THANKS! to appraiser Dave Towne for finding the latest HUD/FHA issued update to the Valuation Protocol FAQ document dated Feb. 28, 2012.
Here are just a few of the topics covered:
Mortgagee Letter 2005-48 states that a termite inspection is no longer automatically required unless there is evidence of active infestation, it is mandated by the state or local jurisdiction, is customary to the area, or at the lender’s discretion. Can you provide more clarification of exactly how lenders should apply "customary to the area?"
Is the appraiser still required to report well, septic and property line distances on an addendum to the URAR or is this only required when problems are noted? How is the lender to determine if these distance requirements are met if the appraiser is not required to identify?
Is it mandatory for a well/septic report to show distance to lot lines?
Is a well located in the basement okay? If not allowed by FHA, what if local laws permit it?
Does the appraiser determine what inspections are required or does the lender determine that?
Are oil tank certifications still required for underground tanks with no evidence of surface contamination?
Noted lead based paint still seems to be an issue that is unclear in the minds of some appraisers and lenders. Should the lender automatically call for painting only if the home is pre-1978, or should further measures be taken in all cases?
When is the cost approach required for an FHA appraisal?
If there is a manufactured home on the property, does it have to meet FHA standards if it is only being used for storage or has a family member living in it, but is NOT paying rent?
Please discuss the ongoing treatment of garage door openers that don't reverse with pressure. What about the sensor beam that stops the door when something breaks down?
Does the appraiser need to state the remaining economic life or just effective age?
Does the appraiser have to change the appraisal based on the “new” information?
Can information regarding sales of properties after the effective date of the appraisal be used?
Should data on the 1004MC mirror that in the neighborhood section of the appraisal report?
Can FHA Roster appraisers use foreclosures, short sales and other distressed sales?