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FHA case numbers

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NJ Valuator

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Feb 23, 2003
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New Jersey
Are lenders allowed to transfer FHA case numbers after the appraisal was already completed. For example, an appraisal was completed for a bank with a certain case number. The deal fell thru and now a new borrower with a new bank is purchasing the same property. Can the FHA case numbers be the same?
 

Riick

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Delaware
yes -- 6 MONTHS
 

hglenbetts

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Dec 3, 2007
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Michigan
Are lenders allowed to transfer FHA case numbers after the appraisal was already completed. For example, an appraisal was completed for a bank with a certain case number. The deal fell thru and now a new borrower with a new bank is purchasing the same property. Can the FHA case numbers be the same?
The case number is the same, because the report is the same. That appraisal will stay with the property,(up to 6 months) no matter who is the purchaser or who is the lender, as long if it's FHA financing.
 

CANative

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California
Refer to Chapter 4 of HUD Handbook 4000.2

CHAPTER 4

CANCELLING CASES AND TRANSFERRING CASE NUMBERS

4-1 CANCELLING CASES. The lender must notify the appropriate HOC via FHA Connection, or its functional equivalent, to close outstanding files and cancel the FHA case number if the origination and closing of a loan will not be completed or if FHA mortgage insurance endorsement will not be sought.

4-2 TRANSFERS OF CASE NUMBERS BETWEEN LENDERS.

A. New Lender. Lenders are expected to cooperate in the transfer of case numbers. At the request of a borrower, the case number is to be assigned to the new lender using the Case Transfer function in FHA Connection. The transferring lender is not entitled to a fee for the transfer of a streamline refinance case number, regardless of the stage of processing the loan is in. The transferring lender may be entitled to any lock-in fee collected from the borrower at the time of application. The transferring lender is required to provide the new lender with the appraisal but is not required to provide any processing documents. If processing documents are transferred, the fee for providing these documents is to be negotiated between the lenders. No separate charge to the borrower is authorized for this transfer.

B. New Borrower Using an Existing Appraisal. If the transfer is made for a new borrower to use an existing appraisal, the new lender is to collect an appraisal fee from the new borrower. The appraisal fee is sent to the original lender who, in turn, is to refund the fee to the original borrower.

C. Rejected Loan. If the transfer involves a rejected loan, the original lender must complete the Mortgage Credit Reject function in FHA Connection prior to transferring the loan.

D. Master Appraisal Report (MAR), Form HUD-91322.1. In the case of a MAR, the transferring lender is only entitled to a pro-rata share of the cost of the MAR. For example, if the MAR is for 100 units and cost $10,000, the new lender would pay the transferring lender $100. While a lender may have provided resources to obtain the MAR in anticipation of capturing most – if not all – of the individual mortgage loans, it may not deny an appraisal assignment request to a borrower who wishes to use an alternative mortgage lender.
 

Mike Kennedy

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New York

Change Date May 10, 2009 scroll to page 90

4155.2 1.D.3.a Requesting an FHA Case Number

Lenders must request and obtain an FHA case number using the FHA Connection or its functional equivalent.
The lender must also use the FHA Connection to transmit any additional FHA information on a particular property.

In order for a case number to be established for a new FHA case requiring an appraisal, the FHA-approved appraiser selected to perform the property appraisal must be identified. FHA-approved appraiser information, including license numbers can be requested before case number assignment, using the Appraiser Lookup function. Later, if the actual appraiser differs from the assigned appraiser, use the Appraiser Lookup function again to look up the actual information necessary to continue processing the case. If necessary, the new appraiser can be assigned to the case using the Appraiser Reassignment function.
Shortcut to: http://www.HUD.gov/offices/hsg/sfh/f17c/f17appr_xmlhlp.cfm

LENDERS TRANSFERRING CASE NUMBERS - SCROLL DOWN TO PG 92
Change Date May 10, 2009 4155.2 1.D.5.a

Requirements for the Transferring Lender
Transferring lenders are expected to cooperate in the transfer of case numbers. At a borrower’s request, the lender must assign the case number to the new lender using the Case Transfer function in the FHA Connection. Additionally, the transferring lender
is not entitled to a fee for the transfer of a streamline refinance case number, regardless of the current stage of processing for the loan

may be entitled to any lock-in fee collected from a borrower at the time of application

is required to provide the new lender with the appraisal, but is not required to provide any processing documents.
Note
: If processing documents are provided, the lender
must negotiate the fee with the new lender, and
is not authorized to charge the borrower a separate fee for the transfer of the processing documents.
Reference
: For more information on the FHA Connection, see HUD 4155.2 1.D.2.




SCROLL TO PAGES 83-93 NEW PROCESS FHA
 
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NJ Valuator

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Feb 23, 2003
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Certified Residential Appraiser
State
New Jersey
Forgive me for being redundant. I just want to make sure that I am reading this right to ease my paranoia.

What I am understanding is that even though I am completing a NEW APPRAISAL for a NEW LENDER and a NEW BORROWER the FHA case number can remain the same as the one used on the OLD APPRAISAL for the OLD LENDER and the OLD BORROWER on the same property? This is because the case number remains with the property address for a period of 6 months regardless of how many times it is transferred between lenders and borrowers. Am I comprehending this correctly?

Thanks for everyones help.
 

Atlanta CG

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
We had a house sell via FHA and the listing agent said it was appraised previously for a different buyer. New appraiser. Called FHA, they said the first appraiser was selected but the lender never reported in the value. Therefore the case number was still outstanding and another appraiser could be assigned and that would be the only one on record. So it is up to the lender to report in.
 

DianaOKC

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Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Oklahoma
even with a new borrower wouldn't the new lender still use the existing appraisal with the existing case #? the appraisal and case # follow the property not the borrower right? the original appraiser does nothing, can not change the original appraisal but can only add additional information that comes up after the fact. the page 1 can never be changed?
 

Ms. Janet

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Oct 27, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Forgive me for being redundant. I just want to make sure that I am reading this right to ease my paranoia.

What I am understanding is that even though I am completing a NEW APPRAISAL for a NEW LENDER and a NEW BORROWER the FHA case number can remain the same as the one used on the OLD APPRAISAL for the OLD LENDER and the OLD BORROWER on the same property? This is because the case number remains with the property address for a period of 6 months regardless of how many times it is transferred between lenders and borrowers. Am I comprehending this correctly?

Thanks for everyones help.
Frank,

Case Number is the same, but remember, As a new assignment for a HUD transferred loan, the ONLY changes you are permitted to make to the appraisal report are the Borrowers name and the Lender name. Do not make ANY OTHER changes or revisions to the appraisal report or the value for a transfer. Nothing else, not the effective date, not the contract price, nada.

Read HUD Handbook 4000.2 REV-3 (Section 2-9)



(I'm assuming you did the initial report for the original Borrower and Lender.)
 
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DianaOKC

Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Oklahoma
Please go to FHAoutreach.gov go to FAQs there is a question just like yours that states "
When a case number is transferred with a completed appraisal, may a new appraisal be requested?
Answer
Under the Uniform Standards of Professional Appraisal Practice (USPAP), a lender may send an existing appraisal to another lender, and the receiving new lender may accept an appraisal prepared for another lender/client. However, the new lender may not ask the appraiser to "transfer" the appraisal, i.e., readdress the name of the client or lender on the appraisal itself. If the appraiser is requested to change the name of the lender/client on the appraisal, the appraiser would be required to prepare another appraisal to comply with USPAP. FHA does not require the appraiser to transfer (as defined by USPAP) the appraisal, change the name of the client/ lender, or the name of the borrower on a FHA appraisal. When a case number is transferred, and the appraisal has been completed and is still effective, the new lender must use the existing FHA appraisal and may not request a new appraisal or ask the appraiser to "transfer" the appraisal by changing the name of the lender/client or borrower on the appraisal.

HUD Handbook 4000.2 REV-3 (Section 2-9)


Reference
HUD Handbook 4000.2 REV-3 (Section 2-9)

Referral Location

Basically the lender uses the original appraisal as-is with no changes for lender name or borrower name. You don't change anything.
 
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