FHA Required Repairs

[sputnam]

That is the lender's call, not the appraiser's.

Yes. I'm not sure why, but many appraisers think they are part of the loan decision. The appraiser's only job is to develop and report an opinion of value. The Lender decides whether to make the loan or not. Our role is to provide the Lender information.

 

[Tom4value]

Completed an FHA inspection and the dishwasher was not operable as the drain tube was not connected and it was not tested during inspection. So I made the report "subject to" repair and retest of the dishwasher per HUD requirements and I am being informed that lenders are now skipping a reinspection (1004D) and having agents send photos and videos to the lender to clear the repairs. Ok...this does not sound right and only the appraiser should clear a required repair. Anyone experiencing this or have any comments? Thanks....

Underwriters have a final say and have more final discretion than most appraisers think. Our job is to provide an opinion of market value and provide an opinion as to if the property meets minimum standards. In your case, you advised that there was an issue with the dishwasher. Good job. They took care of it.

On a side note as to what I was talking about, I have actually advised underwriters as to their discretional powers. A common issue here is peeling exterior paint. I note that it needs to be scraped and painted. They come back and say, “it is January and 10 degrees out!”. I inform them that they can note that and approve the loan and close the deal.

 

[glenn walker]

Be thankful one less liability for the appraiser when the FHA De Underwriter signs off on a inspection or repair....lol

 

[Wm. Hattaway]

How many of you doing FHA appraisals (I do a lot) test the dishwasher?

FHA 4000.1 only requires inspection when the dishwasher adds to the market value. If the dishwasher does not add value, it is considered personal property and does not need testing. I have never seen a dishwasher add value. From 4000.1, "Appliances that are to remain and that contribute to the market value opinion must be operational. The Appraiser must note all appliances that remain and contribute to the Market Value"

 

[Tom D]

Interesting, i didn't know that about appliance non value. So i was following their rules when i never tested some of the appliances. Especially on a vacant, or new home.

 

[J Grant]

Completed an FHA inspection and the dishwasher was not operable as the drain tube was not connected and it was not tested during inspection. So I made the report "subject to" repair and retest of the dishwasher per HUD requirements and I am being informed that lenders are now skipping a reinspection (1004D) and having agents send photos and videos to the lender to clear the repairs. Ok...this does not sound right and only the appraiser should clear a required repair. Anyone experiencing this or have any comments? Thanks....

IDK application for it for FHA, but I am aware that lenders are no longer required to get a 1004 D signed by the appraiser, about a repair being made. The lender, at their discretion, can accept photos and a statement from the homeowner. If the lender is willing to accept it for this FHA assignment, I would be fine with it as the appraiser

A diswahser is a nonessential item with regard to health, safety, or functionality. Making it subject to repair IMO is over the top - it would not contribute significance to value one way or another.

 

[Zoe]

IDK application for it for FHA, but I am aware that lenders are no longer required to get a 1004 D signed by the appraiser, about a repair being made. The lender, at their discretion, can accept photos and a statement from the homeowner. If the lender is willing to accept it for this FHA assignment, I would be fine with it as the appraiser

A diswahser is a nonessential item with regard to health, safety, or functionality. Making it subject to repair IMO is over the top - it would not contribute significance to value one way or another.

I would disagree on value. If was in the purchase contract, it most definitely contributes to the original opinion of value in the appraisal. You are correct the lender can sometimes not order a 1004D. That still does not change the original conditions of the appraisal and resulting value opinion. If all the data on comparables analyzed have dishwashers and the original appraisal was done subject to as one of the conditions and subject to a final inspection by the appraiser? Those terms are still in place regardless of what FHA or the lender determine are acceptable.

 

[glenn walker]

And now you know why lender's like waivers.

How many hours were spent on this issue between the appraiser, the lender and others ? before the UW said F it I'm just signing off and going to funding.

Even after the Lender tells the appraiser they don't need the 1004d he's still wanting to do one or worried about it.