• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Conventional to FHA

Status
Not open for further replies.

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
Hi, I just completed and submitted a conventional appraisal last week to a mortgage broker. The broker just emailed me a request to place an FHA case number on the report and supplied said FHA case number in his email. I replied that I couldn't comply with the request and that a new appraisal needs to be ordered and engagement letter completed which clearly id's the intended use and users of the appraisal. I did the inspection last week and as I always do, I did an FHA inspection. There were no repair issues what so ever. Do I need to do a new inspection/appraisal with a new effective date or can I disclose in the body of the appraisal report that the appraisal inspection took place on 2/5/2008 and on 2/12/2008 the appraiser was provided with an FHA case number and add the number and HUD/FHA user to the report?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
You're adding an intended user and certifying to an FHA scope of work.

Everyone will argue yada, yada, yada, but I don't think it makes much difference in the end. I think I would just carefully go back over my field notes and make sure everything was actually covered. Did you inspect the attic and crawlspace and take pictures? Did you look for slush pits? If not, I would schedule a new inspection.

Then again, it's completly reasonable and probably expected that you will have to reinspect the property and start over. Any legitimately approved FHA outfit will understand this and might be concerned if you don't. If they get mad, they may not be an experienced, approved FHA outfit.
 
Last edited:

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
I agree, the only thing I don't have are photos of the attic; but they were inspected. I am going to mandate a new inspection and that no FHA case number will be added until then. I was just wondering if there was a FHA guideline regarding this. Thanks for the feedback.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Good deal. If nothing else, you'll sleep better that night.
 

Tom Woolford

Elite Member
Gold Supporting Member
Joined
Nov 20, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I had one similar last week. Treated it as a new assignment, reinspected to update the effective date, and discounted the fee. Everyone was happy.
 

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
Tom I agree and thats my plan. All I have to do is talk the mortgage broker into believing that is what is necessary and talk the owner into more $$$. Simple enough!
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
I agree, the only thing I don't have are photos of the attic; but they were inspected. I am going to mandate a new inspection and that no FHA case number will be added until then. I was just wondering if there was a FHA guideline regarding this. Thanks for the feedback.

Ctag,

This is not just an FHA issue. Under USPAP you are not allowed to send a appraisal report out the door, and then later, retroactively, add a new intended user. That, my friend, is a USPAP violation. After that, try reading the paragraph right before the SOW on the 03/2005 Fannie forms. Second paragraph, second sentence. Then go ahead and modify, add, or delete, an intended use and user at your own risk.

Webbed.
 
Last edited:

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
thank you for the info. i have already told my client no and sited the violations including the USPAP guideline. just one question, can the scope of work and intended users be changed as agreed by the appraiser and client after the order is received, after the inspection has been completed but before the appraisal report is released. thanks for the input.
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
thank you for the info. i have already told my client no and sited the violations including the USPAP guideline. just one question, can the scope of work and intended users be changed as agreed by the appraiser and client after the order is received, after the inspection has been completed but before the appraisal report is released. thanks for the input.

Ctag,

Technically, you are bound under USPAP to identify your client and all intended users at the time of engagement. Without doing so, there is no way you can properly advise about, and agree to, a SOW with your client. However, there are many good legitimate reasons why a SOW has to be revised prior to the completion of an assignment. So I have to say the answer is "it depends." But I believe in how you mean the question I would say "yes." ... A SOW could need to be altered and different intended users may be needed. We are not that inflexible!

It is the completion of the first assignment and someone coming back a couple of weeks later (or days) and asking for it to be magically altered, as if the first assignment never happened, that we have issues. And business ones as well! It's like telling a doctor you could not use the appointment you paid for two weeks ago for being ill as you got better the next day, so can you now use that same appointment, without paying for another one, because now you have a hang nail you need taken care of.... LOL.

Webbed.
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks