FHA Urgent Question

[TerryRohrer]

Assignment elements are as follows, and when an assignment element changes, a new assignment is necessitated.

The assignment elements are Client & Intended Users, Intended Use, Type and Definition of Value, Effective Date, Subject of the Assignment and its Relevant Characteristics, and Assignment Conditions.

Assignment results are confidential.

Assignment results are your opinions and conclusions developed specific to an assignment. Examples include your final value opinion, your highest and best use conclusion and your indications of value from any of the approaches used.

I would not view the inspection, photos, sketches, etc, as assignment results. You can utilize those to develop a new appraisal for another client.

 

[CaliforniaSD]

Assignment elements are as follows, and when an assignment element changes, a new assignment is necessitated.

The assignment elements are Client & Intended Users, Intended Use, Type and Definition of Value, Effective Date, Subject of the Assignment and its Relevant Characteristics, and Assignment Conditions.

Assignment results are confidential.

Assignment results are your opinions and conclusions developed specific to an assignment. Examples include your final value opinion, your highest and best use conclusion and your indications of value from any of the approaches used.

I would not view the inspection, photos, sketches, etc, as assignment results. You can utilize those to develop a new appraisal for another client.

I understand but this will be a new assignment so I have to charge a cancelation fee and negotiate a new fee for a completely new assignment, which I will discount due to the circumstances. Basically, I am starting from scratch, even though I have most of the work completed. I have to go back and make sure nothing has happened to the subject, redo the MC analysis, search for any comparables that have closed or have been listed since the effective date, etc. Correct?

 

[TerryRohrer]

I understand but this will be a new assignment so I have to charge a cancelation fee and negotiate a new fee for a completely new assignment, which I will discount due to the circumstances. Basically, I am starting from scratch, even though I have most of the work completed. I have to go back and make sure nothing has happened to the subject, redo the MC analysis, search for any comparables that have closed or have been listed since the effective date, etc. Correct?

I would not go to all that bother. The additional work necessary to change the lender's name in your skeletal report is nil. I wouldn't probably start a new file, but would not argue with those who propose that you do so. So, if I were in your shoes, I would be sure that you have the directive from your client in writing that the lender has changed (and if it is of concern to you, have the client include in that written directive their agreement that any and all information collected during the completed inspection can be used in the new assignment, and that the effective date will be the date of that inspection). I would then finish and deliver the report, ensuring that my workfile clearly reflected the entire scope of the assignment through both lender names.

 

[redfish]

The FHA wants portability of appraisals. Lender B can and must use lender As appraisal "AS-IS" if the borrower has indeed switched lenders, but more than likely the idiot originator but his/her own company's name on the order form as the lender instead of the actual lender.

 

[bnmappraisal]

I would not go to all that bother. The additional work necessary to change the lender's name in your skeletal report is nil.

I agree with Terry on this one
Although TECHNICALLY the others are correct and it is a new assignment, etc I would be surprised if the AMC doesn't just tell you "Can't you just change the lender name before you submit the report?!" I almost guarantee it

The AMC wants me to change the name of the "client" (intended user) after I already completed the inspection.

So all you have done is the prep work and inspection of the subject?

I am starting from scratch, even though I have most of the work completed. I have to go back and make sure nothing has happened to the subject, redo the MC analysis, search for any comparables that have closed or have been listed since the effective date, etc. Correct?

How long between inspect and "new assignment" ?

 

[Tom4value]

Thank you for the guidance. I have a follow-up question, so the new client/assignment has to have a new FHA case number? Sorry for the dumb question, I'm just not familiar with the entire FHA case number process. Should I call the FHA telephone number and ask them to make sure?

Also, I had one more question since you are well versed in FHA. The subject structure does not appear to have any termite damage. However, the shed and the covered porch attached to the back of the detached garage appears to may have termite damage. I found a fumigation warning during the inspection that stated it was fumigated a couple months ago, the listing agent told me a buyer that backed out requested the fumigation. The agent does not have a clearance, should I make the appraisal subject to termite clearance? Thanks for your help Tom4value!

Not dumb questions, good ones!
Not your job to call FHA. When you get the order from the AMC, they give you the case number. You inform them of what I said in the first post. If they refuse to give you a new order, decline it. If they do, you should have a new case number OR have them show proof that they successfully transferred the number. This rarely happens but is ok with FHA.

In the “old days”, FHA required a termite inspection on all appraisals/loans. That is no longer the case. However, if in your inspection you find visual evidence or, as in your case, proof that there was termite damage, even for an exterior structure, you report your finding and “recommend” (not condition) for an inspection by a “qualified professional “.

 

[Deleted member 142783]

As far as I know, appraisal sticks with the property. There is a process for lender 1 to transfer the appraisal to lender 2.

Call 800 CALLFHA to verify

9 times out of 10 lenders cancel these requests after I tell them to check in to a transfer

 

[Charles West]

As far as I know, appraisal sticks with the property. There is a process for lender 1 to transfer the appraisal to lender 2.

Call 800 CALLFHA to verify

9 times out of 10 lenders cancel these requests after I tell them to check in to a transfer

Listen to Terry, blow it off and go to bed.

 

[J Grant]

The FHA case number stays with the property, but a client (AMC) assigns their own file number when they create an order. So if the lender name changes, the FHA case number stays the same and ask the AMC to re send the order with a new file number as a new assignment but with same FHA case number (unless they see a reason to change it, use the effective date you went out and inspected, and and continue with the the appraisal as a new assignment -