Whats the FHA rule

[ctag1003]

regarding FHA case numbers. May an appraiser do an FHA appraisal w/o an FHA case number assinged on or before the effictive date of appraisal? Can the case number be assinged post effective date of appriasal. Despite good office policy not to do the job w/o the number what is HUD policy and can you provide your source. Thanks so much!

 

[Julie Shockley]

According to HUD 4150.2 Chapter 1 Section 1-2:

"When the lender selects an appraiser from the FHA Register, the FHA Connection processes a case number for the lender. The lender may assign the appraiser before receiving the case number, but the case may not be submitted for endorsement without the case number."

Clear as mud.... right??
I just try to make a habit of having the case number before I proceed. Makes life a little easier.

 

[Mike Boyd]

According to HUD 4150.2 Chapter 1 Section 1-2:

"When the lender selects an appraiser from the FHA Register, the FHA Connection processes a case number for the lender. The lender may assign the appraiser before receiving the case number, but the case may not be submitted for endorsement without the case number."

Clear as mud.... right??
I just try to make a habit of having the case number before I proceed. Makes life a little easier.

Me too........................

 

[CindyR]

Case number is not my problem. I often wait for the case number to submit the report. Had one last month that took 2 weeks to get a case number. I don't know if the delay was with lender, borrower, or whomever but I do not require a number before I will perform appraisal not do I require them to send me the assignment sheet. I report the case number they tell me has been assigned. Why add more complexities to the assignment?

 

[Greg Bell]

Sometimes the borrower will be kicked back because of a default on another government loan.So beware of completing an appraisal and finding out the borrower cannot obtain FHA insurance.

 

[Jungle Boy]

The last one I did, the case number was assigned 16 days after the effective date of the appraisal.

The lender's UW wrote me directly, and said that the case # was assigned too much later than the effective date. She asked me to change the effective date.

About a week later (and much argueing), I decided to cave in because I wanted to keep my client.

So, I wrote up a new report (new inspection, new market research, etc).
So, now I have 2 appraisals of the same property.

BTW - the subject is located less than a mile from where I live, so I lucked out.

That's the last time I'll make that mistake. At least now I'll have a story to tell clients, if and when they pressure me to go out without a case #.

 

[Joe Milla]

I would like to chime in with a 2nd question. I have the case #, go do the inspection (condo). get back to the office and find out that the project is not on the apprroved list. I notify lender and they say their in process of getting it approved. Should I just make it subject to approval? what are your thoughts?

 

[Wil in Norcal]

I have inspected the property and completed the report. I have requested a case # from the lender on multilple occasions now and have been told it is coming. So the borrower calls me and says the lender told her he has not been able to get a hold of me (lie). I inform her that I have completed the assignment and am just awaiting a case # from her lender so I can send it in. I have collected funds, and completed the assignment, howver I can not transmit the report without the case #, any advice? If I do not get a case #, do I have to refund the money, since I cannot deliver the report? I completed the report last Saturday so this has been brewing for about a week.
I thinl in the future I will have to have a case # before I proceed. Me a quick learner

 

[AJL118]

You should not have commenced your work without a FHA case number which should be evidenced by an actual copy of the pertinent form from FHA and NEVER taken over the phone. You might be SOL. ALWAYS be suspicious when a case number is not available. Ever curious that it is always a mortgage broker that doesn't have the number??

Added: FHA volume has increased tremendously in the past couple of months, and there are still a bunch of bottom feeders lurking out there. Reagan said "Trust but verify." I wouldn't trust anybody on these FHA deals but would certainly verify ALL of them!

 

[Marcia Langley]

FHA does not "prohibit" one from accepting an assignment prior to having a case number assigned to them because in their eyes the assignment does not even exist until the case number is assigned.

But an FHA appraisal can not be delivered without the case number.

The question is not what FHA allows but what is good business for the appraiser. If you accept an assignment without the case number and do the work the possibility arises that you will never get the case number therefore you will never be able to deliver the report.

If you never deliver the report, you can't expect to be paid.

Obtaining case numbers is extremely fast and easy for clients. There is absolutely no excuse for not providing the case number at the time of ordering the appraisal.

If a client encourages you to begin work without it or delays obtaining it for some time, there can be only one reason for that. He is trying to get you to convey your appraisal verbally (either the value or the "pass FHA inspection" or both) prior to delivery and intends to cancel the order if he does not like what he hears. The result is that the client has gotten your appraisal for free and has used it to make a decision.

In today's environment it simply is not good business practice to begin work on an assignment until you have all the "client provided" data that will be necessary for completion and delivery of the assignment.