paint chipping

[Tudor]

I'm sure you are correct.

However, I am hearing from realtors that sell a lot of REOs that many of their pre-1978 listings are being sold with FHA financing, but often the appraiser is not calling for obvious peeling paint to be corrected. (??)

One agent told me that she was now under the impression that this type of peeling paint does not have to be corrected for FHA loans anymore, so obviously, some lenders and appraisers are overlooking this now.

See what opening the floodgates does?

The last I checked (which was 2 weeks ago) peeling paint on pre 1978 properties is still an issue that FHA wants conditioned for. Most likely the unethical are trying to influence the new influx of FHA appraisers.

 

[Tim Hicks (Texas)]

See what opening the floodgates does?

The last I checked (which was 2 weeks ago) peeling paint on pre 1978 properties is still an issue that FHA wants conditioned for. Most likely the unethical are trying to influence the new influx of FHA appraisers.

Bingo! I keep getting told that HUD has relaxed its guidelines by loan officers. When I explain that lead based paint and health and safety issues are not relaxed, they go into their usual confused state.

 

[Mr Rex]

I did one yesterday, I was the 2nd appraiser on a flip. Flip had done a great job cosmetically, but the drainage at the rear sloped toward the foundation, Water heater wasn't working, HVAC unit showed obvious signs of misfiring (burn marks on the outside of unit), no access provided to part of the attic (over a carport conversion), exposed wire ends in attic clearly vsible form the pull down stairs, shed appeared to encroach on property next door etc. First appraiser gave it a clean bill of health.

FWIW, it was a VA foreclosure, doesn't VA require positive drainage away from the foundation? If so, I guess the VA guy missed it too a few years ago.:new_smile-l:

 

[Tudor]

Bingo! I keep getting told that HUD has relaxed its guidelines by loan officers. When I explain that lead based paint and health and safety issues are not relaxed, they go into their usual confused state.

I was told the exact thing, which is why I decided to get it straight from the horses mouth.

 

[Michael Tipton]

Refer your "confused" LOs to Mortgagee Letter 2005-48.

Lead paint (pre-1978 construction) is still listed as a risk to the health and safety of the occupants. It also includes all improvements(outbuildings, fences, etc)

LOs and REALTORS must not be staying up on recent current events. I believe there was a major toy recall recently due to the Chinese manufacturers using lead paint finishes.

 

[Lloyd Bonafide]

Refer your "confused" LOs to Mortgagee Letter 2005-48.

Lead paint (pre-1978 construction) is still listed as a risk to the health and safety of the occupants. It also includes all improvements(outbuildings, fences, etc)

LOs and REALTORS must not be staying up on recent current events. I believe there was a major toy recall recently due to the Chinese manufacturers using lead paint finishes.

You're right, of course, about the lead paint issue. Realtors and loan officers probably don't care, though, if the FHA appraiser does not call for the chipping paint to be corrected.

I think what's happening is that some new FHA appraisers don't even know about it.

 

[TexasRed]

The underwriter forwarded me a paper from HUD today that waves the chipped paint inspection on a reverse mortgage if no children under 7 live in the house.

 

[TC]

The underwriter forwarded me a paper from HUD today that waves the chipped paint inspection on a reverse mortgage if no children under 7 live in the house.

If that's true, I guess now we have to verify ages.
Hey, you with the lunch box, show me some ID!

 

[TexasRed]

The owner fills out the form from the lender then the lender sends it to you. I have never seen this before. I kept the note about the chipped paint and added the paper to the report before I sent it back.

 

[Mr Rex]

In that case, it should be a CB4 requirement, and you would not need to be involved, and neither acknowledged or accepted that this was acceptable. A UW decision. Beyond the appraisers SOW.