FHA appraisal without a case number?

[JoeB]

I have been asked to perform an FHA appraisal without a case number? I asked where and when I would get the case number and the reply stated that there would be no case number for this assignment? Move forward as if it were an FHA appraisal. It is an all cash purchase and it is also a short sale?
Where is the documentation that either allows this or not?
Thank you
......
The last email stated they wanted the assignment to performed by an FHA appraiser?
I would still like to know the facts about the case number?

 

[Terrel L. Shields]

If a cash deal then they are apparently asking you report it like an FHA appraisal but I would state in the report that there is no case number and that his report is NOT for FHA and FHA is NOT an intended user as per the engagement letter.

So if the engagement letter states contrary, then resolve that before moving forward. If it IS FHA it needs a case number. The old standard was we didn't move out of our tracks before the case number was provided. If it is not FHA, then you cannot state that it is.

 

[CANative]

I think they may be planning on a conventional loan but depending on the property, the value and the credit may have to go FHA. So they want the scope of work to be like FHA in case they want to change the loan. In which case they will ask you to "convert" it. This means you can keep the same effective date and won't have to reinspect.

 

[Amy Perkins]

"requires that the effective date of the appraisal be after the case number assignment
date except in certain limited circumstances"

ML2010-15 (Mortgage Letter from U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT)

 

[CANative]

Appraiser/Appraisal Eligibility
Mortgagees are reminded to ensure that the FHA Roster appraiser selected to perform an appraisal is listed as being active on the FHA Appraiser Roster at the time of selection.

FHA Roster appraisers are reminded that appraisals cannot be performed for purposes of FHA insured financing unless the appraiser is listed as being active on the FHA Appraiser Roster during the time period in which the appraisal is performed.

Mortgages predicated upon appraisals that are performed by appraisers who are not current on the FHA Appraiser Roster at the time of the effective date of the appraisal will not be insured.

The effective date of the appraisal cannot be before the case number assignment date unless the lender certifies, via the certification field in the Appraiser Logging Screen in FHA Connection, the appraisal was ordered for conventional lending, HUD REO or government guaranteed loan purposes but was performed by a FHA Roster Appraiser and is being converted to a FHA-insured mortgage. The mortgagee must retain documentation in the case binder substantiating conversion of the mortgage to FHA.

If the appraisal was ordered for conventional lending or government guaranteed loan purposes but was performed by a FHA Roster Appraiser, the mortgagee must ensure that the appraisal was performed in accordance with FHA appraisal reporting requirements as detailed in Handbook 4150.2, CHG-1, Valuation Analysis for Home Mortgage Insurance for Single Family One – to Four – Unit Dwellings, and subsequent mortgagee letters. Ensuring compliance with this requirement may entail a re-inspection of the property by the appraiser.

 

[JoeB]

Thanks for the info!

 

[Peter LeQuire]

Appraiser/Appraisal Eligibility
Mortgagees are reminded to ensure that the FHA Roster appraiser selected to perform an appraisal is listed as being active on the FHA Appraiser Roster at the time of selection.

FHA Roster appraisers are reminded that appraisals cannot be performed for purposes of FHA insured financing unless the appraiser is listed as being active on the FHA Appraiser Roster during the time period in which the appraisal is performed.

Mortgages predicated upon appraisals that are performed by appraisers who are not current on the FHA Appraiser Roster at the time of the effective date of the appraisal will not be insured.

The effective date of the appraisal cannot be before the case number assignment date unless the lender certifies, via the certification field in the Appraiser Logging Screen in FHA Connection, the appraisal was ordered for conventional lending, HUD REO or government guaranteed loan purposes but was performed by a FHA Roster Appraiser and is being converted to a FHA-insured mortgage. The mortgagee must retain documentation in the case binder substantiating conversion of the mortgage to FHA.

If the appraisal was ordered for conventional lending or government guaranteed loan purposes but was performed by a FHA Roster Appraiser, the mortgagee must ensure that the appraisal was performed in accordance with FHA appraisal reporting requirements as detailed in Handbook 4150.2, CHG-1, Valuation Analysis for Home Mortgage Insurance for Single Family One – to Four – Unit Dwellings, and subsequent mortgagee letters. Ensuring compliance with this requirement may entail a re-inspection of the property by the appraiser.

Boom!!!!!!!

 

[bnmappraisal]

Sadly many AMC's and some lenders (from my personal experience) have been requiring basically an FHA inspection/appraisal, however only want to "pay" for a conventional inspection/appraisal. Although they don't require all the minimum FHA comments, the ones they do require are pretty darn close! It's really annoying, imo!

 

[realbiz]

If a cash deal then they are apparently asking you report it like an FHA appraisal but I would state in the report that there is no case number and that his report is NOT for FHA and FHA is NOT an intended user as per the engagement letter.

So if the engagement letter states contrary, then resolve that before moving forward. If it IS FHA it needs a case number. The old standard was we didn't move out of our tracks before the case number was provided. If it is not FHA, then you cannot state that it is.

Agreed, I would clearly disclose. I have reviewed a report like this being sent into FHA without a case number (appraiser wasn't aware).

 

[Lee Lansford]

I have been asked to perform an FHA appraisal without a case number? I asked where and when I would get the case number and the reply stated that there would be no case number for this assignment? Move forward as if it were an FHA appraisal. It is an all cash purchase and it is also a short sale?
Where is the documentation that either allows this or not?
Thank you
......
The last email stated they wanted the assignment to performed by an FHA appraiser?
I would still like to know the facts about the case number?

Clarify with the client what you are being asked to do.

You can conduct an appraisal with assignment conditions that are the the same as the requirements of FHA.

However, inform the client that FHA/HUD is not an additional Intended User and later you cannot add (to this assignment) as an intended user.