisal?

See?

Throw that basketball back in client's court. New assignment is cleanest way. CYA (cover your a**}.

I know exactly what USPAP says on who is responsible for SOW.

Where is my honey Joan Trice when I need her?

You are so far off the topic that your posts should be in a separate thread. Liability isn't the issue. What Lenders and GSEs can and can't do is not binding on appraisers nor is it the appraiser's responsibility.

 

[Zoe]

100% new assignment.

New work file, new inspection/new effective date (wonder if the house burned down....). If you use the OLD date, that would be a retrospective, and the client doesn't want that.

CLONE the existing report, change dates, intended user(s), change photos, check sales (from old effective date to new effective date, maybe a pending closed), sign with today's date and submit.

Charge what YOU want to charge for your time and effort, whatever that is worth to YOU.

Yes

 

[sputnam]

Yes

Again... Disagree.

 

[Tom D]

Wow, some really dumb thoughts here. New assignment of the same house 2 weeks later. So what has changed on the appraisal besides the new date and i did a previous appraisal on it. My clients are direct lenders, forever. At most i would take new pictures of the outside. If you want to go back inside, that's your decision. And i would do it at a discount since it's mostly cloned. 1/2 price discount, and maybe get a new good client.

Some of you dopes don't understand lending. I guarantee the the lender never sent that FHA appraisal thru the HUD portal. So HUD has never seen it. As soon as the lender saw the value they decided to go conv. i wonder if they are going to change to a new higher sale price now.

 

[J Grant]

Wow, some really dumb thoughts here. New assignment of the same house 2 weeks later. So what has changed on the appraisal besides the new date and i did a previous appraisal on it. My clients are direct lenders, forever. At most i would take new pictures of the outside. If you want to go back inside, that's your decision. And i would do it at a discount since it's mostly cloned. 1/2 price discount, and maybe get a new good client.

Some of you dopes don't understand lending. I guarantee the the lender never sent that FHA appraisal thru the HUD portal. So HUD has never seen it. As soon as the lender saw the value they decided to go conv. i wonder if they are going to change to a new higher sale price now.

How do you KNOW the client never sent the FHA appraisal in to HUD? You are just assuming things. We do not know why the loan is being switched from FHA. It could be the FHA appraisal or a home inspection revealed something about the property that got it rejected for FHA. Or something about the borrower. Lenders are under no obligation to share that with us and usually don;t.

So now you have what I assume is still a purchase appraisal, I assume for same price? Using a prior interior and exterior inspection done 2 weeks ago for an FHA loan. What is the point of going out again to take a new exterior photo? The appraiser needs to ask the client if the 2-week-old inspection can still be the effective inspection date. If so, then 2 weeks ago is the effective date and disclose a prior service and remove the FHA guarantee.

However, if the client will not accept a 2-week-old prior effective date inspection and needs a new one, then the appraiser has to go back to the property inside with a new effective date and a new assignment.

Fees are the OP decision.. But what I can not understand is an appraiser's eagerness to save the borrower a few bucks and risk getting sanctioned for it. IF this is the way they think they can snag a new client, think again. The client will be the first one to turn the appraiser in to the board if there is an issue.

 

[RSW]

you didn't change it from FHA to conventional. Not your problem. Don't let lender make their problem your problem. New assignment keeps you clean.

I won't swear FHA would not give permission to switch it to another lender if the borrower wanted to change lenders, but switching from FHA to conventional is a new assignment. FHA can switch it and you not change a thing in the original appraisal report. FHA is still your client. They have more power than you.

FHA is not the client. FHA is an intended user. The Lender is the client.

 

[Zoe]

FHA is not the client. FHA is an intended user. The Lender is the client.

I understand Sir. Makes no difference on my decision for new assignment and me set SOW.

I have got the whole nine yards. I understand retrospective, client and prospective and concurrent.

It is new assignment to me. Period.

The lender has other options than me. That is fine with me.