Category: Federal Housing Administration

USDA FHA Confusion Getting it Right - Imagecredit Flickr - Brad Montgomery 4

USDA FHA Let’s Get it Right

USDA has it right! FHA appraisers, Thanks to TJ McCarthy, a Chicago based appraiser and current web master for the Illinois state appraiser association ICAP, for providing this interesting bit of news. What this document says is that USDA expects the Home PURCHASER (the loan applicant) to obtain a “whole house inspection” in advance of submitting their loan application. This will be effective Oct. 1, 2015. Inspection can be paid by the seller. This ‘whole house inspection’ is NOT DONE BY AN APPRAISER. It is to be done by someone licensed or certified as a home inspector, who then provides a written report...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

FHA Appraisers - Important Reporting Items 27

FHA Appraisers – Important Reporting Items

Important FHA Reporting Items FHA Appraisers, The new HUD/FHA 4000.1 manual, in reality a very large BOOK, is said (by FHA) to have everything in it we need to know, and comply with when doing FHA appraisal reports. We’ve all been amped up about the FHA 4000.1 Handbook changes.  It DOES NOT have everything you need to comply with. FHA has a second BOOK – The Single Family Housing Appraisal Report and Delivery Guide. On page 117, it details how FHA wants prior sales reported for the subject and for COMPARABLES. It is a change to their current procedure –...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

FHA Appraiser & Property Requirements Webinar 3

FHA Appraiser & Property Requirements Webinar

Free FHA webinar for appraisers on the FHA Appraiser Roster, the appraiser and appraisal-related policy changes contained in the Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) impact how to perform and complete an appraisal for an FHA-insured property. Attend this webinar for an overview of these changes, centered on the core concepts of “Observe, Analyze, and Report”. During this webinar session, FHA subject matter experts will provide an overview of the structure, format, and changes contained in the SF Handbook’s Appraiser and Property Requirements section, effective for case numbers assigned on or after September 14, 2015. Additionally,...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

FHA Attic Inspections - FHA appraisers - Imagecredit Flickr - Jamie Beverly 2

FHA Attic Inspections

FHA Attic Requirements FHA Appraisers, FHA has always had a requirement for appraisers to inspect ‘attics’. However, HUD/FHA does not have a real definition of ‘attic’ in their documentation. Because there is no definition of ‘attic’, assumptions have been made by FHA and appraisers that the ‘attic’ includes any space above the ceiling and below the roof inside dwellings – despite that space in modern design homes typically not having any flooring. An appraiser in WA State, not me, was concerned about this inspection requirement and sent an inquiry question to HUD/FHA. Their response is below. Be sure to read this...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

FHA vs USPAP - FHA vs USPAP - FHA requirements – Appraisers Caught in Catch 22 111

FHA Requirements vs USPAP

FHA Requirements vs USPAP – Appraisers Caught in Catch 22 Excerpt The new FHA Handbook will become effective on September 14, 2015. There has been much discussion of the implications of changing “should” to “must” in thousands of examples in the Handbook. As a Board member of the Arizona Association of Real Estate Appraisers as well as being on the FHA Roster, I have taken a good hard look at these requirements and then, it hit me as I was teaching the Uniform Standards of Professional Appraisal Practice (USPAP) which is the basis of appraisal standards for every appraiser in...

AAREA / AMC / Appraisal / Appraisal Management Companies / Appraisal Organizations / Arizona Association of Real Estate Appraisers

Appraiser-Client Relationship - Imagecredit Flickr - Dennis Hill 15

Don’t You Value our Relationship?

Relationships, we all have them.  And despite the efforts of Dodd Frank to destroy them, we have somehow managed to keep them. A big bank that I had a great relationship dropped me because their portal system decided there were too many appraisers last year and left me hanging. No orders for a year. Now they’re busy and want me to do appraisals. Great! But between the portal fees, underwriting charges, title surpluses, software charges, destination charges, taxes, etc. the fee works out to be substantially lower than most work I have. They asked me “don’t you value our relationship?”. I replied where...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

What is Gross Living Area and What Does it Include 29

What is Gross Living Area (GLA)?

What is Gross Living Area and What Does it Include? Appraisers, There are certain properties where aspects of Gross Living Area (GLA) might not be obvious. It’s more confusing when the selling real estate agents lump all “living space” together, because that’s what they are selling, or when the county assessor includes basements with upper level areas. These include homes with a detached ADU, additional rec room or sleeping space above a garage, additional living space with roof attached to the primary dwelling via covered breezeway, basement living spaces with separate entry, etc. Fannie Mae has a giant book called...

American Measurement Standard / American National Standards Institute / AMS / ANSI / Appraisal / Appraisal News

FHA Appraisers Increased Liability & Responsibilty with New FHA Requirements 27

FHA Appraisers Increased Liability with New Requirements

FHA Appraisers Increased Liability & Responsibility with New FHA Requirements Excerpt New FHA Requirements Put More Responsibility and More Liability on FHA Appraisers After reviewing the new HUD handbook, my overall conclusion is that there were not many changes to the overall requirements other than the word MUST. The prior handbook was a list of items that should be completed and verified whereas the updated HUD handbook clearly states that the properties MUST meet these items and the appraiser MUST verify the items in question. The following is a list of FHA requirements that MUST be completed and verified by the appraiser....

AAREA / Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Arizona Association of Real Estate Appraisers

FHA Delays Handbook Implementation Date 1

FHA Delays Handbook Implementation Date

FHA Extends the Single Family Housing Policy Handbook Implementation Effective Date June 15, 2015 Handbook Implementation Date Extended 90-days to Give Lenders More Time to Operationalize On April 30, 2015, the Federal Housing Administration (FHA) announced that it has extended the effective date for the policies contained within its new Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1) from June 15, 2015 to September14, 2015. FHA recognizes that there currently are a number of competing initiatives occurring simultaneously in the mortgage industry that may be challenging mortgagee and other industry partner resources. For this reason, FHA is extending...

Appraisal / Appraisal News / Appraisers News / Federal Housing Administration / FHA / HUD

Are Appraisers Redbox or Blockbuster 7

What are Appraisers? Red Box or Block Buster Video?

How do we move to be more of a Red Box? I stopped at a Sheetz to get gas. As I was standing there I noticed a Red Box Machine which had a steady flow of traffic. Next door was an old closed Block Buster Video.  Hmm…  When my kids were little it was a big treat to go to that Block Buster and rent a movie. We had to wait in line 5 to 10 minutes  and now it’s closed. But the Red Box machine is steadily pumping out DVDs. So I got to thinking. What are appraisers? Are we...

AI / Appraisal / Appraisal Institute / Appraisal News / Appraisal Organizations / Appraisers News

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