Switching from FHA to conventional

[sputnam]

Certifications and intended use are different. Scope of work is different. There is no such thing as an appraisal conversion within the guidelines governing us at the present. Perhaps there should be.

The Intended Use is the same... Mortgage loan transaction. The only certs I can think of that are different are the ones that the appraiser has to manually add to an FHA appraisal.

 

[Zoe]

The effective date cannot be in the past UNLESS you are completing a retrospective appraisal.

It will be a retrospective appraisal because the new assignment is ordered AFTER the original inspection date.

Give ME the lender's phone number, $50 and I will fix this for you.

This point is very crucial why it needs to be new assignment. If it goes to a State board, the board will look at everything they can. Be same way with HUD or GSE.

Not your problem. You already completed your original assignment.

 

[Zoe]

yeah tell that to marin city...

Yeah. I won't swear that could not come into play either. Another fine reason for new assignment.

 

[Zoe]

The effective date cannot be in the past UNLESS you are completing a retrospective appraisal.

It will be a retrospective appraisal because the new assignment is ordered AFTER the original inspection date.

Give ME the lender's phone number, $50 and I will fix this for you.

Would you take $25 maybe to work it out for me? Please?



I am thinking whatever I would charge for new market data analysis, re inspection of subject, new report, etc.etc. Same if another lender contacted me and wanted me to do a conventional on it in same sort of time frame. I would go through exact same process to stay in compliance with USPAP and GSE and HUD and original lender and whoever else.

I already know they don't want a retrospective OV. I don't think it suits the problem anyway with retrospective OV.

I want it as clean as possible if anybody in the chain gets real upset with me for any reason.

 

[Dale Floyd]

The Intended Use is the same... Mortgage loan transaction. The only certs I can think of that are different are the ones that the appraiser has to manually add to an FHA appraisal.

Intended Use for an FHA assignment: The intended use of the appraisal is solely to assist FHA in assessing the risk of the property securing the FHA-insured mortgage (24 CFR 200.145(b)). FHA and the Mortgagee are the intended users of the appraisal report. (Not the same as conventional)

FHA Certifications: The FHA Appraiser does not guarantee that the property is free from defects; The appraisal establishes the value of the property for mortgage insurance purposes only; Observation of subject site and improvements. Property's compliance with HUD 4000.1. (Not the same things as conventional.)

FHA Intended Users: Includes FHA for assignments involving their insurability. (Not the same as conventional.)

 

[ZZGAMAZZ]

you didn't change it from FHA to conventional. Not your problem. Don't let lender make their problem your problem. New assignment keeps you clean.

I won't swear FHA would not give permission to switch it to another lender if the borrower wanted to change lenders, but switching from FHA to conventional is a new assignment. FHA can switch it and you not change a thing in the original appraisal report. FHA is still your client. They have more power than you.

Duplicate comment. Pleaase delete my response.

 

[ZZGAMAZZ]

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.

Peripheral question: Every so often I get an assignment for a 1004D recertification of value for a client/lender who was NOT the original client/lender. I think sneaky brokers try to obtain a name-change without paying for a new assignment. Question is: Does the fact that the 1004D form asks current AND previous client imply that a client change is acceptable?

 

[Zoe]

Peripheral question: Every so often I get an assignment for a 1004D recertification of value for a client/lender who was NOT the original client/lender. I think sneaky brokers try to obtain a name-change without paying for a new assignment. Question is: Does the fact that the 1004D form asks current AND previous client imply that a client change is acceptable?

I think it is fine for a lender to transfer an appraisal to another lender in some cases. That is different than the appraiser doing the same thing. In other words, I think lenders can do things with an appraisal that an appraiser cannot do.

So, in short, I think it is fine for you to do the 1004D if the appraisal has been transferred to another lender from your original client. You would not change your original assignment appraisal. You would not go back and put new lender on the original appraisal. You would not revise original appraisal in any way.

 

[Zoe]

I probably would get permission from original client to do the 1004D but I would not change anything on the original 1004. I would want to know if original lender was paying me for the 1004D or if the new lender was paying me so I would know who to bill for the 1004D.

 

[Dale Floyd]

The 1004D is an independent assignment with its own certification. It’s a product of compliance involving a past appraisal of reference, but it is not a conduit of review or change to the original appraisal.

Can’t call the original client, because it has a new client privilege.