will FHA accept an MLS photo?

[johnjoslin]

hello

i completed an appraisal where the there is a negative time adjustment of 2% per month because it's declining in the area. i spent a great deal of time looking at recent sales in this area because the round trip drive to this property is 3 hours. when i was reviewing sales again on the MLS after the trip, i discovered an older sale which was closer to the subject. i decided to utilize this older sale because i thought i could use the photo from MLS. is this allowed by the FHA, or did i just make a 3 hour drive mistake? the lender is asking that i use a new photo. they say HUD does not allow MLS photos. i can't find it in the manual.

also, am i allowed to revert to the original game plan and not use this sale? - just use the more recent sales? this home has some similarities, but also has a much smaller lot size and is an older sale. (no truly similar re-sales were available in the last 6 months). haven't had this one occur before.

thanks
aj

 

[Randolph Kinney]

FHA will allow an MLS photo, however, they want to see your photo too with a stated reason why you are including the MLS photo. You can't have the MLS photo only.

If you have already submitted the appraisal report, I am not sure what you can do.

 

[johnjoslin]

i did submit the appraisal. do you know where it states in the manual exactly what the rules are about this? i'm contacting the FHA santa ana office to see if i can just delete this comp. i'll let you know what they say.

aj

 

[TC]

I was told, urban myth or not, a long time ago that using an MLS photo would get you kicked off the list.

TC

 

[Willie]

hello

i completed an appraisal where the there is a negative time adjustment of 2% per month because it's declining in the area. i spent a great deal of time looking at recent sales in this area because the round trip drive to this property is 3 hours. when i was reviewing sales again on the MLS after the trip, i discovered an older sale which was closer to the subject. i decided to utilize this older sale because i thought i could use the photo from MLS. is this allowed by the FHA, or did i just make a 3 hour drive mistake? the lender is asking that i use a new photo. they say HUD does not allow MLS photos. i can't find it in the manual.

also, am i allowed to revert to the original game plan and not use this sale? - just use the more recent sales? this home has some similarities, but also has a much smaller lot size and is an older sale. (no truly similar re-sales were available in the last 6 months). haven't had this one occur before.

thanks
aj

Tell them they'll use what you give them and like it. Otherwise, it's a 3 hour mistake.

 

[The Bob]

FHA has a few things that you must do. Randolph covered photos. When you use a comp more than 6 mo old or distant, you need to comment on why you used it. If you make an adjustment above the Room Grid (View, Condition etc..), you need to comment on it. If the comp had concessions, you better list them and at the very least comment on it.

 

[Mr Rex]

John, you have just admitted publicly that you violated the pre-printed certifications attached to the forms that says you have personally inspected each of the comparables from the street, not cool and is in violation of the SOW for any report done on the Fannie forms, FHA or not.

FWIW, the FHA proptocal is in the revised Appendix D. page D-13:

Photos depicting the front view of each comparable sale utilized must be those taken by the appraiser. The photos taken by the appraiser are considered evidence of compliance with the Scope of Work of having inspected each comparable sale from the street. Use of MLS photos to exhibit comparable condition at the time of sale is acceptable; however, the appraiser must include their photos as well to document compliance.

 

[CANative]

Take the new comp out of the grid and discuss it in the narrative comments. Send a new report.

 

[johnjoslin]

i thought if i disclosed where the photo came from, it was OK. the VA allows you to do this. they don't consider this a degradation in the appraisal quality.

aj

 

[Mr Rex]

VA does not waive the requirement for you to persoanlly view the comp from the street either.