LO Wants Another FHA Appraisal.

[RSW]

Just got a phone call from a loan officer about an FHA appraisal. The LO stated she had an appraisal that needed to be done because the first appraiser droped the ball. She said a case # has already been assigned to the subject property. I asked her if the first appraiser had already completed the appraisal and she said, "Yes." I told her I could not do another appraisal and that the original appraisal was stuck with that case #. I guess she was not happy with the value or maybe something was mentioned in the report that would not pass through without question. I declined the order.


Scott

 

[Lee Lansford]

Just got a phone call from a loan officer about an FHA appraisal. The LO stated she had an appraisal that needed to be done because the first appraiser droped the ball. She said a case # has already been assigned to the subject property. I asked her if the first appraiser had already completed the appraisal and she said, "Yes." I told her I could not do another appraisal and that the original appraisal was stuck with that case #. I guess she was not happy with the value or maybe something was mentioned in the report that would not pass through without question. I declined the order.


Scott

Yeah, the appraiser "dropped the ball"...didn't "hit the magic number".

 

[redfish]

I had a request for an exterior FHA.

 

[RSW]

I had a request for an exterior FHA.

That's most likely a result of the Mortgagee Letter 2008-09.

 

[ZZGAMAZZ]

RSW: How can an appraiser know if the order is bogus as the OP described, or a legitimate 2008-09 follow-up appraisal?

 

[Michael Tipton]

RSW: How can an appraiser know if the order is bogus as the OP described, or a legitimate 2008-09 follow-up appraisal?

Copied from Mortgagee Letter 2008-09. Visit the attached link.

Specifically, for mortgage amounts that will exceed the January 1, 2008 conforming limit of $417,000, FHA is establishing a second appraisal requirement for loans on properties in declining areas, and limiting the loan-to-value for cash-out refinances. These requirements are further described below and are effective for all mortgages with FHA case number assignments made on or after the date of this mortgagee letter.

When is a Second Appraisal Required? A second appraisal will be required when:

· The loan amount, excluding the upfront mortgage insurance premium, will exceed $417,000, and
· The LTV[1], excluding upfront MIP, equals or exceeds 95%, and
· The property is determined as being in a declining market.


Loan-to-Value is defined as the mortgage amount, excluding any financed upfront mortgage insurance premium, divided by the lower of the adjusted sales price or the appraiser’s estimate of the property’s value.


Who can perform the second appraisal?

The second independent appraisal must be completed by a FHA roster appraiser selected by the Direct Endorsement lender that is underwriting the mortgage. The lender independently engages the appraiser and is not to request a second case number through FHA Connection. The fee for the appraisal may be passed onto the borrower as any other closing cost.

What form must be used for the second appraisal?

If the property is a one-unit detached house, the second appraisal may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055; any repair requirements noted in the original interior-exterior appraisal report must be adhered to if the second appraisal is an exterior-only appraisal. Condominium units including detached site-condominiums; manufactured housing; and 2-4 unit properties are not eligible for exterior-only second appraisals and must be completed on the appropriate appraisal form.

http://www.HUD.gov/offices/adm/hudclips/letters/mortgagee/08-09ml.doc

 

[Riick]

WHO at the FHA is watching this and other threads on what is happening to FHA mortgage originations?

What is the FHA hotline? Does it exist?
Or.. as some have reported - when notifying FHA of ummmm "discrepancies" in the process - they reach "Mr. DontCare" who suggests calling "Ms. WhoGivesadamm"

 

[RSW]

ZZ,

I am well aware of what triggers a second appraisal. The LO gave me the address of the subject property and I knowthere are no $417,000 homes in that subdivision. I doubt very seriously is there are many FHA appraisals done on high dollar homes in my work area. I've not heard of any. We don's have a declining market around here either. It is for the most part stable unlike other areas of the country.

Also, I asked leading questions in which the answers told me she was fishing for a better appraisal.


Scott

 

[RSW]

Sorry for the mis-spelling. I just finished washing my truck and my fingers are numb.

 

[Caterina Platt]

RSW,

Have you received the order with the case #? If you can get that information, or perhaps FHA can search it from an address/borrower name? I'd certainly report to your area HOC. I had to do the very same last week.

What has been happening is when the first appraisal comes in and the LO doesn't 'like' the report for whatever reason (declining market, value, adverse conditions noted), they fail to log the report. This leaves the case number free to be reassigned to the next, hopefully less diligent appraiser who'll hit their number or ignore the other issue(s). The LO says something like the first appraiser was on vacation, declined the assignment,... whatever lie they come up with. It's a blatant abuse of the system and the Denver HOC was interested in following up when I contacted them.