FHA 'inspection Requirements' Vs State Law

[Fargo1]

What I am pointing out is the differences in FHA/HUD protocols and rules vs state law and what an appraiser is trained to do.

As I understand our legal system, Federal Law trumps State law, State law trumps County law etc. However, unless I am misunderstanding something, the 4000.1 handbook is not Federal law. It does not have any jurisdiction over State or local laws. We need to comply with the law first and foremost. It really doesn't matter what the handbook says when it comes down to defending if you performed a home inspection or not. If your state law says your actions constitute a home inspection, then you just completed a home inspection and you will be held accountable by the law as having performed a home inspection whether you are licensed for home inspections or not.

 

[Peter LeQuire]

It is not a HUD issue - it is a state enforcement issue. The exculpatory language of the HUD manuals will not defend an appraiser before a state agency regardless your protestations that the HUD instructions are "all you need to know".

Don't bother.

 

[CANative]

More business for me.

 

[Peter LeQuire]

More business for me.

Only if you're licensed in this state.

 

[Fargo1]

I've been looking into whether or not I need to be licensed as a home inspector to complete FHA appraisals. I found this definition of a home inspector in one of the states that I work in. This is the official definition in the ND Century Code. The bold emphasis is mine.

"Home inspection" means the process by which a home inspector provides a
nonintrusive, visual examination and written evaluation of the heating system, cooling
system, plumbing system, electrical system, structural components, foundation, roof,
masonry structure, and exterior and interior components of a residential building. The
term does not include an examination of items that are concealed or not readily
accessible or identification of concealed conditions or defects.

This sure sounds a lot like what FHA is requiring us to do. I never really questioned it before, but suddenly I am very concerned that I have been doing home inspections without a license. The Century Code can be found here if someone wants to verify my sources.

http://www.legis.nd.gov/cencode/t43c54.pdf?20141004162308

 

[CANative]

^^ Like I said Peter: More work for me.

 

[Howard Klahr]

Per Florida state law

Apparently you didn't do enough research. Next time try reading the entire statute. Hint FS 468.831 Exemptions

 

[normando]

If I had no assets, I would take FHA appraisals. Otherwise, liability too high in taking additional work which is beyond typical appraisal work. The FHA fee has to be at least $100 more. Of course, there will be appraisers willing to work for less.

 

[CANative]

http://www.leg.state.fl.us/statutes...ng=&URL=0400-0499/0468/Sections/0468.831.html

 

[Eli]

I wish somebody would call HUD and ask their opinion. I also wish somebody would call their state and ask their opinion. I hate speculation sometimes. It gives me indigestion and a few other ailments.