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HUD PROGRAM for recent purchase/resale? UNDER PHIL HOC

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Doug Walters

Freshman Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Nebraska
Bob,
Sorry I couldn't respond sooner. Computer was sick. :(
The letter you shared is a circular that applies only to the Philadelphia HOC at this point and time.

"Where the sale of the REO property took place within the last 12 months, mortgagees will see a message in Holds Tracking directing them to submit the following documents:

a) Copy of the HUD-1 from the REO sale
B) Copy of the new sales contract
c) "A COPY OF THE NEW APPRAISAL AND VC SHEET (THE APPRAISAL MUST BE COMPLETED EVEN THOUGH A CASE NUMBER HAS NOT BEEN ISSUED)
d) A copy of the FHA Connection case number assignment screen

HUD will evaluate these documents, and once any questions we may have are resolved, will release the new case number.

These instructions are directed at the lenders who, in turn, notify the appraisers of the new requirments. The lender has given you notice (and a copy) of the new HOC requirements with which you should comply. Ask for a copy of the screen shot of item D for your file. The problem with the directions for appraisers is item C. It is in direct conflict with HUD's own appraisal reporting instructions and guidelines for appraisers.

This new lender criteria appears to be a pre-endorsement review of HUD REO properties that have sold and are utilizing FHA financng once again.

Also note that this action has only been taken by one HOC at this point. You can be certain it will add to the confusion for both lenders and appraisers who may be performing appraisals on REO sales for different HOCs. :oops:

The HUD REO appraisal, which is performed before the property is offered for sale, has different reporting requirements from the typical FHA appraisal perfomed for securing financing. As a point of interest for FHA appraisers, a mortgagee letter was issued in 2000, MORTGAGEE LETTER 00-27, providing additional guidelines for HUD REO appraisals. Use that mortgage letter and the 4150.2 as your reference sources when performing those types of assignments. :wink:

It can be obtained by visiting www.hudclips.org
Select mortgage letters from the menu list. Document number is 00-27.

Doug Walters
 

Brad Pack

Junior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
California
It appears that PHOC has implemented a resale program (seasoning period) similar to that proposed by HQ, and was open for public comment, back in December. As I recall, this proposal would restrict FHA mortgage insurance for properties that resell within a 6 month period. FHA mortgage insurance COULD be obtained on these properties ONLY after a thorough review of the case file, just as Doug has described. Personally, I believe this should be mandatory nationally, however; the NAR and MBA vehemently opposed the rule and were fighting it tooth and nail.

It appears that national conformity (guidelines/procedures) is deminishing sooner than I had anticipated.

Hold on folks - things could get interesting....
 
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