Switching from FHA to conventional

[Zoe]

sounds like an AMC move to me.

 

[sputnam]

yeah. I thought about that. Effective date would not necessarily need to be changed. None the less, it is a new assignment whether switched from FHA to conventional or conventional to FHA. Reason being is because intended user has changed. Just changing the name on the report won't work and keep it clean. Previous assignment would need to be disclosed in the new assignment.

If it were me, I would contact FHA and let them know what I was doing and make sure they were okay with it. Your client and liability are shifting. New assignment.

Your client's liability is shifting also. New assignment.

Wrong. FHA isn't the Client. FHA is an additional Intended User. There is no need to check with them.

 

[Zoe]

Wrong. FHA isn't the Client. FHA is an additional Intended User. There is no need to check with them.

You can see it that way. I don't. Makes no difference how you see it. It is a new assignment to me period.

You would agree FHA has the ability to transfer an FHA loan to another lender without your permission. I am sure we can agree on that fact. In that case, you don't have to do a thing.

 

[Zoe]

Your missing my points on how liability is shifting in the new assignment request. Don't worry about whether you see FHA as a client or not. It is a new assignment.

 

[Zoe]

100% new assignment.

New work file, new inspection/new effective date (wonder if the house burned down....). If you use the OLD date, that would be a retrospective, and the client doesn't want that.

CLONE the existing report, change dates, intended user(s), change photos, check sales (from old effective date to new effective date, maybe a pending closed), sign with today's date and submit.

Charge what YOU want to charge for your time and effort, whatever that is worth to YOU.

yes. Keep it clean. CYA as they say. CYA means "cover your azz". Don't worry about the lender because they can go somewhere else. Don't worry about the borrower. Focus on real property rights and your azz.

Liability shifting is reason for me being so head strong about new assignment.

New assignment. This is my fee. If you don't want to pay that. I am very busy at the moment. Please send me your next assignment request. Okay?

 

[Zoe]

Again, me personally, I would let HUD know what I was doing. If they said we don't want you doing that, I would decline the assignment. Lender, thank you for the request for a new assignment. FHA said they don't want me doing it. Send me your next one. Thank you very much for the opportunity.

 

[Dale Floyd]

We’ve beaten this to death, but some still get hung up on logistics.

Yes, it is a new assignment. There really is no such thing as a converted appraisal;

Yes, you can use the prior effective date and inspection information, if the client requests the new assignment to be “as of that prior effective and inspection date”. (Important they request it that way.). If they don’t, start all over from scratch;

Yes, you can negotiate the fee;

Yes, you must disclose prior services;

Yes, lenders can use retrospective reports within the confines of their lending policies. (Most use a 6 month timeframe.);

No, there is nothing in USPAP prohibiting the appraiser from doing retrospective appraisals, which is what this is.

 

[Zoe]

We’ve beaten this to death, but some still get hung up on logistics.

Yes, it is a new assignment. There really is no such thing as a converted appraisal;

Yes, you can use the prior effective date and inspection information, if the client requests the new assignment to be “as of that prior effective and inspection date”. (Important they request it that way.). If they don’t, start all over from scratch;

Yes, you can negotiate the fee;

Yes, you must disclose prior services;

Yes, lenders can use retrospective reports within the confines of their lending policies. (Most use a 6 month timeframe.);

No, there is nothing in USPAP prohibiting the appraiser from doing retrospective appraisals, which is what this is.

Yes. I still say this horse should already be in grave. The shifting liability is what makes it so adamant to me. I understand it is not required me contact FHA. However, I would out of courtesy if you are so pleased. I understand the SOW in the original assignment that I performed. I am responsible for the original assignment SOW and new assignment SOW.

The liability has shifted majorly in the new assignment request.

 

[Zoe]

Okay, lender, I have your best interests at heart. Do you want a retrospective or would you like me to do a new effective date?

Your answer will change my SOW in the new assignment?

This is my fee for new assignment.

I am sorry if we can't agree. I am very busy at the moment.

a/k/a "dont waste my time. LOL

 

[Zoe]

Here is a clue. If borrower went FHA and decided to go conventional?

Can lender just shift the appraisal?

See?

Throw that basketball back in client's court. New assignment is cleanest way. CYA (cover your a**}.

I know exactly what USPAP says on who is responsible for SOW.

Where is my honey Joan Trice when I need her?