FHA Handbook Inspection Requirements And Fee

[CANative]

Old and new requirements stated future utility. So if what you were doing before was good enough you should do the same thing.

 

[Joe23]

No where in the old handbook does it say future utility. It's always been the day we were there.

 

[CANative]

Old and new requirements stated future utility. So if what you were doing before was good enough you should do the same thing.

No where in the old handbook does it say future utility. It's always been the day we were there.

 

[Joe23]

I sit corrected!

However, that's also where it also talks about the VC sheets that are long gone.

Appendix D was written to clarify. It doesn't mention any future guarantees. If FHA were to release and addendum like this, I think that would go a long way into making appraisers less liable with the new handbook..

Appendix D:Mechanical Systems Report on the condition of the improvements, which includes mechanical systems. The nature and degree of any noted deficiency will determine whether to address the deficiency in the narrative comments area of the report under “condition of the property”, or “physical deficiencies” affecting livability or structural soundness. Check mechanical, plumbing and electrical systems in the subject property to ensure that they are in proper working order. This examination entails turning on the applicable systems and observing their performance. If any conditions exist that would affect the health or safety of the occupants, condition the appraisal on the repair or alteration of the condition” and/or a “required inspection.” The following is not an all-inclusive list, but a listing of the more common readily observable property deficiencies. Electrical System • Examine the electrical system to ensure that there is no visible frayed wiring, or exposed wires in living areas and note if the amperage appears adequate for the property. • Operate a representative number of lighting fixtures, switches and receptacles inside the house, garage and on the exterior walls and note any deficiencies. If the appliances present at the time of the inspection do not appear to be reasonable (undersized), determine if there is adequate amperage to run “standard” appliances, as per local code. • The appraiser is not required to insert any tool, probe or testing device inside the panels or to dismantle any electrical device or control.

 

[CANative]

This is the problem many appraisers are having. They think that when FHA adopted the 2005 Fannie Form it became the "kinder gentler FHA" and that all the handbooks were superseded and only Appendix D applied. That is not the case. The image I posted is from the 4905.1 and that was never superseded and still applied until a couple of weeks ago when the 4000.1 became effective. But all the stuff from the 4905.1 has been incorporated into 4000.1 just like the 4910, 4002
4150.2, hundreds of Mortgagee Letters, etc., etc.

A lot of appraisers are see this stuff for the first time and that's why they are so concerned... they think it's new.

 

[Joe23]

I have to admit I was in that category. I just followed the appendix D guidelines.

I don't see how we can comply with the current wording though.

 

[CANative]

Put FHA assignments on hold for a couple of months. Spend a lot of time (at night or when there's nothing to do) reading the 4000.1. Start threads on the forum asking questions. Try to answer other people's questions by looking the issue up in the 4000.1 (use the control f key liberally.)

 

[Joe23]

Thanks, CAnative for the good info, I've read it through a few times. There are a lot of areas not where we must comment on now even if there is not a problem. Perhaps I should have been making more comments on my past FHA reports, but now I know it's required. It will make for a much larger addendum. I've worked my way through almost all the issues, but this one remains. I just can't get past the whole future utility,durability, economy, safe operation and adequate capacity etc...

And you're also right, every time I read through it I find another area I wasn't aware of.

I won't be doing these in the near future till I get more knowledgeable or FHA comes out with some inspection clarification/guidelines.

 

[CANative]

Good luck!

 

[hastalavista]

Thanks, CAnative for the good info, I've read it through a few times. There are a lot of areas not where we must comment on now even if there is not a problem. Perhaps I should have been making more comments on my past FHA reports, but now I know it's required. It will make for a much larger addendum. I've worked my way through almost all the issues, but this one remains. I just can't get past the whole future utility,durability, economy, safe operation and adequate capacity etc...

And you're also right, every time I read through it I find another area I wasn't aware of.

I won't be doing these in the near future till I get more knowledgeable or FHA comes out with some inspection clarification/guidelines.

A lot of appraisers could benefit if they took this attitude (and, not only on FHA-related issues).
I was talking to CAN this morning. I read the USPAP thoroughly and on a regular basis. He mentioned something about Jurisdictional Exception that I had either forgotten or missed (the USPAP isn't as nearly long as the FHA handbook; you'd think I'd know it through and through). My point is that in order to stay sharp and on top of things, most of us (or, at least me) need to regularly refresh ourselves with the material; be it the GSE guidelines, the FHA handbook, or the recognized texts on appraisal methodology and process.

Good for you for recognizing this and proceeding with caution until you've satisfied yourself that you know the protocol, with confidence, to the level you think you (or any peer) should know it.