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FHA Appraisal Update

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carlos alvarez

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Sophomore Member
Joined
May 8, 2006
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Certified Residential Appraiser
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Florida
. Can somebody advice me in this case. I appraised a property back on 5/13/2008. Now the lender asked for an appraisal update, I completed the recertification stating that the property has declined in value. I made my comments on why the property has decreased in value but did not give a number on how much the decrease was. The lender later called and asked to give her a value on what the property value is, I stated that in order for me to give a value she would need a new appraisal. Her answer was that all the appraiser’s she deal with do this, I told her I wouldn’t your advice is appreciated
 

Mike Boyd

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Jan 18, 2002
Professional Status
Retired Appraiser
State
California
You should advise her that 6 months is too far back for a simple update on the 1004D. You need to reinspect, get new comps and perform a new market analysis based on the last 6 months as well as current listings and pendings.
 

Don Clark

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Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
. Can somebody advice me in this case. I appraised a property back on 5/13/2008. Now the lender asked for an appraisal update, I completed the recertification stating that the property has declined in value. I made my comments on why the property has decreased in value but did not give a number on how much the decrease was. The lender later called and asked to give her a value on what the property value is, I stated that in order for me to give a value she would need a new appraisal. Her answer was that all the appraiser’s she deal with do this, I told her I wouldn’t your advice is appreciated

That's the oldest statement in th book. It is a new assignment per USPAP, and since it is over 6 months old, will be for FHA as well.
 

RSW

Elite Member
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Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
The date of the original appraisal was 5/13/2008. That makes the appraisal less than six months old even from today's date. But, if you wait a few days then they can order a new appraisal and a new FHA case # can be assigned. Take the advice of the other posts listed above. It sounds like the lender is wanting a new appraisal but doesn't want to pay for one.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
The date of the original appraisal was 5/13/2008. That makes the appraisal less than six months old even from today's date. But, if you wait a few days then they can order a new appraisal and a new FHA case # can be assigned. Take the advice of the other posts listed above. It sounds like the lender is wanting a new appraisal but doesn't want to pay for one.

By the time you completed the report and sent it in, it gets processed and reviewed by underwriting, it would be so close to 6 months that FHA would toss it when it came to getting the loan insured. It's not a minute to minute concept. The idea is that markets change in +-6 month cycles. In a volatile market that most of us are experiencing, it might be changing on a monthly basis. As the appraiser, YOU control the decision on whether or not a new appraisal report is needed. Make sure you address exactly WHAT has changed.
 

carlos alvarez

Thread Starter
Sophomore Member
Joined
May 8, 2006
Professional Status
Certified Residential Appraiser
State
Florida
By the time you completed the report and sent it in, it gets processed and reviewed by underwriting, it would be so close to 6 months that FHA would toss it when it came to getting the loan insured. It's not a minute to minute concept. The idea is that markets change in +-6 month cycles. In a volatile market that most of us are experiencing, it might be changing on a monthly basis. As the appraiser, YOU control the decision on whether or not a new appraisal report is needed. Make sure you address exactly WHAT has changed.

Thank you Mike I think you hit it right on the nail!!!
 

Craig Farr

Junior Member
Joined
Sep 26, 2004
Professional Status
Certified Residential Appraiser
State
Arizona
When you told them the property's value had declined YOU DID AN APPRAISAL! So we assume you have comps and analysis and cert etc in a permanent file and will archive it for 5 years????
 

sbb04

Sophomore Member
Joined
Jan 29, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
good point

I think you can do an updated appraisal with new comps (to justify an increasing or decreasing market) and the same effective date but I would charge them appropriately.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I'm only going by FHA protocal concerning appraisals and the 6 month period. It is not up to the appraiser but it would be up to the FHA to make the decision. They would most likely want a new appraisal or would accept a 1004D similar to what they are requring on appraisals for the H4H program.
 

Mr Rex

Elite Member
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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I think you can do an updated appraisal with new comps (to justify an increasing or decreasing market) and the same effective date but I would charge them appropriately.

How do you update an appraisal with new comps with the same effective date?
 
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