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a. Information Required before Commencement of Appraisal (04/10/2025)
The Appraiser must obtain all of the following from the Mortgagee before beginning an appraisal:
• a complete copy of the executed sales contract for the subject, if a purchase transaction;
• the land lease, if applicable (see Leasehold Interest);
• surveys or legal descriptions, if available;
• any other property-related legal documents contained in the loan file; and
• a point of contact and contact information for the Mortgagee so that the Appraiser can communicate any noncompliance issues.
The effective date of the appraisal cannot be before the FHA case number assignment date unless the Mortgagee certifies that the appraisal was ordered for conventional lending or government-guaranteed loan purposes and was performed pursuant to FHA guidelines.
When using an appraisal ordered originally for conventional lending or government- guaranteed loan purposes before the case number assignment date:
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages
1. Commencement of the Appraisal
• The appraisal must be in full compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), which requires that this be classified as a new assignment. The intended use of the appraisal must indicate that it is solely to assist FHA in assessing the risk of the Property securing the FHA-insured Mortgage. Additionally, FHA and the Mortgagee must be indicated as the intended users of the appraisal report.
• If the Appraiser determines that the scope of work is met with regard to FHA policy including MPR, MPS, and USPAP compliance, and further determines that a reinspection of the Property is not necessary, the effective date of the appraisal may be the date of the original inspection.
• If an FHA-compliant inspection is required, the date of the new inspection will become the effective date of the new appraisal.