(FHA/conventional) Conversion

[LPA]

I recently completed a FHA appraisal for an AMC and they sent me an order back with the same subject property needing a (FHA/Convention) conversion. Question. Is this the identical appraisal just extracting the FHA verbiage? Same dates? Thanks for any help on this subject.

 

[gregb]

https://appraisersforum.com/forums/threads/FHA-to-conventional-conversion.212045/

 

[Tom4value]

Per USPAP, if the users of the appraisal changes, it is a new assignment. If it goes from FHA to conventional, FHA/HUD is no longer a user. It is a new assignment. You cannot simply change it.

 

[gregb]

If the lender/client is the same, it would not be a new assignment.

 

[Tom4value]

If it was an FHA appraisal, FHA/HUD was a use in addition to the client. If it switched to conventional, FHA/HUD is no longer a user. New assignment.

 

[GA Benny]

I agree that it is a new assignment, however, a new inspection and a new effective date may not be necessary. If they are ok with the same effective date, just clone the report with a new file number and remove any FHA references. You also need to report the previous appraisal as prior services.

Oh and my favorite part...a new fee.

 

[Don Clark]

I agree that it is a new assignment, however, a new inspection and a new effective date may not be necessary. If they are ok with the same effective date, just clone the report with a new file number and remove any FHA references. You also need to report the previous appraisal as prior services.

Oh and my favorite part...a new fee.

USPAP is ver clear on how to handle this.......read it. And, it may not need a recreaction of all the work. Read it.

 

[hastalavista]

I agree that it is a new assignment, however, a new inspection and a new effective date may not be necessary. If they are ok with the same effective date, just clone the report with a new file number and remove any FHA references. You also need to report the previous appraisal as prior services.

Oh and my favorite part...a new fee.

A. It is a new assignment.
B. One can remove references to FHA, but if one is relying on the SOW that was performed for the FHA assignment, then one would have to disclose (summarize) that as part of the SOW for the new assignment. IMO, that would mean disclosure of inspecting the attic/crawl space, testing appliances, etc.

See FAQ #158.



I'm not sure why a lender needs to have FHA removed from the appraisal to use it for conventional loan purposes as long as the original SOW and reporting is sufficient for the conventional loan requirements?
Other than to just get a "cleaner" (nothing nefarious) appraisal report.

 

[residentialguy]

If the lender/client is the same, it would not be a new assignment.

BEEP....wrong. Different sow - new assignment