FHA Condo - UW requests clarification

[Green Hornet]

Submitted report 6/12/2008 - stated in report no comparable sales within 5 miles and a 12 month perior. UW wants sale within the project within the last 12 months. I guess I should have been more explicit.

I replied in e-mail - Now they want reply put in addendum. I might add with notation of revision date and explaination of why the revision. Any problems specific to FHA with doing this.

Your opinions?

 

[Marcia Langley]

Green,

No problem with FHA.

Your addition to the addendum will be handled like a correction. In the addendum you should explain the need for the correction and the nature of the correction.

You should give the corrected file a new file name and a new report date and keep both versins of the report for 5 years.

Minor corrections are common but the clear distinction between the first report and the second report should be documented.

 

[Green Hornet]

Marcia,

Thank you for the information.

 

[RSW]

Sounds to me like the lender just wants some clarification about the subject's development. You may not have provided a clear understanding about the lack of sales in the subject's development in the original appraisal report. I would add an addendum referencing the request from the lender and give a better description of your efforts to locate sales in the development and about the lack of sales in the development. This is why it was necessary to go outside the subject's development in order to locate adequate sales in order to complete the appraisal assignment. I would give it a different signed date but I don't think I would classify it as a new appraisal since you are only clarifying your original appraisal report.