FHA Appraiser Notes Items Not Within Appraisal Guidelines

[Ken Masla]

For FHA appraisal, I mention everything I see.

Up to the underwriter/lender to decide.

I wouldn't call out repairs of minimal items, but sometimes I would for blatant safety issues even though there is no specific information on it in the handbook.

I did a house in the hills. There was steep steps. No handrails would've been a blatant safety hazard, but there were rails. At about half way up I tried to balance myself on the handrail and the handrail almost fell off. It was loose.

Would you not call this out on the report? Is there a chance that it could come back to bite the appraiser in the *** later? If there is a slight chance, you should mention it and even maybe call it out for repairs.

 

[Penelope X]

View attachment 30388

Wanted to interject that Fannie Mae's selling guide also requires that a property be "safe, sound, and structurally secure" (B4-1.3-06). Many of HUD guidelines also apply for homes secured using appraisals prepared on Fannie Mae forms. So I'd like to ask; how many appraisers are seeing a lack of repeat business from lenders who balk at an appraisal being made "subject-to" for defective paint surfaces (interior and/or exterior) on homes built prior to 1978 (particularly those built prior to 1960)? I have been asking for inspection by a professional in lead-based paint for years now, and most recently have received questionable requests from the "client" whom I later learned with either the homeowner through the loan officer or the loan officer independently. I have also noticed that the AMC representing the "client" doesn't send me anymore business once I have to appraise one of their pre-1978 properties with defective paint. Anyone else having this issue? Guess Dodd-Frank and appraisal guidelines are at odds once again?

 

[bnmappraisal]

Wanted to interject that Fannie Mae's selling guide also requires that a property be "safe, sound, and structurally secure" (B4-1.3-06). Many of HUD guidelines also apply for homes secured using appraisals prepared on Fannie Mae forms. So I'd like to ask; how many appraisers are seeing a lack of repeat business from lenders who balk at an appraisal being made "subject-to" for defective paint surfaces (interior and/or exterior) on homes built prior to 1978 (particularly those built prior to 1960)? I have been asking for inspection by a professional in lead-based paint for years now, and most recently have received questionable requests from the "client" whom I later learned with either the homeowner through the loan officer or the loan officer independently. I have also noticed that the AMC representing the "client" doesn't send me anymore business once I have to appraise one of their pre-1978 properties with defective paint. Anyone else having this issue? Guess Dodd-Frank and appraisal guidelines are at odds once again?

Many of the homes in my market area are pre 1978 and defective/peeling/chipping paint is one of my biggest "fails" for FHA properties. I just make the report SUBJ TO and move on. I literally just finished up a Final inspect of such a property about an hr ago. House passed FHA except for 6 or 7 areas of peeling paint; all noticeable from the exterior pics.
The client, an AMC, sends me a nice chunk of work; although recently got bought out. But I've done many FHA properties with said deficiency. I don't call for an inspection of the LBP, but do make the reports SUBJ TO the defective area(s) being remedied.

 

[Penelope X]

Many of the homes in my market area are pre 1978 and defective/peeling/chipping paint is one of my biggest "fails" for FHA properties. I just make the report SUBJ TO and move on. I literally just finished up a Final inspect of such a property about an hr ago. House passed FHA except for 6 or 7 areas of peeling paint; all noticeable from the exterior pics.
The client, an AMC, sends me a nice chunk of work; although recently got bought out. But I've done many FHA properties with said deficiency. I don't call for an inspection of the LBP, but do make the reports SUBJ TO the defective area(s) being remedied.

I appreciate your response but, I guess I didn't make myself clear. I'm speaking about conventionally financed assignments, not FHA insured. Sorry about that! FHA is very straight-forward about their requirements but, Fannie's selling guidance is more nebulous in its language. I've just be chewed out (for about the fifth time in the past year similarly) by an investor-owner (you know, the investor that invests in everything but maintenance on their collateral?) that is trying to refinance a home with...well, let's just say "deferred maintenance". According to this investor, NO ONE and I mean NO ONE (Realtor, Lender, other appraisers, etc.) that this investor contacted has ever heard of an appraiser making an appraisal for a Conventionally financed loan "subject to" inspection of deteriorating painted surfaces on a home built prior to 1978. I was gentle in my response to say the least. He just hung up. I've had at least one former client tell me over the phone the reason I haven't received any more orders from them was because of this specific stipulation on one of the orders I did for them. I'm flabbergasted! And, just wanted to put the feelers out there for how many other of my peers has experienced the same.

 

[Penelope X]

I appreciate your response but, I guess I didn't make myself clear. I'm speaking about conventionally financed assignments, not FHA insured. Sorry about that! FHA is very straight-forward about their requirements but, Fannie's selling guidance is more nebulous in its language. I've just be chewed out (for about the fifth time in the past year similarly) by an investor-owner (you know, the investor that invests in everything but maintenance on their collateral?) that is trying to refinance a home with...well, let's just say "deferred maintenance". According to this investor, NO ONE and I mean NO ONE (Realtor, Lender, other appraisers, etc.) that this investor contacted has ever heard of an appraiser making an appraisal for a Conventionally financed loan "subject to" inspection of deteriorating painted surfaces on a home built prior to 1978. I was gentle in my response to say the least. He just hung up. I've had at least one former client tell me over the phone the reason I haven't received any more orders from them was because of this specific stipulation on one of the orders I did for them. I'm flabbergasted! And, just wanted to put the feelers out there for how many other of my peers has experienced the same.

I appreciate your response but, I guess I didn't make myself clear. I'm speaking about conventionally financed assignments, not FHA insured. Sorry about that! FHA is very straight-forward about their requirements but, Fannie's selling guidance is more nebulous in its language. I've just been chewed out (for about the fifth time in the past year similarly) by an investor-owner (you know, the investor that invests in everything but maintenance on their collateral?) that is trying to refinance a home with...well, let's just say "deferred maintenance". According to this investor, NO ONE and I mean NO ONE (Realtor, Lender, other appraisers, etc.) that this investor contacted has ever heard of an appraiser making an appraisal for a Conventionally financed loan "subject to" inspection of deteriorating painted surfaces on a home built prior to 1978. I was gentle in my response to say the least. He just hung up. I've had at least one former client tell me over the phone the reason I haven't received any more orders from them was because of this specific stipulation on one of the orders I did for them. I'm flabbergasted! And, just wanted to put the feelers out there for how many other of my peers has experienced the same.

 

[Vermonter]

I appreciate your response but, I guess I didn't make myself clear. I'm speaking about conventionally financed assignments, not FHA insured. Sorry about that! FHA is very straight-forward about their requirements but, Fannie's selling guidance is more nebulous in its language. I've just been chewed out (for about the fifth time in the past year similarly) by an investor-owner (you know, the investor that invests in everything but maintenance on their collateral?) that is trying to refinance a home with...well, let's just say "deferred maintenance". According to this investor, NO ONE and I mean NO ONE (Realtor, Lender, other appraisers, etc.) that this investor contacted has ever heard of an appraiser making an appraisal for a Conventionally financed loan "subject to" inspection of deteriorating painted surfaces on a home built prior to 1978. I was gentle in my response to say the least. He just hung up. I've had at least one former client tell me over the phone the reason I haven't received any more orders from them was because of this specific stipulation on one of the orders I did for them. I'm flabbergasted! And, just wanted to put the feelers out there for how many other of my peers has experienced the same.

I have 2 local credit unions that require you basically follow 4000.1 for any appraisal assignment. Conventional, HELOC, General Purpose, etc. However this is their interpretation of FNMAs guideline of "safe". Some clients may have a different interpretation.