Request to change USDA appraisal to FHA

[Happy Val]

Ok. I also called FHA, (yes should have done that to begin with)and they have said NO changes to the actual report is allowed. The new lender uses the old appraisal AS IS, they just make a note within FHA Connection. I was under the impression from the rule that I actually converted the report using the FHA case number. I believe I am good to go. Thanks.

 

[residentialguy]

Ok. I also called FHA, (yes should have done that to begin with)and they have said NO changes to the actual report is allowed. The new lender uses the old appraisal AS IS, they just make a note within FHA Connection. I was under the impression from the rule that I actually converted the report using the FHA case number. I believe I am good to go. Thanks.

I think you got bad advice. That is different from what I have heard. Appraisals must have an FHA case # and they must state that the subject met MPRs or MPSs. How would they know otherwise??? Call again.

 

[Happy Val]

I know, it is really confusing that nobody seems to be on the same page. Per FHA, and he confirmed with his supervisor, that the Lender is responsible for making the documentation in the FHA Connection and obtaining an FHA case #. In my original report, since it was USDA, it already has te FHA verbage in it. I can, however, make an addendum dated currently to be attached to the original appraisal, however, NOTHING in the original appraisal is to be changed. The appraisal however remains the same without the FHA case number, it just stays in the binder. So the new lender does not need me at all. Apparently I WAS over-thinking it. Should have gone with my gut instinct.

 

[sputnam]

USDA to FHA? Only change I can think of would be adding the FHA case #.

 

[EddieB]

USDA to FHA? Only change I can think of would be adding the FHA case #.

Have to add FHA as the intended user.

 

[residentialguy]

Have to add FHA as the intended user.

...and FHA likes their meets FHA MPR verbiage added to the report.

 

[EddieB]

I am interested in hearing back from the OP. From what I understand from reading the thread, the folder at FHA will have an USDA appraisal with an effective date over two months, a borrower name change, contract change and a lender name change.

I can't see how that would be acceptable to the HOC rep.

 

[Happy Val]

From what FHA told me yesterday, the binder will have the original USDA appraisal as I wrote it back in April. No changes will be made to it at all, not even the FHA case number, intended user comments, nothing. The Lender adds a comment in the FHA Connection when applying for the FHA case number and all the notes are kept in the binder for the loan. The new lender has asked me to submit an addendum noting the new lender, FHA case number, and added borrower which they will put in the binder with the original appraisal (I received an ok from the original lender, fyi). Again, the original appraisal is not changed whatsoever. All the work is done by the new lender in FHA connection, and I was not really needed at all. The new addendum that they are requesting is by the new lender and not required by FHA at all.

 

[residentialguy]

I much prefer the addendum addition to changing the report.

They're not the client and they don't need it changed, nor should you change it. Your report is intended for the use of the client and once completed cannot be reassigned or readdressed to another party. It cannot be changed by the appraiser for another lender or use. While they can use another lender's appraisal, their ability to transfer from one lender to another lender does NOT transfer the contractual relationship between the appraiser and the original client of the appraiser.

IOW, don't do squat for the new lender.

 

[Happy Val]

I have no issues with helping the new client out as much as I can, legally. They were willing to pay me money for my services, but in the long run, I said I would give them the addendum at no charge (it took me 5 minutes). They appreciated it and I think I may have a new client down the road.