FHA and completing the assignment

[TJSum]

FHA does not stipulate an "as is" only SOW. Period. No ifs, ands or buts. FHA has requirements that MUST be followed. And these requirements involve the subject property conforming to their set standards. A lender demanding "as is" only reports is not an option !!! The lender can not undercut FHA requirements. Not sure how else to say it to clarify. If you can not educate the lender, call HUD and let them know, they will be happy to educate the lender and may wish to review any FHA appraisals completed with this policy.

 

[frozone]

Thanks TJ...that does clarify it.

 

[Greg Bell]

Citing MPR items makes that appraisal "subject to" automatically.MPR items must be repaired or no FHA insurance is possible.

 

[Lycabull]

FHA

Sebastian:

Heed Mr. Boyd's good advice. "Call your HOC and discuss this."

 

[frozone]

Just an update on this situation. Explained to them that I looked to multiple sources(including HOC) and each has confirmed that the assignment must be "subject to" repairs being completed. The repairs extend to pealing exterior paint and chipped/pealing interior paint on a 1920's home.
I was asked if I could replace the pictures and "fix" the appraisal if the homeowner remedies the situation. I explained that when the repairs are completed I can reinspect the property and complete the 92051 form. Not change the original report!! They said that with the 200+ appraisers they work with no one was ever so by the guidelines and unwilling to work with them to get it done as an "as is" appraisal. They said there is no way they can use a "subject to" report.
I dont get it. Why not just do it the right way? Are they just full of BS about having all other appraisers bend to their will? Or am I missing something and I'm in the wrong? Whats the problem with "subject to" and then getting a 92051. Someone please enlighten me!! m2:

 

[TJSum]

It sounds like this is a lender just venturing into the FHA field. Seriously, I would let FHA/HUD know all of this, it sounds like you did your best to educate them and now have lost the client because you refuse not to follow FHA SOW. There are some FHA insiders who monitor the forum, hopefully this thread will catch their eye.

 

[TC]

I agree with TJ, your client doesn't know jack. Any lender familiar with FHA knows the drill and doesn't object when things need to be repaired, it comes with the territory. Stick to your guns.

TC

(by the way, it's pEEling. Just can't help myself)

 

[3 Putt]

It wasn't that long ago that every FHA appraisal was completed "subject to". Every report was subject to the items noted on the VC sheet. ( Valuation Conditions)

As for all appraisers doing them "as is". Sounds like a line of BS to try and get you to change the report.

 

[timd354]

They are obviously a bunch of idiots, because it is really no problem for the lender to close the loan and have it guaanteed by FHA after the required repairs have been completed and the 92051 has been completed showing the repairs have been completed.

These people are so dumb and so crooked that they want to cheat and commit loan fraud when they don't even have to in order to get the loan done.

 

[Webbed Feet]

So basically everyone here so far says that if the only issue is "as is" vs "subject to" then it is the responsibility of the appraiser to complete the assignment no matter what. Even if the lender states they only accept "as is" assignments and want you to stop 1/2 way through and not complete "subject to" assignments? That is what Im mainly trying to get at.

Mr. Tyski,

You file a complaint here...

U.S. Department of Housing and Urban Development
Philadelphia Homeownership Center
The Wanamaker Building
100 Penn Square East
Philadelphia PA 19107-3389
Tel: (800) CALLFHA or (800) 225-5342

Webbed.