How strict are you when performing FHA appraisal inspections

[Tim The Enchanter]

Any peers carry a "moisture meter" with them on FHA appraisal inspections?

Don't own one, beyond my scope of work.
I will keep an eye out for puddles and casual water though.

 

[ZZGAMAZZ]

Don't own one, beyond my scope of work.
I will keep an eye out for puddles and casual water though.

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I recently described the CB4 "Subject To" status of floorboards, under the master bath, which appeared to be stained. I subsequently participated in a home inspection of a different property in an effort to improve my knowledge of mechanical/plumbing/electrical systems. The home inspector carries a moisture detector, and advised that theoretically any positive reading would be documented as problematic in his inspection. If I am required to jump through technical hoops to be considered by HUD as proficient, I will give the client and FHA the value they are seeking--just realizing that it's easier and more in keeping with the Public Trust obligation to learn the craft rather than to complain about it.

 

[GWISC]

The OP's question pertains to how strict are you?.

I did FHA appraisals back in the day long before the 4150.2 handbook when there were only a few of us per county that HUD would allow on the list. Back then, the HUD personnel told me that HUD can compel the appraiser to pay for repair items missed or not reported by the appraiser.

I had a loan officer, back in the mid 1990's, who always disputed my FHA reports when I would call for a new roof or any other required repairs. The loan officer would claim (without observing the roof), that the roof is fine. Remember, if you claim a defective item meets the FHA minimum, but in reality does not, you could be paying for that roof yourself. This would apply to most any other items that raise a red-flag.

My tolerance for gray-area issues goes to whether I want to be compelled to pay for such items myself. I am not super picky, but I will call for the major components that need repair to be repaired, or I will call for inspections. If the expert thinks the item does not need repair, get it in writing from the expert that says so and keep that in your work-file. Put them on the hot seat when the item goes bad.

I don't know about the rest of you, but my wife is our household's CFO. She does not want us to pay for someone else's home repairs. My tolerance is also tied to how much I want to be in her dog-house, if I were to let something slide.

 

[glenn walker]

FHA/HUD does not and has never made appraisers pay for work. They will file complaints with State Boards and remove you from the roster. Where the appraiser has to be careful is when calling out repairs or on things that we only visually observe - Roofs are the perfect example , if we see water stains in ceilings there is or was a leak somewhere , if we see a roof with missing , curling damaged shingles. IN both scenarios even if teh roof appears to be at or near its end of life we Recommend the lender to Obtain a inspection by a licensed contractor , AS LONG as the roof is repaired and the contractor gives at least a 2 year roof certification that's good with FHA. I actually had a friend years ago appraise a high end home in Los Angeles ( not FHA ) and the appraiser stated the roof was in poor condition and it needed replaced. The buyer backed out of the transaction and guess what the owner just happened to be a big league attorney in LA and he hired a roofing contractor as an-expert witness stating the roof had at least 7 to 8 years of economic life- They get my appraiser buddy on the stand and the Judge asked him if he was a roofer or had any previous experience with roofs and without walking the roof and going into eh attic just how did he determine the roof needed rep,aced ? Well my good friend ended up saying he only visually observed it from the ground. case closed , Judge ruled against appraiser and awarded the plaintiff $10,000 plus attorney fees. LESSON LEARNED on FHA the appraiser is placed in a odd situation, we are told we are not home inspectors but in reality the lines are very blurred especially in the eyes of the public so we have to be careful to not step over the lines and end up representing yourself as being a home inspectors.

I have even heard Realtors tell buyers to not get a home inspection because the FHA appraiser would call out any repairs required. My best was an-old grumpy homeowner who asked me why I was looking in his attic scuttle, I told him FHA required us to do what we call a visual head & shoulder inspection. The old guy looks at me and say- wow I did not know FHA appraisers were also home inspectors - I look back and said no we are not home inspectors , he then proceeds to lay out everything I had done , turned his range & oven on, turned lights off and on, ran water faucets, turned on his heater, checked his hot water tank to see if it was strapped and vented and the list goes on. When I was leaving he said well have a good day but you are a damn liar and either you are a home inspector or a real good imposter, said wait a minute and went out to my truck and handed him a copy of the HUD 2502 GET A HOME INSPECTION DONE ( see attached PDF ) he looks at it and says man you and FHA are selling a crock of S*** And If a buyer needs to also get a real home inspector why the hell are you guys needed. : ) LOL

 

[Ariba]

Flaking/Peeling paint addressed? Pass or Fail final inspection?

 

[GWISC]

Flaking/Peeling paint addressed? Pass or Fail final inspection?

FHA addresses defective paint surfaces. The photos appear to show that new paint, albeit a different color, has been applied. This is a common quick paint job for small areas where the borrower does not have time, prior to closing, to repaint the entire house so that all surfaces match. There is no use in trying to find an exact color match for touch-up as the other portions of the siding have likely faded. It is not aesthetically pleasing to the eye, but the paint surface is no longer defective. I have passed similar quick paint jobs it is is mostly confined to small inconspicuous areas. I am surmising the winter weather prohibits doing a proper paint job prior to closing. Likely, a new paint job will be applied when the new owner has the time to consider all color options and has more suitable weather.

 

[J in Florida]

I don't know, on the FHA's I made sure to thoroughly inspect the wife's underwear drawers.

Seriously folks, I've had more than one angry borrower accuse me of doing that. Some folks will stop at nothing in the effort to get the number they want.

 

[ZZGAMAZZ]

FHA addresses defective paint surfaces. The photos appear to show that new paint, albeit a different color, has been applied. This is a common quick paint job for small areas where the borrower does not have time, prior to closing, to repaint the entire house so that all surfaces match. There is no use in trying to find an exact color match for touch-up as the other portions of the siding have likely faded. It is not aesthetically pleasing to the eye, but the paint surface is no longer defective. I have passed similar quick paint jobs it is is mostly confined to small inconspicuous areas. I am surmising the winter weather prohibits doing a proper paint job prior to closing. Likely, a new paint job will be applied when the new owner has the time to consider all color options and has more suitable weather.

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Your perspective is very practical, and functional, and appears to address the "letter of the law" as well as the specific scenario in support of the needs of the borrower. In my recent effort to more fully embrace my responsibility to serve as the front line HUD representative, I'm becoming increasingly sensitive to 'MARKETABILITY." If an assumption exists that HUD appraisal standards are more thorough than non-HUD standards--not necessarily a bad thing although the requirements might appear to be borderlane insane at times--I personally would be hard pressed to accept patched painting, regardless of the season . . . regardless of whether the assignment is a re-fi or a sale. Making exceptions for the sake of expediency, even if ostensibly on behalf of a beleagured borrower, almost certainly would be prohibited by Handbook 4000.1, or USPAP, if either reference source drilled down to the nuances of the profession, regardless of whether it is a popular opinion.

 

[ZZGAMAZZ]

I don't know, on the FHA's I made sure to thoroughly inspect the wife's underwear drawers.

Seriously folks, I've had more than one angry borrower accuse me of doing that. Some folks will stop at nothing in the effort to get the number they want.

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The Appraiser Otherwise Known as "Steve Stiffler." !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[J in Florida]

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The Appraiser Otherwise Known as "Steve Stiffler." !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Good morning Mrs. Jones, I'm your appraiser.