FHA updates its new construction exhibit requirements for lenders

The Federal Housing Administration (FHA) has revised the list of architectural exhibits needed for single-family properties one year old or less.

Effective immediately, lenders need not obtain, retain or submit to FHA construction plans and specifications, including:

• Plot Plan
• Floor Plan
• Exterior Elevations, Sections and Details Specifications,
• form HUD-92005 (Description of Materials)

The appraiser may obtain these documents from the builder.

Appraisers, per the requirements of the Uniform Standards of Professional Appraisal Practices (USPAP), are already required to retain “plans, specifications or other documentation sufficient to identify the extent and character of the proposed improvements” (USPAP Standards Rule 1-2) and, thus, retention by the lender is redundant and an unnecessary burden.

Click this link for the complete Mortgagee Letter 2006-33  dated 12/21/2006.

Thanks to Cliff Odom of the Alabama Appraiser Forum for this document.