USDA/Rural Housing HUD/FHA question

[Griffin]

I recently did an appraisal that is a USDA/Rural Housing type loan and they require there to be an FHA type appraisal (report and requirments are the same only there is no FHA case number). There is an unused underground oil tank on property that had recently been pumped because the seller has instlled new gas heat system. When I was at the property I noted an odor and visual of oil type on the ground near the vent and fill pipe. I noted this in report and stated that it needed to be addressed by qualified expert. so report was subject to this.

Now, today the mortgage company has letter from oil company (haven't seen it as of yet but they are faxing to me) that says they have inspected and that it is ok. Mortgage company wants to know if I can now state the "subject meets HUD/FHA minimum property requirements" in the report and resend. My question is can I do that after the fact or is it just their responsibility to make a call on that and it no longer rests in my hands. Any guidance on if I did wrong or right or what I do now is appreciated.

 

[PropertyEconomics]

I believe the underwriter should take a look at the report supplied to them, and they can make a decision whether to waive further inspection or to accept the report they have. I dont think its your call at this point.

As an aside, what qualifies an oil company to do environmental analysis????

 

[RSW]

Your original report should have had that comment in it and the report should have been marked subject to an inspection by a qualified professional. The use the EAs as you would a normal FHA appraisal that is make subject to an inspection.

PE is correct. The DE UW is the one that accepts or rejects the letter.

Now, you may be able to go back and correct your original apprasial report since it was not completed per HUD/FHA protocol by adding the comment. Remember, the signed date will need to be changed.

 

[Ray Miller]

Not on my life would I do it. I would want to see at least a Enviormental Screen by a certified expert sign and then and only then would I place a copy of it in the report.

A letter from some oil company who is CYAing there *** is not good enough for me. I spent $50,000 on a phase one to clean up a bit of oil that went down a floor drain in the ranch shop. Buy the time all was said and done they went down only four feet and found clear dirt. the fear was the spiled oil gotten in the underground water supply and was dumping into the La Crosse River a good mile away. They were taling hundreds of thousands of dollars to correct the problem at first. I got a book about 8 inches thick with no nude pictures of women in it and it cost me $50K. (that was the finial report)

 

[Griffin]

My report was subject to the inspection. Why would I have put the statement in the original report that the property meets HUD/FHA minimum property requirements if I did not know if it did? That is why it was conditioned for an EXPERT to take on the oil tank issue.

The mortgage company wants me to now add the HUD/FHA comment to the report since they are accepting this oil company inspection. I am balking at the fact that now it is back ON ME to state that it meets the HUD/FHA minimum requirements. How does everyone else handle the issue of calling for a qualified inspection of an issue? I mean, after the qualified inspector has done their thing and supplies document stating all is well? Do other appraisers go back to the original report and state that it meets HUD/FHA minimum requirements? Or did they put that in the report originally when they did not know if it did meet requirements? I know the UW has to accept/decline the letter from the oil tank issue but I need to know specifially about my part in it after the oil tank has been cleared with this letter. Do I change my report to reflect that subject meets HUD/FHA minimum property requirements? I am concerned about my reporting part/responsibility in the whole thing.

I am not trying to confuse the issue but I am now confused myself.

 

[Mr Rex]

The verbiage that the subject meets FHA MPR is required for all USDA appraisals. When the appraisal is subject to, put something like "Upon inspection of the underground oil tank and surrounding areas by a qualified expert and certification by the expert that there is no soil contamination, the tank is not leaking, and has been properly cleaned and filled with an inert filler etc, the subject will meet FHA MPR." or something like that.:icon_idea:

 

[Griffin]

Ok that sounds good but how do I handle putting that in a report that was completed two weeks ago? I guess my answer will be no to the mortgage company? I cannot add HUD/FHA MPR comment to the original report. Adding that comment originally at the time would have been good but it won't fly for me to add it now. They are looking for the report to have that HUD/FHA MPR statement in it now that they have the oil company letter.

You know, the magical statement that lets them know all is good with the world....and the heat is off of them and on the appraiser and oil tank people.

 

[RSW]

Ok that sounds good but how do I handle putting that in a report that was completed two weeks ago? I guess my answer will be no to the mortgage company? I cannot add HUD/FHA MPR comment to the original report. Adding that comment originally at the time would have been good but it won't fly for me to add it now. They are looking for the report to have that HUD/FHA MPR statement in it now that they have the oil company letter.

You know, the magical statement that lets them know all is good with the world....and the heat is off of them and on the appraiser and oil tank people.

The statement would be a correction to the orginal appraisal report which is allowed per HUD/FHA. Keep your comments in about it being made subject to an inspection and add the comment. I would use a comment something like this:

The subject currently meets HUD/FHA standards or requirements or will meet HUD/FHA standards or requirements after the required repairs and or inspections have been completed. The call for additional repairs may be necessary if found during the inspection of the subject property.