FHA 2055

[Jim Kliegl]

As I'm sure most/all of you know, as part of the FHASecure program, second FHA exterior only appraisals are being required under certain conditions:

• The loan amount, excluding the upfront mortgage insurance premium, will exceed $417,000, and
• The LTV , excluding upfront MIP, equals or exceeds 95%, and
• The property is determined as being in a declining market


Anyway.....I've just received my first 2055 request for FHA. I've received a copy of the first page of the prior report (no value, I didn't want to see it...as I don't want to review the prior report and/or be influenced by a prior value), as well as subject photos and sketch. My thinking is, that I can verify interior characteristics, room count and condition of property with this information and disclose this as a data source within report/scope of work. My concerns are, is this violating any confidentiality issues for the homeowner?

Anyone else dealing with the exterior only FHA reports? Curious if use of a report performed by another is a credible/legal data source?

 

[Don Clark]

As I'm sure most/all of you know, as part of the FHASecure program, second FHA exterior only appraisals are being required under certain conditions:

• The loan amount, excluding the upfront mortgage insurance premium, will exceed $417,000, and
• The LTV , excluding upfront MIP, equals or exceeds 95%, and
• The property is determined as being in a declining market


Anyway.....I've just received my first 2055 request for FHA. I've received a copy of the first page of the prior report (no value, I didn't want to see it...as I don't want to review the prior report and/or be influenced by a prior value), as well as subject photos and sketch. My thinking is, that I can verify interior characteristics, room count and condition of property with this information and disclose this as a data source within report/scope of work. My concerns are, is this violating any confidentiality issues for the homeowner?

Anyone else dealing with the exterior only FHA reports? Curious if use of a report performed by another is a credible/legal data source?

It is credible within the context of the SOW if you identify it as your source and make the extraordinary assumption that given no evidence to the contrary, you assume, for the sake of the type of report, that it is acceptable. This is done all the time when doing STD-3 review work. You are not violating confidentiality as the homeowner is not your client. If there were any perceived violations of confidentiality they would rest with whomever gave you the information.

 

[Financially Feasible]

It is credible within the context of the SOW if you identify it as your source and make the extraordinary assumption that given no evidence to the contrary, you assume, for the sake of the type of report, that it is acceptable. This is done all the time when doing STD-3 review work. You are not violating confidentiality as the homeowner is not your client. If there were any perceived violations of confidentiality they would rest with whomever gave you the information.

Don, you're a busy man today. I have seen you share your superior knowledge in many posts.

 

[ZZGAMAZZ]

I'm curious: Will the 2nd appraisal include the FHA case#? Will all follow-up FHA assignments be exterior only?

 

[Jim Kliegl]

Don: Thanks a lot. That's exactly what I was thinking.

ZZ: Same case number as original report is used. My understanding is that SFR's require an exterior only inspection. Condo's and 2-4 units require full interior/exterior.

 

[ZZGAMAZZ]

JIM: The 2nd appraisal appears to be similar to an assignment for a purchase without the purchase price being known. It should be an interesting new paradigm of sorts... Thanks for the info.

 

[RSW]

I completed a back up FHA appraisal a few weeks ago. It was also a 1004. I had a case #.

 

[Mike Boyd]

I just completed one. It is exterior only....why would you need data from another report?

I suppose it would be OK if you state that is your data source......but I would not do it unless there is no source for square footage, room count, etc.