FHA Publishes Updates to Single Family Housing Policy Handbook 4000.1

[JeffSH]

Link to Handbook with Highlighted Updates -

https://www.allregs.com/tpl/Base/Vi...2fc3-56b0-4509-8607-a6014377ddca&mimeTypeId=5

Here are some notable points. The appraisal section isn't too long and you should read it for yourself. Starts on PDF page 598.

• You have to state the subject meets both MPR and MPS. Seems the phrase "HUD’s Property Acceptability Criteria" would suffice.
• If the subject is in a PUD, you have to name the PUD.
• Properties must have a kitchen, which must include a sink with potable running water and a stove utility hookup.
• Added safety wording about crawlspace/attic inspection. If you can't safely inspect, you must call for one.
• Clarified that changing market means increasing or decreasing. Must do an absorption rate analysis in all changing markets.
• "Head and shoulders" wording has been removed from the crawl/attic inspections.
• No more MC Form

Effective April 18, 2023

 

[ZZGAMAZZ]

Link to Handbook with Highlighted Updates -

https://www.allregs.com/tpl/Base/Vi...2fc3-56b0-4509-8607-a6014377ddca&mimeTypeId=5

Here are some notable points. The appraisal section isn't too long and you should read it for yourself. Starts on PDF page 598.

• You have to state the subject meets both MPR and MPS. Seems the phrase "HUD’s Property Acceptability Criteria" would suffice.
• If the subject is in a PUD, you have to name the PUD.
• Properties must have a kitchen, which must include a sink with potable running water and a stove utility hookup.
• Added safety wording about crawlspace/attic inspection. If you can't safely inspect, you must call for one.
• Clarified that changing market means increasing or decreasing. Must do an absorption rate analysis in all changing markets.
• "Head and shoulders" wording has been removed from the crawl/attic inspections.
• No more MC Form

Effective April 18, 2023

Do you mean that both MPR and MPS should be referenced in each report, or one-or-the-other, as always?

 

[shrubberyvaluation]

Link to Handbook with Highlighted Updates -

https://www.allregs.com/tpl/Base/Vi...2fc3-56b0-4509-8607-a6014377ddca&mimeTypeId=5

Here are some notable points. The appraisal section isn't too long and you should read it for yourself. Starts on PDF page 598.

• You have to state the subject meets both MPR and MPS. Seems the phrase "HUD’s Property Acceptability Criteria" would suffice.
• If the subject is in a PUD, you have to name the PUD.
• Properties must have a kitchen, which must include a sink with potable running water and a stove utility hookup.
• Added safety wording about crawlspace/attic inspection. If you can't safely inspect, you must call for one.
• Clarified that changing market means increasing or decreasing. Must do an absorption rate analysis in all changing markets.
• "Head and shoulders" wording has been removed from the crawl/attic inspections.
• No more MC Form

Effective April 18, 2023

This is not related specifically to the new requirements but I'm going to a new construction soon FHA and wondering what you do when there is a scuttle with insulation on the other side that must be disturbed. Do you just take a picture showing this and move on? I'm just wondering if it will just cause them to have to move the insulation and it will just cost me more time and aggravate people and what others do.

 

[Tom4value]

Link to Handbook with Highlighted Updates -

https://www.allregs.com/tpl/Base/Vi...2fc3-56b0-4509-8607-a6014377ddca&mimeTypeId=5

Here are some notable points. The appraisal section isn't too long and you should read it for yourself. Starts on PDF page 598.

• You have to state the subject meets both MPR and MPS. Seems the phrase "HUD’s Property Acceptability Criteria" would suffice.
• If the subject is in a PUD, you have to name the PUD.
• Properties must have a kitchen, which must include a sink with potable running water and a stove utility hookup.
• Added safety wording about crawlspace/attic inspection. If you can't safely inspect, you must call for one.
• Clarified that changing market means increasing or decreasing. Must do an absorption rate analysis in all changing markets.
• "Head and shoulders" wording has been removed from the crawl/attic inspections.
• No more MC Form

Effective April 18, 2023

Funny how the 1004MC addendum is no longer required but it does give you the absorption rate. “The right way, the wrong way and the government way”!

 

[JeffSH]

Do you mean that both MPR and MPS should be referenced in each report, or one-or-the-other, as always?

I've always just said something like, "the subject meets the minimum property requirements per handbook 4000.1"

It seems now you have to state both MPR and MPS. I'm probably just going to say "HUD’s Property Acceptability Criteria" since it covers both.

 

[JeffSH]

This is not related specifically to the new requirements but I'm going to a new construction soon FHA and wondering what you do when there is a scuttle with insulation on the other side that must be disturbed. Do you just take a picture showing this and move on? I'm just wondering if it will just cause them to have to move the insulation and it will just cost me more time and aggravate people and what others do.

The attic has to be inspected, either by you or someone who can do it safely. It doesn't matter if something's in the way or the scuttle is screwed shut. Those things can be moved.

I recently bought a cordless drill for situations just like this. About once a year some access point that I have to inspect is boarded up.

 

[ZZGAMAZZ]

I've always just said something like, "the subject meets the minimum property requirements per handbook 4000.1"

It seems now you have to state both MPR and MPS. I'm probably just going to say "HUD’s Property Acceptability Criteria" since it covers both.

And the verbiage should include "HUD Mortgagee Letters," in addition to the 4000.1 Handbook. As an aside, I "think" that the absorption rate should be reported in the. SCA narrative...

 

[VolcanoLvr]

This is not related specifically to the new requirements but I'm going to a new construction soon FHA and wondering what you do when there is a scuttle with insulation on the other side that must be disturbed. Do you just take a picture showing this and move on? I'm just wondering if it will just cause them to have to move the insulation and it will just cost me more time and aggravate people and what others do.

The 'lids' I've seen for the scuttle opening with insulation on the back have the insulation firmly attached to the lid, often by glue. If that's not done, it defeats the purpose of adding insulation there. Whenever I'm opening the scuttle lid, I always try to push straight up with my hands because one never knows if there is insulation on the backside, or how 'thick' the opening is. Newer construction often has 10" or 12" of insulation, with the scuttle opening surrounded with 2x10's or 12's.