FHA Report Requirements

[Bill Gutman]

I'm currently working on fulfilling my experience requirements for state testing by working for my mentor. He doesn't do many FHA appraisals so I don't get a lot of mentoring on the FHA side of things. He does so few FHA appraisals that I wonder if the little bit of information he provides me is accurate.

I know HUD has the FHA handbook 4150.2 that provides some detail as to what is required in the different fields of the report as compared to a regular report. My question is this: Is there any other resources such as web sites, books, sample appraisals, etc..., that provides any more or better explanation of what FHA wants? I'm looking to get my hands on anything I can to make sure that I'm educated on how FHA reports should be reported. I know they are picky and I want to do it right.
Any help would be appreciated. Thanks in advance for your help.

 

[Jo Ann Meyer Stratton]

Check the HUD.gov web site under appraisers. There are FAQs that update and correct the 4150.2. Then the National HOC Reference guide that updates and corrects the FAQs and the 4150.2. Then there are occasional postings that update the National HOC Reference guide, FAQs and the 4150.2.

Sometimes the best thing to do is just wander around the appraiser section on HUD.gov. It does have a search function toward the upper right hand corner.

The purpose, intended use, intended user is different for a FHA appraisal than conventional, I use wording similar to what is in the 4150.2.

"The purpose of the appraisal is to offer an opinion of market value for the subject property as defined herein. The intended use of this appraisal is to support the underwriting requirements of a FHA-insured mortgage and the use is to support FHA's decision to provide mortgage insurance on the subject real property. The intended users include the lender/client name above and HUD and is to be used for FHA-insured mortgage lending decisions only."

There is a new VC sheet and Home Buyer Summery, so check your software for a July 2003 issue date on the forms.

If interested, I have a template that I use for my FHA appraisals that I am willing to email anyone. It is definitely not the final word on how to fill out a report--but just some ideas that I have collected and I am always looking for constructive feedback to improve my reports! You can private message me if you are interested.

 

[Wally Jones]

Bill,

First, welcome to the Forum and congratulations on wanting to gain as much knowledge as possible! That alone says a lot about you!

Along with the excellent advice from Jo Ann, if you haven't already done so, read all the posts in this FHA section. It's worth far more than any continuing education class you'll ever find!

Don't ever hesitate to ask questions. You may not always get the right answer, but you sure will get a bunch of opinions!

Good luck and keep posting!

 

[Chris Colston]

Originally posted by Bill Gutman@Aug 30 2003, 02:42 AM

I know HUD has the FHA handbook 4150.2 that provides some detail as to what is required in the different fields of the report as compared to a regular report. My question is this: Is there any other resources such as web sites, books, sample appraisals, etc..., that provides any more or better explanation of what FHA wants? I'm looking to get my hands on anything I can to make sure that I'm educated on how FHA reports should be reported. I know they are picky and I want to do it right.

Check the Appraisal Institute's website. They offer an FHA seminar. They also have books you can purchase.

I'm glad to see you are trying to get your hands on as many resources as possible.

You are aware there is a test you must pass in order to do FHA appraisals and that you must already have your state's Certification?

The other reason you may not get alot of mentoring on doing FHA appraisals, is because your mentor can not assign the appraisal to you. Your mentor must be the one signing off. He/she can however, mention any contribution you made to the appraisal process, in an addendum.

 

[Ben Vukicevich SRA]

Bill,

Chris has given you good advice.

You can not complete the appraisal report for FHA. You can tag along with your mentor and contribute to the report but your mentor must physically inspect the property as the FHA roster appraiser. Also, your mentor can not sign the report as a supervisory appraiser with you signing as the appraiser.

Ben

 

[JSmith43]

Bill,

If you really want to be an FHA smartypants, read all the FHA mortgagee letters http://www.HUD.gov/offices/hsg/mltrmenu.cfm They help fill in the blanks & trump outdated material in the handbook, etc.

Also, review the chat section of NAIFA.com. They have extensive FHA topic coverage in the chat rooms. NAIFA members have likely done the most FHA appraisals as a group, including AI.

 

[Steve King]

You can tag along with your mentor and contribute to the report but your mentor must physically inspect the property as the FHA roster appraiser.

So does this mean the Trainee can take the pictures, measure the lot, get dimensions, fill out the VC Sheet checklist, and take the comp photos and the Mentor only needs to walk in and around the property of the subject and sign off on the appraisal?

 

[Pamela Crowley (Florida)]

Originally posted by Steve King@Sep 6 2003, 09:12 PM

You can tag along with your mentor and contribute to the report but your mentor must physically inspect the property as the FHA roster appraiser.

So does this mean the Trainee can take the pictures, measure the lot, get dimensions, fill out the VC Sheet checklist, and take the comp photos and the Mentor only needs to walk in and around the property of the subject and sign off on the appraisal?

As long as the FHA appraiser IS involved and it's disclosed in the appraisal report just what the trainee did. At least that's what I was told a few years ago..... by the national office I called..... a different person or a different time might change this answer!