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FHA Second Appraisal

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Old Man

Thread Starter
Sophomore Member
Joined
Dec 4, 2007
Professional Status
Licensed Appraiser
State
Arizona
Here is a first for me. Lender requests a second FHA appraisal - reason - "purchase of a foreclosed property in a declining market". Order states second appraisal is for "quality control only" and "will not be registered with the loan so no Case Number will be needed". Has anyone else received such a request? and if so, how was it handled?
 

Mr Rex

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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
See the following:

http://www.HUD.gov/offices/adm/hudclips/letters/mortgagee/files/08-09ml.doc
 

K.P. Taylor

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Jul 22, 2005
Professional Status
Certified Residential Appraiser
State
New Mexico
A lot of issues if this is your first. The second appraisal can be a 2055, does not need a new case number but the lender should give you the original case number. The lender must supply you with any repair requirements. The property must be a single family only. See mortgagee letter 2008-09.
 

Old Man

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Dec 4, 2007
Professional Status
Licensed Appraiser
State
Arizona
Yes I know what the mtg letter says - I have done many FHA 1st and 2nd appraisals. What I was referring to was their statement - "quality control only". They don't want the case number (original #) on the report and want a full int/ext inspection.
 

Randolph Kinney

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Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
I agree with Mr. Taylor.

I did a second FHA appraisal as a drive-by, as ordered, with the case number. My value came in low so the lender upgraded it to a full 1004.

In my case, it was a property that was bought as REO and remodeled extensively, put on market as a normal sale. I suspect "quality control" means both appraisals ordered have to agree on value (be within acceptable limits, whatever they are). Obviously, the lower appraised value will rule.
 

K.P. Taylor

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Jul 22, 2005
Professional Status
Certified Residential Appraiser
State
New Mexico
I would not proceed without the case number. The second appraisal must be included within the binder if there is a 5% value difference. Sounds like the lender is trying to get a second appraisal and only wants to inform H.U.D. if they agree. The second appraisal is required if the property is in a decling market. Are they going to keep ordering 2nd until they get what they want. I agree with you "Quality Control Only" is not the only reason they are requesting a 2nd.
 
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Old Man

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Sophomore Member
Joined
Dec 4, 2007
Professional Status
Licensed Appraiser
State
Arizona
I would not proceed without the case number. The second appraisal must be included within the binder if there is a 5% value difference. Sounds like the lender is trying to get a second appraisal and only wants to inform H.U.D. if they agree. The second appraisal is required if the property is in a decling market. Are they going to keep ordering 2nd until they get what they want. I agree with you "Quality Control Only" is not the only reason they are requesting a 2nd.


Apparently they are looking for a 2nd to get what they want. Prelim research of the property - Trustee Deed 06/2008 $47,442 - List Price $89,900 - Pur Price $97,000 - DOM 29.

I requested additional information - they quickly cancelled the order and stated they will contact an appraiser - quote - "willing to work with their policy".
 

Kris Chase

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Sep 8, 2005
Professional Status
Certified Residential Appraiser
State
California
I do a lot of 2nd appraisal FHA drive-bys for BofA and they ALWAYS give me the case number. I assume it's the same case number, but don't know since I don't have visibility into that part of the process. I think the entire reason they are doing the 2nd appraisal is "quality control".

Some of the appraisals that I've done recently have the purchase (contract) price way above the list price, so no wonder they want a 2nd opinion! Sanity check more like it!
 

Old Man

Thread Starter
Sophomore Member
Joined
Dec 4, 2007
Professional Status
Licensed Appraiser
State
Arizona
I do a lot of 2nd appraisal FHA drive-bys for BofA and they ALWAYS give me the case number. I assume it's the same case number, but don't know since I don't have visibility into that part of the process. I think the entire reason they are doing the 2nd appraisal is "quality control".

Some of the appraisals that I've done recently have the purchase (contract) price way above the list price, so no wonder they want a 2nd opinion! Sanity check more like it!


Yes, I've done many 2nd all of which were drive-by all with case #s. My thinking is if they want "quality control", that can be achieved with a review (desk or field) request. When they request a second full interior/exterior and state no case # is required or provided, that brings up questions.

Granted, the list and contract price, may be an indication the property (being 3 years old) is totally trashed and may be questionable on livable and/or safety, and as K.P. stated repair requirements should be provided. Also in this particular market area, which I am quite familar with, REOs average 12 - 15% below average list price and sell well above the stated contract price they provided even with average repairs.

Bottom line, with their lack of information and/or willingness to provide information and/or discuss the full SOW required for the assignment, along with wanting to pay for the assignment COE :rof:, their probably better off finding "an appraiser(s) (skippy) willing to work with their policy".
 

Steve G

Freshman Member
Joined
May 8, 2008
Professional Status
Licensed Appraiser
State
Virginia
When a second FHA appraisal is ordered does the second appraiser get a new case number assigned or is the same number assigned to the second appraisal? A lender just asked me this and I don't know because I'm not involved in the assignment of case numbers.
 
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