Health and Safety

[nancywhitmore]

We generally describe health and safety issues in report and submit report "as is". Other appraisers in area do not comment on health and safety issues, so often, a homeowner has a prior appraisal that was "just fine" according to prior appraiser. What is our liability on health and safety issues? Are we being too picky - realtors, homeowners, and loan officers don't seem to care. Underwriters are the ones who tell the homeowner, that "the appraiser said you have to fix this". This dilema is frustrating in area with only a few appraisers, as we are the bad guys.

 

[OminousRun]

I think you need to be more specific.

If you are doing FHA appraisals and noting health and safety issues, than you are just doing your job.

They should also be addressed on other appraisals, but the guidelines are a little more "gray".

If you know of appraisers in your area that are violating FHA/HUD standards for appraisals, then I would recommend calling your local HUD office and filing a complaint about the other appraiser. Quickest way to get the other guy to stop doing fraudulent FHA appraisals is to get him off the approved list.

 

[CANative]

As an appraiser it is your responsibility to state, summarize or describe the relevant characteristics of the property under appraisal. It's not your responsibility to worry about other appraisers.

 

[OminousRun]

As an appraiser it is your responsibility to state, summarize or describe the relevant characteristics of the property under appraisal. It's not your responsibility to worry about other appraisers.

I think she's saying her company is losing work because they aren't breaking the rules by ignoring problems with properties that other appraisers in her area are all too happy to do.

You have to be ethical in your work. Eventually it will catch up to the other appraisers in your area that are breaking the rules, and then you will be the only one left standing with a valid license and you'll end up with all of the work!!

 

[Webbed Feet]

It was the sensitivity training.

We generally describe health and safety issues in report and submit report "as is".

Why is that?

Other appraisers in area do not comment on health and safety issues, so often, a homeowner has a prior appraisal that was "just fine" according to prior appraiser.

What do you think that means?

What is our liability on health and safety issues?

Do you think this is a question for appraisers?

Are we being too picky - realtors, homeowners, and loan officers don't seem to care.

As we have never seen what you mean, are you?

Underwriters are the ones who tell the homeowner, that "the appraiser said you have to fix this". This dilema is frustrating in area with only a few appraisers, as we are the bad guys.

Gosh, we can't have you being the bad guys! What do you think it would mean if you became like all the other appraisers in your area? Would that mean anything to you?

 

[hastalavista]

As an appraiser it is your responsibility to state, summarize or describe the relevant characteristics of the property under appraisal. It's not your responsibility to worry about other appraisers.

Agreed.
Factually report what exists and what is observed.
If, in your opinion, it affects the health/safety of the occupants, state your opinion. The UW can always disagree with you and waive the condition if it is no big deal to them.

My experience is that anytime I opine there is a health/safety issue, the lender acts as if there is and has it investigated or repaired. If it wasn't a big deal for them, then they'd act differently. Since they act, it is reasonable to presume that it must be of significance to them in their lending decision. :new_smile-l:

 

[NC Appraising]

Fannie Mae I assume.....
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0830.pdf

as-is?


If the appraiser reports the existence of minor conditions or deferred maintenance items that do not affect the livability, soundness, or structural integrity of the property, the appraiser may complete the appraisal "as is" and these items must be reflected in the appraiser’s opinion of value. The lender is not required to ensure that the borrower has had this work completed prior to delivery of the loan to Fannie Mae.

If there are minor conditions or deferred maintenance items to be remedied or completed after closing, the lender may escrow for these items at their own discretion and still deliver the loan to Fannie Mae prior to the release of the escrow as long as the lender can ensure that these items do not affect the livability, soundness, or structural integrity of the property. (sound fimilar FHA)Minor conditions and deferred maintenance items include, but are not limited to, worn floor finishes or carpet, minor plumbing leaks, holes in window screens, or cracked window glass. Minor conditions and deferred maintenance are typically due to normal wear and tear from the aging process and the occupancy of the property.


When there are incomplete items or conditions that do affect the livability, soundness, or structural integrity, the property must be appraised subject to completion of the specific alterations or repairs. These items include, a partially completed addition or renovation, or physical deficiencies that could affect the soundness or structural integrity of the improvements including but not limited to cracks or settlement in the foundation, water seepage, active roof leaks, curled or cupped roof shingles, or inadequate electrical service or plumbing fixtures. In such cases, the lender must obtain a certificate of completion from the appraiser before it delivers the mortgage to Fannie Mae.

 

[NC Appraising]

FHA I assume....

The FHA Appraisal is made
Under the following conditions
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]A. "As Is" [/FONT][/FONT]​

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]1. There is/are no repair(s), alteration(s) or inspection conditions noted by the appraiser, or [/FONT]
[FONT=Times New Roman,Times New Roman]2. Establishing the "as is" value for a regular 203(k), or [/FONT]
[FONT=Times New Roman,Times New Roman]3. The property is being recommended for rejection [/FONT]
[/FONT]

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]B. "Subject to Completion per Plans and Specifications" [/FONT][/FONT]​

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]1. Proposed Construction where construction has not started, or [/FONT]
[FONT=Times New Roman,Times New Roman]2. Under Construction but not yet complete (less than 90%), or [/FONT]
[FONT=Times New Roman,Times New Roman]3. Regular 203(k) [/FONT]
[/FONT]

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]C. "Subject to the following Repairs or Alterations" [/FONT][/FONT]​

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]1. Repair or Alteration Condition(s) noted by the appraiser, or [/FONT]
[FONT=Times New Roman,Times New Roman]2. Streamline 203K, or [/FONT]

[FONT=Times New Roman,Times New Roman]3. Under Construction, more than 90% complete with only minor finish work remaining (buyer preference items i.e., floor coverings, appliances, fixtures, landscaping, etc.). This eliminates the need for construction exhibits. [/FONT]​

[/FONT]​

[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]D. "Subject to the following Required Inspection" [/FONT][/FONT]
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]1. Required Inspection(s) noted by the appraiser [/FONT][/FONT]​

In the performance of an FHA appraisal, the appraiser must denote any deficiency in the appropriate section(s) (site issues in the site section, improvement issues in the improvements section) of the appraisal report. The appraiser is to note those repairs necessary to make the property comply with FHA’s Minimum Property Requirements (MPR) or Minimum Property Standards (MPS) together with the estimated cost to cure. The lender will determine which repairs for existing properties must be made for the property to be eligible for FHA-insured financing.

http://www.HUD.gov/offices/hsg/sfh/appr/aprval.pdf​

Will repairs that are now considered "minor" also be considered "minor" if listed on
the termite report? Can the underwriter waive those conditions listed on the termite
report to coincide with the URAR?
The appraiser will report what is readily observable during their visit to the property. Waiving
any repairs noted on a termite report, which may or may not have been noted in the appraisal,​

should be evaluated on a case-by-case basis

6. Can you confirm my understanding as to whether or not the DE Underwriter has the
authority to waive cosmetic repairs if they are listed on the appraisal report? If so, does
the DE Underwriter need to fill out a specific form or just leave the repairs off the
Conditional Commitment?
Please refer to Handbook 4000.4 Rev-1 (3-3G.) “The underwriter may also add comments or
corrections to modify or amend the report by using the "Direct Endorsement Underwriter/HUD
Reviewer Analysis of Appraisal" form (see Appendix 15). Comments or corrections must be
supported by HUD valuation policy and adequately documented. This includes the adjusting of
value, the removal or addition of repair requirements, and the overall determinations of property
approval and rejection, etc.”​

4. If conditions or physical deficiencies are found, are repair estimates still required on all
items?
Repair estimates are required for those items that may represent a risk to the health and safety of
the occupants, the soundness or structural integrity of the property. The appraiser must indicate
the extent of repairs and note this in the appropriate section of the appraisal, or in the “additional
comments” section, or in an addendum. The estimated cost to cure is noted together with the​

required repairs.

2. Can the DE Underwriter highlight the required repairs on the appraisal if they write on
the conditional commitment – “ see attached appraisal” or do the required repairs have to
be listed on the Conditional Commitment?
The DE Underwriter can highlight the required repairs or inspection conditions noted in the
appraisal and write the notation “see attached appraisal” on the Conditional Commitment form or
they may list the required repairs, alterations or inspection on form HUD-92800.5B (Conditional​

Commitment Direct Endorsement Statement of Appraised Value).

 

[Terrel L. Shields]

Seems to me, what is the line between repairs actually needed and those not needed? Thinking back about some items appraisers have called for repairs in the past.

A 10 year old house with peeling paint? Not a lead issue, is it a health issue?
A door knob lock banged a hole in the wall when the door stop failed.
A cracked window pane.
Trim around the door frame missing.

Donno...what is your limit?