FHA final inspection, new lender

[angie323]

I completed an FHA appraisal for a client a month ago. It was subject to installation of flooring (flooring was ripped out at the time of inspection) and installation of smoke/carbon monoxide detectors.
The loan was recently transferred to a different lender in the past two weeks. Now they are calling for the final inspection.

Can they order a final inspection on an appraisal that was not initially for them? I think they should order a new full appraisal. Would you give a price break on the order?

 

[glenn walker]

I completed an FHA appraisal for a client a month ago. It was subject to installation of flooring (flooring was ripped out at the time of inspection) and installation of smoke/carbon monoxide detectors.
The loan was recently transferred to a different lender in the past two weeks. Now they are calling for the final inspection.

Can they order a final inspection on an appraisal that was not initially for them? I think they should order a new full appraisal. Would you give a price break on the order?

Yes the FHA Appraisal is fully portable and it's internally assigned from lender "A" to lender "B" and unlike a Fannie-Freddie product the appraisal runs with the property not the lender or borrower. You cannot do this with a Fannie-Freddie, because it negates the USPAP lender/client rule BUT when a Lender assigns the case number and appraisal to another FHA lender, that action is their agreement with HUD to not hold either a borrower or the appraisal hostage. As far as a 1004-D work for repairs they can order it from any appraiser that is on the FHA/HUD roster, no matter who the lender is.

That's how it's done when an-old appraiser dies before the work was completed or he/she is on vacation, or when the original appraiser ticked of the lenders FHA De-Underwriter ** *NOW THE APPRAISERS WHO DO NOT DO A LOT OF FHA-USDA will all jump in this saying the original lender has to give you permission, what they do not comprehend is the release of your appraisal and case number was your original lenders permission, and the original lender sent both your XML & PDF to lender "B" and even if that bad-boy ever defaults your apprial is teh one the lender deepened on.

If you are still in doubt call your FHA- HOC - give them your case number and ask them to explain how your appraisal ended up with a new lender : ) LOL

 

[angie323]

Yes they can order it from any appraiser that is on the FHA/HUD roster, That's how it's done when an-old appraiser dies before the work was completed or he/she is on vacation, or when the original appraiser P*****-offed the lenders FHA De-Underwriter : ) LMAO

 

[Ariba]

Have the lender/client spell out exactly what you are to inspect and attach it to the 1004D report. Do not verify the opinion of value unless they want to pay for a new appraisal

 

[bnmappraisal]

Have the lender/client spell out exactly what you are to inspect

Sounds like the OP already spelled that out ...

It was subject to installation of flooring (flooring was ripped out at the time of inspection) and installation of smoke/carbon monoxide detectors.

(my bold)

Do not verify the opinion of value unless they want to pay for a new appraisal

From the OP, doesn't look like the new lender was asking for that

The loan was recently transferred to a different lender in the past two weeks. Now they are calling for the final inspection.

 

[bnmappraisal]

Can they order a final inspection on an appraisal that was not initially for them? I think they should order a new full appraisal.

See Glenn's response (post #2) especially his bold

Would you give a price break on the order?

IF they decide to order a new, full appraisal, this becomes a business decision ... IF they did, personally, as a business decision, I would give them a "break"

but again ... that's a business decision (especially "how much" of a break)

 

[Ariba]

Sounds like the OP already spelled that out ...

(my bold)

From the OP, doesn't look like the new lender was asking for that

It does not matter what the OP spelled out! It is about what the lender wants and needs. I am glad that you are so knowledgeable on the SOW for this final inspection.

 

[ramrcdk]

Yes the FHA Appraisal is fully portable and it's internally assigned from lender "A" to lender "B" and unlike a Fannie-Freddie product the appraisal runs with the property not the lender or borrower. You cannot do this with a Fannie-Freddie, because it negates the USPAP lender/client rule BUT when a Lender assigns the case number and appraisal to another FHA lender, that action is their agreement with HUD to not hold either a borrower or the appraisal hostage. As far as a 1004-D work for repairs they can order it from any appraiser that is on the FHA/HUD roster, no matter who the lender is.

That's how it's done when an-old appraiser dies before the work was completed or he/she is on vacation, or when the original appraiser ticked of the lenders FHA De-Underwriter ** *NOW THE APPRAISERS WHO DO NOT DO A LOT OF FHA-USDA will all jump in this saying the original lender has to give you permission, what they do not comprehend is the release of your appraisal and case number was your original lenders permission, and the original lender sent both your XML & PDF to lender "B" and even if that bad-boy ever defaults your apprial is teh one the lender deepened on.

If you are still in doubt call your FHA- HOC - give them your case number and ask them to explain how your appraisal ended up with a new lender : ) LOL

ASKED ....and ANSWERED Perfectly

 

[CANative]

It does not matter what the OP spelled out! It is about what the lender wants and needs. I am glad that you are so knowledgeable on the SOW for this final inspection.

A "final inspection" (1004D lower part, no update) is not an appraisal or an appraisal review. It is a Valuation Service performed by an appraiser, acting as an appraiser and therefore constitutes Appraisal Practice. No Standards Rules apply, but other sections of USPAP do apply.

The 1004D completion cert requires the appraiser to enter the original opinion of value and this could be considered communicating assignment results to a party other than the original client.

HUD has a policy whereby HUD/FHA is an identified intended user and that appraisal reports can be transferred (by the lender) to another FHA lender at the request of the borrower. So the issue of disclosing assignment results would also not apply.

Edit: And stop using the exclamation mark so often! lol

 

[Carnivore]

See Glenn's response (post #2) especially his bold

IF they decide to order a new, full appraisal, this becomes a business decision ... IF they did, personally, as a business decision, I would give them a "break"

but again ... that's a business decision (especially "how much" of a break)

So I agree that the original appraiser and even a new appraiser can do this. Here is the issue and its a biggee..... Often times they close the loan and guess who does not get paid? You guessed it right. Both the OP or the new guy, especially if its a new appraiser.

In this case the OP is the guy above who did the original appraisal... So he/she risk not being paid at all.

So i would make sure you have an engagement letter on what is to be done and for how much. I would also include the Original Fee in the invoice if you have not been paid yet. Also often times this opens the door for questions and revisions.

This is a little off topic but I NEVER DO A FINAL for any lender where I was not the Original Appraiser. If they press me, then I want the Original Appraisers Name and phone number to verify that he is dead, on vacation, in Jail, etc. I got burned once, Never Again will i get burned. Lesson learned and i am quick learner.