Converting from Reverse to Forward FHA

[Steven Bonner]

The lender changing from a reverse mortgage to a forward FHA mortgage and the underwriter is requiring the case number change on the report. Does this case number change constitute a new assignment and new workfile? Or can it be considered a revision. Of course they want the new case number on every page.

 

[CANative]

What's going to change in the appraisal and appraisal report other than the case #? The intended use statement?

 

[hastalavista]

I don't even think the intended use statement changes. :mellow:
Just the case number.

Sounds like a technical issue, unrelated to the assignment.

If the client required a loan# on the appraisal (which some clients do), and that changed, would that constitute a new assignment? I don't think so. This sounds like the same deal.

 

[RSW]

I would contact the HOC, give them both case #'s, and see what they had to say.

 

[CANative]

I don't even think the intended use statement changes. :mellow:
Just the case number.

Sounds like a technical issue, unrelated to the assignment.

If the client required a loan# on the appraisal (which some clients do), and that changed, would that constitute a new assignment? I don't think so. This sounds like the same deal.

I think I used to include that the intended use was underwriting for HECM. It's been a while.

 

[hastalavista]

I think I used to include that the intended use was underwriting for HECM. It's been a while.

You probably went an extra mile. I don't think I identified it like that. Maybe I was wrong?

 

[Steven Bonner]

I would contact the HOC, give them both case #'s, and see what they had to say.

I think you're right. Talking to the HOC is the way to go. I think everyone else is right too. Same lender, same protocol, same comps, value, effective date, and purpose. Sounds like a revision with explanation.

 

[Steven Bonner]

UPDATE

Called the FHA HOC. Was told the new case# denotes a new assignment. The appraisal is good for 120 days so the effective date may remain the same, though the appraiser may choose to reinspect with the new assignment. Of course a new workfile is needed for the new assignment as well as notifying the client a previous appraisal was done.

I also checked with the Appraisal Board. In their opinion the USPAP issue is that changing the case# itself warrants a new assignment. But it is also for a new purpose, a typical FHA insured mortgage vs a Reverse FHA insured mortgage. This also requires it to be a new assignment. Again, the previous appraisal must be noted in the second report.

These changes are often not as simple as they appear.

 

[Don Clark]

UPDATE

Called the FHA HOC. Was told the new case# denotes a new assignment. The appraisal is good for 120 days so the effective date may remain the same, though the appraiser may choose to reinspect with the new assignment. Of course a new workfile is needed for the new assignment as well as notifying the client a previous appraisal was done.

I also checked with the Appraisal Board. In their opinion the USPAP issue is that changing the case# itself warrants a new assignment. But it is also for a new purpose, a typical FHA insured mortgage vs a Reverse FHA insured mortgage. This also requires it to be a new assignment. Again, the previous appraisal must be noted in the second report.

These changes are often not as simple as they appear.

Thank God someone in FHA understands USPAP. I am late to the game having been out of town to the annual conference of NCPAC. So much advice, so little understanding.

Anytime the intended use, the scope of work, and other assignment conditions chages....IT IS A NEW ASSIGNMENT.

What you charge as a fee is up to you. Whether you reinspect or not is up to you.

USPAP 2014-2015.....suggested reading for all concerned.

 

[hastalavista]

I also checked with the Appraisal Board. In their opinion the USPAP issue is that changing the case# itself warrants a new assignment.

I wonder if they would hold that same position if it were a client loan number, and nothing else changed?