Questions For FHA

[Jo Ann Meyer Stratton]

All appraisals for a new FHA loan are completed "subject to", that is what I am sure the Denver HOC was referring to and they did not realize you were asking about a REO. REO appraisals are a totally different animal with their own set of guidelines, see the Mortgagee Letter I referred to. There have been some recent changes regarding the Marketing and Management Companies that handle the REO properties. Some times those M&M companies get confused--basically a REO appraisal is completed just like any other FHA appraisal, referring to the 4150.2 and the National HOC Reference Guide in the same way--and then Mortgagee Letter 00-27 has the additional guidelines that a normal FHA appraisal would not follow.

If you are dealing with a M&M contractor--have ML 00-27 memorized, you might have to quote that ML back to them.

 

[Alan Magill]

Originally posted by Jo Ann Meyer Stratton@Jun 1 2005, 05:50 PM
All appraisals for a new FHA loan are completed "subject to", that is what I am sure the Denver HOC was referring to and they did not realize you were asking about a REO. REO appraisals are a totally different animal with their own set of guidelines, see the Mortgagee Letter I referred to. There have been some recent changes regarding the Marketing and Management Companies that handle the REO properties. Some times those M&M companies get confused--basically a REO appraisal is completed just like any other FHA appraisal, referring to the 4150.2 and the National HOC Reference Guide in the same way--and then Mortgagee Letter 00-27 has the additional guidelines that a normal FHA appraisal would not follow.

If you are dealing with a M&M contractor--have ML 00-27 memorized, you might have to quote that ML back to them.

I specifically disclosed that it was a foreclosure. I don't know what happened. I now know the truth. I appreciate the mortgage letter reference. I will never make that mistake again. Funny I have been appraising for 7 years and this never came up. Thanks

 

[James Kim]

FHA case number still assigned?

Case numbers still assigned for FHA appraisals?

 

[Couch Potato]

Yes.

Case numbers still assigned for FHA appraisals?

Yes, case numbers are still assigned and you are not suppose to deliver the appraisal without the case number on it.

 

[CANative]

I thought the onus was on the client to have a case number before submitting the loan to FHA/HUD and the requirement was to have an appraisal prepared to FHA/HUD guidelines and supplementals by an appraiser on the HUD roster.

 

[Greg Bell]

FHA and HUD REO'S do not utilize the VC Sheet.The only form required is ENVIROMENTAL COMPLIANCE.Appraisal is done "AS IS" with an addendum for repairs.No cosmetic repairs , just MPR repairs.(See handbook).The lender will supply you with and FHA case number.Do NOT submit report without the FHA CASE NUMBER.

 

[Couch Potato]

Yes.

I thought the onus was on the client to have a case number before submitting the loan to FHA/HUD and the requirement was to have an appraisal prepared to FHA/HUD guidelines and supplementals by an appraiser on the HUD roster.

Your right, and part of preparing an appraisal report to FHA/HUD guidelines is to place that case number in the upper right corner of the report and to not send the report without the case number.

 

[CANative]

You're right. I just re-read Appendix D and there it is in black and white. My dad and brother and I used to be adamant about the case number and then some companies doing HECM's stopped sending case numbers. I asked the question on this board and Brad Pack stated that it was not REQUIRED for the appraiser to complete and send the report.

Thanks!

 

[Brad Pack]

You're right. I just re-read Appendix D and there it is in black and white. My dad and brother and I used to be adamant about the case number and then some companies doing HECM's stopped sending case numbers. I asked the question on this board and Brad Pack stated that it was not REQUIRED for the appraiser to complete and send the report.

Thanks!

Greg-

It was not required for a number of years.
Remember the federal government furlough/shutdown in 1995? Mortgagee Letter 95-55 allowed lenders/appaisers to originate cases/appraisals without an FHA case number. This was not rectified (changed back) until Mortgagee Letter 05-48 (effective 01/01/06). When did you ask me the original question?

 

[CANative]

Sorry Brad. My post wasn't really complete. This was discussed well over a year ago. Not catching the revision was my mistake.