Question on FHA Appraisals

[PDXOregon]

There are specific situation where the 4150.2 handbook states to STOP the process and notify the client. In other words, FHA wants to be informed and you should NOT proceed.

 

[residentialguy]

There are specific situation where the 4150.2 handbook states to STOP the process and notify the client. In other words, FHA wants to be informed and you should NOT proceed.

Yeah, wondering when that was going to pop up. I'd be happy to do that...just as soon as FHA agrees to cover my expenses at that point. :new_all_coholic:

Sounds all good, but
1. contact the client? hahahahaaaa...good luck. "hello, phone monkey...
2. It stalls the process about 1-2 weeks. You go home, leave messages, finally get an answer
3. now you have to reschedule your inspection, then finish the report.
4. good luck with that addtional trip charge or the adequate cancelation fee, which ever way it goes.

Not to mention, you go over the due date by a 1-2 weeks just one time and you're history.

 

[smackodu]

I did an inspection about a year ago for an AMC and found the specific zoning was commercial and the property was located between 2 car dealerships. The property was located in an area where there was a mixture of residential and commerical. When I got to the property I found it was in need of extensive repairs. This was for an FHA reverse mortgage and I felt bad for the owners who appeared to be struggling. I called the AMC as I knew it would not go FHA and the owners could use the funds. A few months later I get a phone call from an FHA investigator and I explained what I did and how much I made on the deal....I found out the from the investigator the AMC pocketed the entire fee minus my inspection fee.

 

[Kajala]

These replies are very interesting. I agree that the AMC's have corrupted things badly. Like I stated, I am NOT an AMC. I am the go-between for the appraiser and the MB.

The reason I asked this question is because I had a recent situation and I've been trying to understand it better from the appraiser's POV.

The appraiser on a recent property has told me that if he goes into a property that won't pass FHA guidelines, he is supposed to leave and notify me so we can have those items fixed prior to him completing the inspection.

Now, we did have a property inspection report done and honestly, I feel it was the LO's job to review that prior to sending me their request for an appraisal, but aside from that, I was surprised when he told me this because I've had other appraiser go to properties, complete the report 'Subject to repairs' and then list what they found was wrong and also state in the report that they recommend a property inspection report.

I don't expect the appraiser to do the job of an inspector, of course, but it was that he stated he wasn't supposed to complete the inspection per USPAP that confused me.

If anyone has any insight as to what he might have been referring to, let me know. I would love to look it up in USPAP so I can understand better.

 

[Mike Kennedy]

There are specific situation where the 4150.2 handbook states to STOP the process and notify the client. In other words, FHA wants to be informed and you should NOT proceed.

http://www.HUD.gov/offices/adm/hudclips/handbooks/hsgh/4150.2/41502c2HSGH.pdf

 

[Michigan CG]

.............I would love to look it up in USPAP so I can understand better.

USPAP does not address this.

 

[ptoad]

What happened to common courtesy and professionalism? Why would I produce a report for a client that the client will never be able to use. I think if EVERYONE involved in the particular case treated each other as professionals the road would be much easier to navigate, now and in the future.

Don't forget that the lender uses the appraisal as part of the process to deny HUD/FHA financing. The lender should require the completed appraisal, except in specific instances, to make sure that they are in compliance. If they are audited and do not have an appraisal in their file to support their decision to deny financing they get in trouble.

 

[Mark K]

I don't expect the appraiser to do the job of an inspector, of course, but it was that he stated he wasn't supposed to complete the inspection per USPAP that confused me.

As mentioned, USPAP does not address this issue.

FHA guidelines might but as you can see, there are varying opinions on that as well.

Personally if I had an appraiser on a list that didn't know the difference between the two, I'd remove him from the list.