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c. Additional Information Required before Commencement of an Appraisal on a
Property with an Exception from the Lead-Based Paint Poisoning Prevention Act (HECM Only) (04/29/2024)
A Property’s ability to serve as collateral for the HECM program may qualify for an exception from the remediation of defective lead-based paint surfaces. To qualify for the exception under the Lead-Based Paint Poisoning Prevention Act (LPPPA), as amended by the Residential Lead-Based Paint Hazard Reduction Act of 1992, the Mortgagee must obtain the Borrower’s certification that the Property qualifies as housing for the elderly and that no child under six years of age resides, or is expected to reside, in the home.
When performing an appraisal for a Property that meets the LPPPA exception requirements:
• the Appraiser must receive from the Mortgagee a copy of the Borrower certification that the Property qualifies for the exception;
• the repair of defective interior and exterior lead-based paint surfaces is not required to meet MPR and the appraisal report must reflect the impact of the Property’s defective lead-based paint surfaces; and
• the appraisal report must prominently include the statement: “The mortgagee has identified that they have obtained borrower certification that this property qualifies for the exception from mitigating lead-based paint hazards under the Lead-Based Paint Poisoning Prevention Act.”
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages
2. General Appraiser Requirements (03/19/2025)