FHA Inspection

[Common Sense]

I have an order for an FHA Appraisal. The LO did not supply the case #.
The borrower is going to pay for the appraisal upfront. Can I complete the Inspection and do the report. Then just put it on the LO to get me the case#.

:mellow:

 

[Randolph Kinney]

I have an order for an FHA Appraisal. The LO did not supply the case #.
The borrower is going to pay for the appraisal upfront. Can I complete the Inspection and do the report. Then just put it on the LO to get me the case#.

:mellow:

Sure, you can do that. Do you sit on the appraisal, waiting for the case number? Now what happens if, for what ever reason, the FHA case number never comes?

 

[Mr Rex]

Ding, ding. I can answer that Alex. What is you have just done an appraisal that you will never be paid for?

I'll take French Revolutionary War Romance novels for $500 Alex.

 

[Mike Boyd]

You can....but you shouldn't. Gives the client too much leeway in case you do not "meet the sales price."

 

[Common Sense]

I am not going to send him the appraisal until he gives me that Case number. If the borrower calls. I can simply explain we are not allowed to submit the Appraisal with out the case number. As soon as the LO gets me that info I will submit the Appraisal.
Guys am I wrong for this? PS Borrower is going to pay full fee at the door.
What is the exact written procedure regarding this issue I would like to save it to my desk op for future REF.

Thanx in Advance

 

[K.P. Taylor]

I will not do the inspection until I have a case number not FHA policy but mine. I asked FHA HOC Denver about this exact issue and the response is as follows.

To obtain a case number, the lender must input the property and borrower data and select an appraiser from the approved-appraiser list via FHA Connection. The lender may assign the appraiser before receiving the case number, but the case may not be submitted for endorsement without the case number. The case number must be placed on all copies of the appraisal including all addenda. If the property is a condominium, the lender must verify that it is HUD-approved before ordering a case number or having an appraisal performed. The lender will give the appraiser the project name and ID number and all available property information. More information on obtaining an FHA case number, viewing the approved-appraiser list and approved-condominium list can be found in the FHA Connection User Guideat the following website:https://entp.HUD.gov/qckstart/qckstrt.htm DISCLAIMER: All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document. Additional Information Reference: Handbook 4150.2, Section 1-2; https://entp.HUD.gov/qckstart/qckstrt.htm

 

[ZZGAMAZZ]

--HUD is OK with the appraisal process proceeding prior to the case# being assigned, although you will need to fight the LO, MB, and Underwriter to prove your point.
--Me, I jump on that COD and cash the check ASAP especially during a recession.
--If the Case# is not forthcoming, it is not an FHA assignment and there are no pertinent HUD regs. (A LO phone call cannot possibly constitute a FHA assignment.)
--my perspective differs from that of the Forum but if there is a quarter on the ground you'd better walk down the sidewalk with your head down or somebody else will get it first...

 

[Delta85]

As long as I'm paid at the door I will do the inspection without a case #. I don't send the report without a case # though and if I do I make it very clear within the body of the report that this a standard appraisal report and not an FHA/HUD level report.

 

[Flygirl 152]

At the FHA class I took, they said under no circumstances should you proceed with an appraisal unless you have a case number.

 

[Riick]

Ding, ding. I can answer that Alex. What is you have just done an appraisal that you will never be paid for?

I'll take French Revolutionary War Romance novels for $500 Alex.

Buzzzzz... Sorry Mr. Rex.... anyone else? << silence>>
The correct answer is:
What you have just done is an appraisal that has been paid for and never seen or used by HUD/FHA.