Over the past year, there has been confusion as to whom the appraiser can communicate concerning the appraisal report. According to the Federal Housing Administration (FHA), the only person the appraiser can directly discuss the appraisal with is the Direct Endorsement (DE) Underwriter who is responsible for the quality of the appraisal report.
Quality control in an appraisal report IS the communication of all aspects of a property that affect its overall value. The quality of the report is ensured when the FHA appraiser discloses hazardous conditions that jeopardize the health and safety of the occupants, adequacy of the physical improvements or marketability of the property.
Typical property conditions requiring further inspection and/or repair include:
• Active Infestation of wood destroying insects/organisms
• Evidence of settlement that could affect structural soundness
• Inoperative or inadequate plumbing, heating or electrical systems
• Deterioration of materials that cause the roof to leak
• Evidence of standing water, cracked masonry or other foundation damage
• Hazardous materials on or around the site
After inspecting the property, the appraiser should discuss all the items in the appraisal report that require immediate repair and those items that enhance and improve the overall value of the property. By openly communicating the deficiencies as well as the condition of the property, the appraiser protects the borrower, lender, FHA, and themselves. This, in essence, is the key to a winning solution for everyone.
To purchase the FHA materials that will improve the appraisal process and decease your liability when appraising homes for FHA, contact OREP below.
http://www.workingre.com/workingre/fha-course-checklist-emanual.html
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