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Has anyone heard of this?

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TXCBoy36

Thread Starter
Junior Member
Joined
Oct 3, 2007
Professional Status
Certified Residential Appraiser
State
Colorado
I have a client that called me yesturday and asked a question that I have not seen before.

Apparently, this client has a borrower that recently purchased a FHA home less than 6 months ago. The borrower apparently is not happy with their home and they are wanting to relocate to a nicer/safer neighborhood and they are wanting to buy another FHA home. My client told me that they spoke with their lender's underwriter and the underwriter stated that the FHA appraiser would need to make a statement stating that the first property is in an unsafe neighborhood, etc for them to utilize a second FHA loan. I am familar with the area that this first home is located and it is a questionable area.

I have never run across this and I have a call into the FHA help line, waiting on a return call, but I was wondering if anyone has run across this before.

Let me know if you need more details.

JC:huh:
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
An appraiser making that type of statement would be treading on very thin ice in regards to the ethics and conduct section of USPAP, perhaps Std 1 of USPAP, as well as FIRREA, HUD/FHA requirements and other assorted guidelines and requirements I haven't even thought of.
 

John LaBelle

Junior Member
Joined
Jul 5, 2006
Professional Status
Certified Residential Appraiser
State
Massachusetts
I've never heard of it.
I don't think just because the Buyer didn't due their own due diligence on the area they are buying a home in should be cause for an appraiser to add a comment to the appraisal. In my opinion, nicer and safer are not necessarily the same thing. I would also not add an "unsafe" neighborhood comment without some sort of crime statistics which could back up such a statement.
 

Marcia Langley

Senior Member
Joined
Aug 26, 2005
Professional Status
Certified Residential Appraiser
State
Missouri
TXC,

No way would I stick my neck out for something like that. Greg listed a few of the laws and regs that you might be in danger of violating.

Not to mention the lawsuits that would most likely come from the original seller of the property.

Aside from that, this whole thing sounds really fishy. Smells of craziness.

Nope.
 
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Ms. Janet

Elite Member
Gold Supporting Member
Joined
Oct 27, 2004
Professional Status
Certified Residential Appraiser
State
Florida
An appraiser making that type of statement would be treading on very thin ice in regards to the ethics and conduct section of USPAP, perhaps Std 1 of USPAP, as well as FIRREA, HUD/FHA requirements and other assorted guidelines and requirements I haven't even thought of.

Like the DOJ...the lender themselves will probably turn you in
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Doh!!! I had my French Toast YESTERDAY. What was I thinking?

Today is National French Toast Day
 

john eickhoff

Junior Member
Joined
Apr 17, 2003
Professional Status
Banking/Mortgage Industry
State
Texas
There are very specific requirements that would allow a person to have 2 FHA loans and they are spelled out in HUD Handbook 4155.1 REV-5 and none of them have to do with the neighborhood being unsafe
 

Wendy

Senior Member
Joined
Feb 23, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Depending on your background, what is unsafe to one person may be paradise to another.

I would not touch this with a 10 ft pole.
 

Doug Meyer

Senior Member
Joined
Sep 13, 2003
Professional Status
Certified Residential Appraiser
State
Indiana
Sounds like some old mortgage broker tricks!!!
 

Bearslide

Senior Member
Joined
Dec 9, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Make that a 20 foot pole. No way, no how. Not unless you want to end up before your State Board and in the middle of a lawsuit. Someone is trying to blow smoke your way. :angry:
 
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