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FHA Case Number Vs USPAP

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ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
I am looking for some clarification. If an appraiser can and does accept a FHA assignment w/o the FHA case number as is authorized by HUD to "not delay" the inspection based on the 1996 mortgage letter, but appendix D states "the appraiser may not transmit the appraisal to the lender w/o the FHA case number...", is the appraiser in violation of USPAP for accepting the FHA assignment knowing the SOW was for an FHA job but not having enough data to complete and communicate the report if the lender fails to give an FHA case number??? What is the appraiser to do if he never get the case number and what is the appraiser liability for accepting the job w/o the number? I think USPAP will supercede any FHA/HUD policy and the appraisers will be in trouble for accepting the job and never communicating it.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I think FHA trumps USPAP in that case. Nag the DEU for a case number. Report it to your local HOC. I would not send the report.
 

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
What happens to the appraiser if

he never delivers the report and a complaint is made against the apprasier to HUD and to the Dept. of State for accepting a job and a fee but never communicating it? Do you think the DOS investigators will side with the appraiser siting the HUD policy or slam the appraiser for accepting an assignment based on a SOW for an FHA appraisal but not having the data to complete the job and never communicating the report thereby violating USPAP?
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I'd refer to page D-7 of Appendix D, Contractual Responsibility of Appraisers.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
he never delivers the report and a complaint is made against the apprasier to HUD and to the Dept. of State for accepting a job and a fee but never communicating it? Do you think the DOS investigators will side with the appraiser siting the HUD policy or slam the appraiser for accepting an assignment based on a SOW for an FHA appraisal but not having the data to complete the job and never communicating the report thereby violating USPAP?

Maybe I am naive but I think they would side with the appraiser. I can think of many reasons why. However, after receiving the assignment (and fee?) the DEU should immediately be notified that work on the appraisal report will not commence until the case # has been received by YOU. Or, at least not DELIVERED until it has been received. This type of communication should be made in writing by the appraiser and cc'd to FHA.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
I was taught, (years ago by FHA staff)that FHA appraisals were made to determine the eligibility of the property for FHA insurance not to satisfy the needs of the lender. I can see a potential dispute on this issue as that would make FHA the client rather the lender. My answer would be that the needs of the lender are to get it insured by FHA and that FHA is an intended user of the report but not the primary client.
 

ctag1003

Thread Starter
Sophomore Member
Joined
Jan 16, 2008
Professional Status
Certified Residential Appraiser
State
New York
D-7 states that FHA guidelines are in addition to state regulations. Is the appraiser in violation of USPAP for accepting the assignement w/o the FHA case number? Is the appraiser is violation of USPAP for never delivering the appraisal report because the FHA case number was never received?
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
ctag,

I'm not sure USPAP would enter into it per se.

I guess a case could be made that the appraiser failed to ascertain the clients needs at the time of accepting the assignment.

But in any case, you accepted an assignment with the condition that it would meet FHA's requirements. FHA requires that the case number be on the report. If your scope of work says you met a particular set of guidelines (in this case, FHA) then you can't mislead by not meeting those guidelines. I'd say USPAP would indicate that you cannot send the report.

This is really more of a practical business matter. If you accept an FHA assignment without a case number you are setting yourself up for the possibility that you will never get one. Just don't do it.

Once done, the potential for unresolved misery is great. If you have already done it and have this quandry right now, you should call your HOC and report it. Maybe they can help resolve it with the client.
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
1. FHA is an intended user.
2. FHA requires inclusion of the FHA Case Number at a specific location on the appraisal report. This is an appraisal assignment condition.
3. FHA also states that a FHA appraisal cannot be transmitted to the lender without a case number. Another contractural requirement mandated by FHA.

Your issue is with the lender that did not provide the FHA case number, not USPAP. I'd consider contacting your local HOC as suggested earlier by Mike.
 

Greg Bell

Senior Member
Joined
Jul 7, 2006
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Louisiana
FHA is government entity and it doesn't matter what USPAP states if FHA is in conflict.Government overrides USPAP.Sorry USPAP gurus.P.S. You should have the FHA case number BEFORE you inspect of you may just get the
crummy trip fee while the lender fishes..
 
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