FHA Appraisal Report & Prior Sales
When the new 4000.1 Handbook and associated Data Delivery Guide were released not long ago, astute readers noticed that FHA showed that they wanted the Comparable’s prior transactions to be reported back in time THREE YEARS, not just 1 year as per the form.
Well, guess what? That apparently was an error, because the REVISED Data Delivery Guide, Effective Nov. 5, 2015, has that corrected back to ONE YEAR, which ‘sort of’ corresponds with the info on the GSE forms.
Eagle eye readers will note there may still be an error with this! The form says
…the year prior to the date of sale…”
But FHA, in the Data Delivery Guide below says
…one year from the effective date of the appraisal…”
Those dates are NOT THE SAME.
As so often happens in the wild and wacky world, people who either write or re-write ‘new’ policies and procedures based on source documents, often don’t correctly read or comprehend what those source docs say. That just muddies the water further, as this situation attests.
I recommend that your FHA reports have a statement that comp research is included for one year back from the report Effective Date.
This is what it says on the 11/05/2015 Data Delivery Guide, page 42:
FHA Single Family Housing Appraisal Report and Data Delivery Guide B. Uniform Residential Appraisal Report Form for One Family Residential Properties
|Analysis of prior sale or transfer history of subject and comparable properties||
- Sale Price vs Appraised Value Disconnect - April 10, 2023
- Speed Regardless of Accuracy Under the Banner of Modernization - March 8, 2023
- Marin City Discrimination Case Settled - March 7, 2023
Ooops some egghead made an error, no big deal. Wish that were the same for us appraisers. We would get the hammer dropped down on us, sit in front of the board, maybe pay a fine, definitely have to take a bunch of classes, so on and so on. Not that I’ll do an FHA ever again. Keep smiling till retirement!
I don’t consider myself “astute” but I caught it. I guess this means I can stop looking for a hammer to beat the crap outta whoever added that extra layer of bullsh*t to an already tedious job! ????
Yet another example of why most government instructions are as clear as Mississippi River mud after a rain storm.
It was so funny when the other day I was reviewing some HUD Quick Tips and came across this tidbit;
Appraisers are reminded not to recommend inspections only as a means of limiting liability. The reason or indication of a particular problem must be given when requiring an inspection of any mechanical system, structural system, etc.
Oh of course not that’s why we have those expensive E&O policies. Plus who else are they going to go after besides the appraiser. Oh yea, do you think that roof has less than 2 yrs….