I hate when they do the transfer thing!

[Jo Ann Meyer Stratton]

That has been FHA/HUD's policy for many years. I have been completing appraisals of HUD REOs since 1982 and that situation has occasionally occurred. If the property sells within four months (it used to be six months) and the buyer goes with FHA financing, the appraisal completed for the property disposition unit will be used for the financing. And if there was items that did not meet MPR, they would have to be repaired or inspected prior to the sale closing. I have always thought it was a little odd, because the REO appraisal report is "as is" but the sale will be "as repaired" and those repairs would not be included in the market value in the REO report.

 

[Webbed Feet]

I am having the same exact issue. Lender A was QL and now lender B wants a few corrections/clarifications to the report based on a desk review that Lender B ordered. Lender B sent me the review, my appriasal and FHA transfer docs. The review noted some minor errors to two adjustments and incorrectly disclosed

There is no such thing as "incorrectly disclosed." "Disclosing" something that is a falsehood, as if it is fact, is simply making an error.

that I made age of comp errors and room count errors (the reviewer clearly relied on MLS data and did not extract basement room/bath counts). Age "errors" were within two years and I used the ~symbol. There were some other typos and minor corrections that were justified. I told Lender B that the request should only come from lender A. Assuming Lender A makes said request can I address this in an addendum for lender A?

You do understand you just asked us if your client requests something if you can work with your own client, right?

Why would lender A makes this request as they did not order the review?

How would we know?

Any thoughts would be appreciated.

Are you sure?

 

[ANNA TODARO]

HUD is WRONG in doing this! (Using the appraisal for lending purposes when the order specifically requests for marketing purposes and as Jo Ann notes in "As Is" condition.)

I don't care how long they have been doing this... The purpose of the appraisal was for marketing. The Client was A. Now it is being used for lending purposes for Client B.

WRONG!

And to think that they are the reason for appraisers to be Certified. As if they need those who really know what they are doing for their appraisals and then they go and condone violating USPAP in this way.

I am mad... and that appraisal they are using is useless. They cannot hold me liable for it. I clearly define the use and user.

 

[Scott R Marshall]

Hello,
The request for additional commentary is not required per HUD handbook 4150.2 but is rather a lender specific guideline request. Since you are not my client I will not agree to the additional scope of work you are requesting.
As to sending / emailing a copy of the full report, you have previously stated you have a copy of the report already therefor an additional one from myself is unnecessary.

Sincerely
The Appraiser

So this is basically the respone I used, made a little bit less abrasive. I also added if the request came from the original client, at that time I would be able to address anything further. That was on Tuesday. Have yet to hear anything back.

 

[Metamorphic]

I actually got on the FHA list, but every time I actually consider soliciting FHA assignments I read one of these threads about all the BS complications FHA has introduced into the job and I come to my sense. Thanks for the reminder.

FHA needs to be shunned by appraisers just like the bottom feeder AMCs.

 

[Workbox]

A warm hello, ...

Just the start of the letter creeps me out for starts. Big Red Flags!

 

[444nutman]

So here is the e-mail that was just sent to me:

Property Address: zzz Anywhere ST NW Albuquerque, NM 87114 Bernalillo

A warm hello, Scott R. Marshall

As you know the FHA Case # and Appraisal Report are good for 120 days to 6 months or up until closing whichever comes first. Quicken Loans is processing the Borrowers mortgage application and we will be closing the client’s loans by using the FHA Report that was completed recently. While we currently have your report, additional information is requested, as noted below. This FHA Transfer Process is verified as a FHA/Government transaction and per HUD GUIDELINES-Handbook HUD 4150.2: "A new appraisal cannot be requested by the new lender (Quicken Loans) if the term of the appraisal is still effective (six months for existing construction and 12 months for proposed construction)". The new lender must use the appraisal already completed if it is still effective. If additional information is required, we must contact the appraiser, send the appraiser a copy of the transfer of case # (attached) and ask that they assist us. For these reasons, set forth by the FHA Authority, a “Release Letter” is not required from original lender. The FHA CASE NO. is “property specific”. The Lender of whom the FHA Case No. is assigned to, may work with the Origination Appraiser, because the loan is being closed with your report. This also applies to One Reverse Mortgage, which is a Quicken Loans mortgage program, licensed and owned by Quicken Loans.

Please provide the additional information needed for HUD to insure the appraisal report as an FHA appraisal and attach the full report to this email as soon as possible. You may also call HUD should you have any questions or concerns of the validity of this request. 1-800-543-9378. The DE (direct endorsement) while under the umbrella of Quicken Loans, is authorized by FHA Authority per attached "Assignment" to submit this request, and who is responsible and accountable for this request, whereby HUD, a government entity, requires appraisers to comply. TSI Appraisal Services, is the AMC for Quicken Loans, is a Quicken Loans Company, and represents the Quicken Loans client for this FHA-HUD required order/request. Amended report can remain in previous lender's name, in lieu of 6 month FHA requirement allowing for "1" appraisal within a 6 month period.

ADDITIONAL INFORMATION REQUESTED by QUICKEN LOANS ‘DE’ (FHA direct endorsed) UNDERWRITER:

*Please comment on if the appraiser noticed any evidence that a business was being run out of the home. Thank you!

FEES: For fees associated with this assignment, please state your Fee for approval “prior” to completion of this new assignment.

Seems like an easy enough request and a comment about there being no business being run out of the house should be sufficient but I'm always conflicted by FHA's circumvention of USPAP in some of these cases and I'm wondering what my peers would do. That and any time someone bombards me with words I'm a bit leery of the whole thing.

Tell them to call the first client and you will fix it for them. If they don't like your answer have the refer to their own letter.
Sign it.
A warm goodbye,
The Appraiser.

 

[S Zimmerman]

Just got a similar request and here is my response. Look it over and see if I missed anything or am ill-informed about procedure. Thanks!

"Here is what I have determined.

Ultimately, as an appraiser I am bound to my lender/client relationship by USPAP, foremost. While the appraisal and FHA case number can be transferred from one lender to another, the appraisal itself must remain untouched. The transfer of my appraisal and your use of my appraisal have been addressed by HUD/FHA in the FAQ’s
[url]http://portalapps.HUD.gov/FHAFAQ/controllerServlet?method=showPopup&faqId=1-6KT-12[/URL]
This simply authorizes you (by FHA) to utilize the appraisal and the data contained within, for your purposes. As an intended user, FHA/HUD does not have the authority to request or demand that I violate my original lender client relationship by altering the appraisal, either the named lender/client or the contents of the report. This applies to clarification of the appraiser’s analysis of the purchase contract.
Per HUD/FHA FAQ’s

Once a report has been prepared for named client or clients, the appraiser cannot readdress or transfer the report to another party. Simply changing the client name on the report cannot change or replace the original appraiser client relationship. 2012-2013 USPAP FAQ 120.

I know we have already discussed the readdressing or transfer but I just wanted to support my conclusion. If the client cannot be altered then the contents certainly cannot be altered for someone that is not the client and the report cannot be transferred to someone other than the client.
1) Altering the appraisal (per your clarification requests) would be in violation of my lender/client agreement with my original lender/client and would be a violation of USPAP regardless of additional intended users (FHA).
2) Delivering my appraisal to you would be a violation of USPAP.
3) Disclosing the contents (even verbally), analysis etc. to anyone other than the lender/client is a violation of USPAP.

I have attached a few documents which do their best to outline my responsibility to my lender/client. These are taken from the USPAP FAQ‘s attached to the USPAP document. Response 54 addresses your statement that because the loan is for FHA, changes to the appraisal must me made regardless of the original client. The appraiser’s obligation is to the original client, regardless of intended users. This is further supported by response 62. 115 outlines the difference between client and intended user.
So, where does that put us?
I can complete a new assignment, with XXXXX identified as the lender/client. This assignment would have a new effective date and need a new inspection but the fee would reflect the scope of work, meaning I could complete it for a reduced fee because much of the work has been previously completed. Some new analysis will be necessary because that appraisal is now almost 2 months old.
In order to complete the assignment I would need XXXXX to order an appraisal with an engagement letter identifying the subject, client/intended user, intended use (for mortgage lending purposes in a purchase transaction),fee etc.
Please let me know if you have any verifiable documentation that contradicts what I have found in my limited research time this afternoon. I would be happy to take a look at it.
Also, please understand that I am doing my best to comply with USPAP while also attempting to give you a path forward. Let me know if you would like to order an appraisal. "

What do you think?

 

[Riick]

What do you think?

I think they have to use the original appraisal until the 120 day useful life expires.

 

[Terrel L. Shields]

I'm still saying .... fake vacation message...

"This email is auto generated. We are on vacation in Belize deep in Jaguar filled jungle and will have no access to the internet until June 14th... Thank you....