An appraiser’s status is automatically changed to inactive in CHUMS upon the expiration of the appraiser’s license. The appraiser is responsible for notifying HUD’s Real Estate Assessment Center (REAC) of any changes in their personal data. It is also highly recommended that appraisers submit their renewed license prior to their license’s expiration date. Refer to , dated November 24, 1999, for detailed instructions on procedure to obtain placement on the FHA Appraiser Roster and appraiser license renewal and updates.
If an appraisal assignment is made without a case number and verification that the appraiser is currently on the Roster, the lender takes the risk of not being able to obtain a case number and/or insurance if an appraiser cannot be approved or re-instated. Lenders are cautioned that appraisers can be removed at any time from the roster for disciplinary actions.
CONSTRUCTION & NEW HOMES
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It is the appraiser's responsibility to determine the exact category of "CONSTRUCTION" he/she is appraising. This is reported on page 1 of the URAR in Description of Improvements.
The "category" in which the appraiser reports the construction status is important for several reasons:
Determines the high or low-ratio status of the mortgage to be insured by FHA.
Determines the specific Conditional Commitment Requirements.
Provides the Direct Endorsement Underwriter the proper information needed to determine exactly how to process the case.
The condition of the site on the date the appraiser makes his/her on-site appraisal inspection (i.e. date of valuation) determines the project's construction status.
Construction Definitions: Click here for a complete list of items required for high/low ratio loans found in HUD Handbook 4145.1 Appendix 11.
Proposed Construction are properties approved for mortgage insurance prior to the beginning of construction. This means that the DE Statement of Appraised Value or Early Start letter has been issued by the DE Underwriter for the property prior to pouring of the footing. For high ratio loans, provide either the appraisal or Early Start letter AND at least three inspections (initial, framing and final) by a HUD fee approved panel inspector or approved local jurisdiction. When the inspections are performed by a HUD approved fee panel inspector the form HUD 92051 Compliance Inspection Report must be completed and submitted in the case binder. If the above items are not provided, evidence of an approved
Copy Printed: REVISION I
02/16/026 Revision Effective: 05-30-00