FHA/Flagstar Question

[TXCBoy36]

I performed an FHA Appraisal in late September for my client. Apparently, they had a problem with the original lender that they were going to use.

So, now they are trying to run it through Flagstar, but I am not approved with Flagstar. So, now they are wanting to cancel an already completed and delivered FHA Appraisal because I am not on Flagstar's approval list.

From what I understand, they can not switch appraisers, once a FHA Case File# is assigned to an appraiser, at least for 6 months. Will FHA release an appraisal because the lender will not put that FHA Appraiser on their approval list.

The only reason I am not approved with Flagstar is because I do not yet meet their 5 years experience criteria. You have to have 5 years experience from when you first get Licensed, and I do not have the full five years yet.

I personally do not think that FHA will release the appraisal for this reason. I am concerned, can a lender refuse to accept one of my FHA Appraisals if I meet the approval standards for FHA.

Has anynone run across this with Flagstar?

Any suggestions would be helpful.:icon_question:

 

[timd354]

Flagstar does have some strict requirements for appraiser approval.
Here's the deal, once a FHA appraisal is performed and logged into the FHA CHUMS system (which is supposed to be done when the appraisal report is received by the MB or lender), that appraisal is the only one that the FHA will accept on that property for the next six months. If Flagstar wants to do an FHA loan on that property, then they will have to use your appraisal. That being said, Flagstar cannot be forced by the mortgage broker to approve the loan and Flagstar is well within its rights to not do the loan because you are not on their approved appraisers list. A lender is held responsible for the quality of the appraisal used to underwrite a mortgage loan when it is sold on the secondary market, thus, lenders are never obligated to accept any appraisal for any loan. Maybe Flagstar will accept the deal and your appraisal if a field or desk review is done by a Flagstar approved appraiser (the mortgage broker can check with Flagstar).

 

[Michigan CG]

.......Here's the deal, once a FHA appraisal is performed and logged into the FHA CHUMS system (which is supposed to be done when the appraisal report is received by the MB or lender), that appraisal is the only one that the FHA will accept on that property for the next six months.......

Are you SURE about this? I did an FHA about 6 weeks ago, came in way low and the MB got a new appraiser and the new guy hit the number...exactly....skippy....The deal closed FHA. I was not happy, but was told they can get another appraiser.

 

[timd354]

Are you SURE about this? I did an FHA about 6 weeks ago, came in way low and the MB got a new appraiser and the new guy hit the number...exactly....skippy....The deal closed FHA. I was not happy, but was told they can get another appraiser.

No doubt what they did was cheat and here is how the did it: When they received your appraisal, instead of logging it into the FHA CHUMS system like they are required to by FHA protocol, they threw it in the trash. Then, they went into the system and reassigned the appraisal to another appraiser. I believe that the system requires the MB to state why the appraisal was being reassigned to a different appraiser, but that is easy to work around, they just entered into the system some bogus excuse like you were on vacation, or, for some other reason, you were unable to accept the assignment. If this is what they did, I believe they committed a federal crime.

You should file a complaint with the applicable HOC and include a description of what you know happened and let them know the property address and FHA case #.

 

[TXCBoy36]

Well, then I guess I will go ahead and contact FHA about this, so I can get this handled in some way.

 

[RSW]

That's what I would do.

 

[BRCJR]

Unless they have changed to 5 years in the past year, it was 24 months of appraisal experience that must be confirmed.

I was 2 months shy in a similar situation and they had to get another appraisal. Two weeks later a lender called, I told them I was now 6 weeks shy, they got me approved with Flagstar somehow. I completed the assignment and got paid (summer of 2007).

 

[wadetx]

I had the same thing happen this past week. I am located in a fairly rural area and am the only FHA roster appraisal for miles; however, I've been told by Flagstar that I must be licensed for 5 years. Think of it this way: If everyone had Flagstar's policy, no one could work for 5 years after becoming licensed. Makes a lot of sense, huh! I guess bad, older appraisers are considered more reliable than young, educated ones.

 

[Roy Courtney]

Flagstar Bancorp (FBC) closed today at $0.65 per share. 2008 third quarter net loss of $62.1 million. Better get on their list fast!

 

[Parker]

Are you SURE about this? I did an FHA about 6 weeks ago, came in way low and the MB got a new appraiser and the new guy hit the number...exactly....skippy....The deal closed FHA. I was not happy, but was told they can get another appraiser.

Timothy,

Did you get the cast number before you started? Some of these MB's use appraisers who don't insist on seeing the case number before they inspect. That’s how they pull the switch. You should report the jerk to you local HUD office.