FHA conversion

[mp2277]

I accepted an assignment for a conventional loan, with the stip that I perform an FHA level inspection in case it would be converted to FHA later. I did. When the report was submitted there was no mention of HUD/FHA as intended users. The lender specifically stated not to mention HUD/FHA. Subsequent to the effective date and delivery of report (by two months) they obtained an FHA number and now request it be converted to an FHA appraisal. My question is this: is the fact that HUD/FHA were discussed as potential future intended users sufficient to add them as intended user. I am thinking the answer is no. The lender of course is thinking otherwise. Thoughts appreciated

 

[glenn walker]

I accepted an assignment for a conventional loan, with the stip that I perform an FHA level inspection in case it would be converted to FHA later. I did. When the report was submitted there was no mention of HUD/FHA as intended users. The lender specifically stated not to mention HUD/FHA. Subsequent to the effective date and delivery of report (by two months) they obtained an FHA number and now request it be converted to an FHA appraisal. My question is this: is the fact that HUD/FHA were discussed as potential future intended users sufficient to add them as intended user. I am thinking the answer is no. The lender of course is thinking otherwise. Thoughts appreciated

Agree with lender , you now include HUD/FHA as Intended users and insert case number and state it met FHA
( MPR ) Sign with same effective date BUT a new signature date.. "AS LONG AS YOUR INITIAL INSPECTION was done to FHA standards.

 

[mp2277]

Agree with lender , you now include HUD/FHA as Intended users and insert case number and state it met FHA
( MPR ) Sign with same effective date BUT a new signature date.. "AS LONG AS YOUR INITIAL INSPECTION was done to FHA standards.

Ok, but just to be clear, my question is not the level of inspection or the date of the FHA case number, it is the permissibility of adding FHA as intended user after the fact, thanks

 

[Tim Hicks (Texas)]

Ok, but just to be clear, my question is not the level of inspection or the date of the FHA case number, it is the permissibility of adding FHA as intended user after the fact, thanks

Yes, as a new assignment.

 

[J Grant]

I accepted an assignment for a conventional loan, with the stip that I perform an FHA level inspection in case it would be converted to FHA later. I did. When the report was submitted there was no mention of HUD/FHA as intended users. The lender specifically stated not to mention HUD/FHA. Subsequent to the effective date and delivery of report (by two months) they obtained an FHA number and now request it be converted to an FHA appraisal. My question is this: is the fact that HUD/FHA were discussed as potential future intended users sufficient to add them as intended user. I am thinking the answer is no. The lender of course is thinking otherwise. Thoughts appreciated

Be sure to check yes did perform a prior service on the subject ( which was the first appraisal when it was non FHA )

Now it is a new assignment with an FHA case number, but using the original inspection date as effective date. l see no problem stating FHA /HUD are intended users now, since they are

 

[The Bob]

FHA allows conversion, but it's still a new assignment.

See page 566 of latest 4000.1

 

[The Bob]

The effective date of the appraisal cannot be before the FHA case number assignment date unless the Mortgagee certifies that the appraisal was ordered for conventional lending or government-guaranteed loan purposes and was performed pursuant to FHA guidelines. When using an appraisal ordered originally for conventional lending or governmentguaranteed loan purposes before the case number assignment date:

• The appraisal must be in full compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), which requires that this be classified as a new assignment. The intended use of the appraisal must indicate that it is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage. Additionally, FHA and the Mortgagee must be indicated as the intended users of the appraisal report. • If the Appraiser determines that the scope of work is met with regard to FHA policy including MPR, MPS, and USPAP compliance, and further determines that a reinspection of the Property is not necessary, the effective date of the appraisal may be the date of the original inspection. • If an FHA-compliant inspection is required, the date of the new inspection will become the effective date of the new appraisal.

 

[spittman]

Yes it can be done. The protocol is on page 132 under the "Effective Date" section in the FHA guidelines:

(7) Appraisal Effective Date

(a) Standard
The effective date of the appraisal cannot be before the FHA case number
assignment date unless the Mortgagee certifies, via the certification field in
the Appraisal Logging Screen in FHAC, that the appraisal was ordered for
conventional lending or government-guaranteed loan purposes and was
performed by a FHA Roster Appraiser.
The Mortgagee must ensure that the appraisal was performed in accordance
with FHA appraisal reporting instructions as detailed in this Handbook 4000.1
and the Appraisal Report and Data Delivery Guide. The intended use of the
appraisal must indicate that it is solely to assist FHA in assessing the risk of
the Property securing the FHA-insured Mortgage. Additionally, FHA and the
Mortgagee must be indicated as the intended users of the appraisal report.

(b) Required Documentation
The Mortgagee must retain documentation in the case binder substantiating
conversion of the Mortgage to FHA.


OP,
I assume you are on the FHA roster so yes you can do the conversion. You would just add FHA references, change the wording for purpose and intended user, include FHA related photos and anything else required by FHA. Basically you are doing everything like you would do for a revision request. Same effective date, but a new signature date. Whether you charge for that is up to you. If they want a new effective date then it is a new assignment and of course you will have to go back out to the property and reinspect for another fee.

 

[sputnam]

Agree with lender , you now include HUD/FHA as Intended users and insert case number and state it met FHA
( MPR ) Sign with same effective date BUT a new signature date.. "AS LONG AS YOUR INITIAL INSPECTION was done to FHA standards.

And with an additional appraisal fee.