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So
many new changes! How do we cope?
OUR MLS/Realist went live with major update just as we are trying to get
UAD compliant – not great timing and several glitches costing appraisers
time. We are a hardy bunch and this too shall pass. The July 1, 2011
for carbon monoxide detectors in California caused some stir. FHA
REQUIRES appraisers to condition the report on having them, lenders have
a variety of requirements for non FHA reports. When making the
inspection appt as the borrower if they have carbon monoxide detectors
in place so it can be handled before you arrive.
With UAD we have to put in the special assessments, another tidbit that
is not easy to get, as the borrower/agent upfront for this information.
UAD requirements approaching fast
UAD here it
comes! FHA adopts UAD requirements – required for FHA reports 1/1/2012
– see FHA new mortgagee letter
FHA Mortgagee Letter 2011-30
Links to Fannie Mae, Freddie Mac, FHA
& Software Vendor's UAD Resources:
Click or paste:
www.UADhelp.com
FHA Reference guide – must have tool!http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ref/chap1
HOA reference
guide - good to know info:
http://nengland.wikidot.com/hoa-information
Thank you Sharon
Nixon for that one!
FHA how do you handle new contracts?
Randy Montrose from Santa Ana HOC said recently the appraiser is not to make
changes for events that happened after the inspection date nor use
closed sales in a FHA report that close after the effective date of the
appraisal. So what do you do when the lender wants
it changed? Randy stated FHA does not require anything but your lender
may request you “update” the appraisal – NOT acceptable per FHA. Randy
stated the only thing you can do and remain in compliance is write a
separate letter that says you looked at it, it was not available at the
time of the appraisal and was not considered. FHA does not want you to
add it to the addendum or put it in your original report at all. Here’s
where it seems some folks misunderstood what they want. Randy said you
can do a “separate addendum” but it cannot be part of the original
appraisal as USPAP would then require you resign the appraisal and they
won’t let you change it. When I told him most software today won’t let
you add a “separate addendum” it’s in or not in the report. Not like
the old days where you can something “separate” as most reports are
submitted thru portals etc. That made it clear at this point – per
Randy – you are not to add it to your original appraisal, a separate
letter is the only way you can acknowledge it. Have fun educating the
underwriters on this one!
How do you adjust for concessions?
FHA states only adjust for the effect on the sales price – no effect no
adjustment. Fannie Mae REO department says adjust for any atypical
credit (if 3% is typical and they credited 10% they want you to make a
7% adjustment).
Be sure to explain what you did
and why.
Looking for that Pest Report?
The REAA (Real Estate Appraiser Association) gave a class from a pest
inspector to keep us informed. The pest inspector talked about the
reports being filed with the state which got me wondering – can we
access them? Well yes we can find out if the home was inspected and
request a copy from this site http://www.wdopestboard.ca.gov/
Sept 2010 – FHA
Appraisal Class
Sept 16, 2010 Randy Montrose from Santa Ana HOC and Bobbi Borland also
from SA HOC put on a class covering completing today’s FHA Appraisal.
Have a question and need their
expertise? Remember they are Santa Ana so cover California
(714)796-1200 x3418 Randy
- x3453 Bobbie
DID YOU KNOW?
Rancho Murieta has some interesting features. Did you know that some
zero lot line lots may have a 99 year lease of additional land
included? Until 2 years ago, zero lot line properties could submit
plans for improvements (typically pools) to be built on the “common
area” and paid $2900 for a 99 year lease. This lease is then attached
to the title of the property and a “transfer fee” of $2900 is charged
whenever the property sells. Something to keep in mind when checking
out your comparables. Just an added note realtors in the area said this
may become available to homeowners in the area again soon.
http://www.edcgov.us/emd/apcd/gpchecklist.asp
Per El Dorado Co Air Quality Dept.
Need Detailed
Statistics for the Neighborhood?
Check out
www.neighborhoodscout.com for information on owner occupancy and much
more. Some of the data is a bit dated. I checked out Folsom and the
information was from 2000 and it noted there was no mass transit – it
did not have information on the light rail here.
*********************************
HUD Mortgagee
Letter 2010-17 dated May 5, 2010, requires the appraiser to
disclose lead base paint issues in the “Improvements Section” of the
report. The specific requirement is as follows:
“If the
appraiser observes defective paint in a home that was built before
1978, in the
physical deficiencies or adverse conditions section of the
appraisal
report, the appraiser must enter an “X” in the “Yes” box, and
note all areas
affected.
However, if the
appraiser does not observe defective paint in a home that was built
before 1978, an explanation is not required in the physical deficiencies
or adverse conditions section of the
appraisal report.”
Alternatives to
Lender work
Working for
Homeowners
I have found that if
I spend time explaining that appraisals for lenders are less expensive
because the scope of work is set and you’re working with folks that have
set expectations and speak the language.
Working with homeowners requires more time, explaining what we are doing
and why in a language they can relate to not the jargon we are use to.
They don’t know why we would show them 3 closed sales and 2 pending or
listings, or why we chose the date range we do. Why are we using
distressed sales or not using them and this can also be effected by the
definition of market value they want to use which is another 15 to 30
minutes explaining the differences and how they can affect the outcome,
then again in the report explaining it again.
I explained to one homeowner that is a decorator - you do a beautiful
job and with your experience you make many quick decisions to do your
work and make it look easy. However if you were tasked to take someone
that has never done this and explain each decision you make, the
alternatives you consider and discard, it would take you much longer
(she could totally relate to that). Then if you (she) have to write up
a report stating what you did and how you did it to be sure all
conditions were covered . . . well by then her eyes were rolling and she
didn’t think I charged enough.
That is how I have been handling it and so far it works for me.
************************************
FHA and permitted
additions
Does FHA require permits on any additions? Nowhere in the FHA handbook
will you find the requirement for permits. FHA recent class 9/16/2010
by Randy Montrose from Santa Ana HOC stressed permits are NOT required
for FHA. FHA does require the additions meet zoning requirements but
does not require permits and does NOT want appraisers to give no value
based only on permits.
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Did you
know...
SACRAMENTO,
CA - On July 1, new legislation will go into effect requiring
homeowners to install carbon monoxide detectors in every
California
home; a decision CAL FIRE officials say will save lives.
"Carbon monoxide is a silent killer,
each year claiming the lives of an average of 480 people," said
Acting State Fire Marshal Tonya Hoover. "And sending more than
20,000 people to emergency rooms across the nation."
The colorless, odorless gas is
produced from heaters, fireplaces, furnaces and many types of
appliances and cooking devices. CAL FIRE officials advise homeowners
to stay protected by installing a carbon monoxide detector on every
floor and outside of each sleeping area in the house.
CAL FIRE officials said the state's
new Carbon Monoxide Poisoning Prevention Act (Senate Bill 183)
requires owners of all existing single-family homes with an attached
garage or a fossil
fuel
source, to install CO alarm devices within the home by July 1, 2011.
Owners of multi-family leased or rental dwellings, such as apartment
buildings, have until January 1, 2013 to comply with the law.
CAL FIRE and the Office of the State
Fire Marshal have teamed up with local fire departments to host "CO
Saturday" on June 4, a special day-long safety celebration to
teach
families how to prevent carbon monoxide poisoning. For more
information, visit
www.homesafetycouncil.org.
Here is
the info from the State Fire Marshall - no need to take an
appraisers word for it.
Note the Fire Marshall states:
At what
height/location should a CO device be mounted?
According to the National Fire Protection Association (NFPA 720),
the location for effective
performance is not generally dependent on mounting height.
The density of carbon monoxide is similar to that of air at room
temperature, and carbon monoxide generally mixes readily with air.
The manufacturer’s installation instruction should also be followed.
here is the whole Q & A
http://fire.lacounty.gov/top_story_images/faq_CO.pdf
California building code for attached garages:
ATTACHED GARAGES [CBC 302, 312.4)
A fire separation is required between a residence and an attached
garage. It may be vertical or horizontal or both or of whatever form
may be required to completely separate the residence and the garage.
Where any part of the separation is horizontal, any walls or columns
which support the horizontal portion must also be protected.
Protected walls must have 5/8" type X gypsum wallboard on the garage
side of the wall. Ceilings framed at 24" o.¢. must have two layers
of 5/8" type X wallboard, but those framed at 16" o.¢. only need one
layer. Resilient channel (RC channel) may be installed @ 16" o.¢.
perpendicular to 24" o.¢. ceiling framing and covered with one layer
of 5/8" type X wallboard. Any door between the house and the garage
must be self closing and be a 20-minute rated and labeled door or a
minimum 1 3/8" thick, solid wood door. Where self closing hinges are
used, a minimum of two self-closing hinges are required.
A door from a sleeping room may not open directly into a garage.
How do you define rural?
This from the appraisal forum a while back:
Rural = Go outside naked and no one sees you.
Suburban = Go outside naked and someone calls the cops.
Urban = Go outside naked and no one cares.
This from
the Sac Business Journal:
Development
consultant Brian Holloway was sitting in a meeting last week when the
Sacramento city fire marshal mentioned that new homes will be required
to have fire sprinklers beginning next year.
Starting Jan. 1, all
single-family homes built in California will have to be outfitted with
fire-suppressing sprinklers under new building codes unanimously
reaffirmed by a state commission this year.
*****
FHA Roster Appraisers
CA
FHA Roster
@ 10/30/2009 = 5,957
@ 12/31/2009 = 6,042
@ 12/31/2010 = 6,214
@ 03/07/2011 = 6,205
@ 06/28/2011 = 6,164
AZ FHA Roster
@ 11/29/2009 = 1,206
@ 12/31/2009 = 1,203
@ 12/31/2010 = 1,197
@ 03/07/2011 = 1,192
@ 06/28/2011 = 1,189
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California Appraisers by License Type: |
|
Effective
May 1, 2010 |
Effective
May 1, 2011 |
|
AG |
3,482 |
AG |
3,424 |
|
AR |
6,496 |
AR |
6,327 |
|
AL |
3,176 |
AL |
2,590 |
|
AT |
1,708 |
AT |
1,252 |
|
Total |
14,862 |
Total |
13,593 |
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Where to send your updated or upgraded license for the FHA roster?
Fax to HUD at 202-401-0416
How to contact HUD?
hud@custhelp.com or
1-800-225-5342
-----------------
New FHA mortgagee letter 09-37 states in part “FHA
Roster Appraisers are required to review the applicable FEMA Flood
Insurance Rate Map (FIRM) and make appropriate notations on the
applicable appraisal reporting form. If the property is located within
a SFHA, the appraiser must attach a copy of the
flood map panel to the appraisal report. The appraiser must
enter the FEMA zone designation on the reporting form as well as
identify the map panel number and map date. If the property is not
shown on any map the appraiser should enter “not mapped”. It is noted
that FEMA is digitizing its maps to provide more detail and actual
pictures of existing buildings not seen on older maps which may benefit
lenders and appraisers.”
New
Property Manager for Anatolia!
The new management company is called Network Community Management. You
can read the specifics about the change here:
http://www.anatolia hoa.org/node/ 311
Thank you Ryan Lundquist for that update!
Check
out the New side link to the DEA website of homes which have had raids
for possible drug labs.
Information alert -
Special Considerations:
Boardwalk Condos in Elk Grove have an unusual note buried in their
CC&R's which require a seller to pay .005% to the builder anytime a unit
sells. Wow, that's a new one on me. As of Dec 2010 the owner occupancy
rate was reported as 76% and the delinquency rate of the HOA dues as
16.5%.
*****
Networking enhances you business!
What do you need to know to make talking to friends you have not yet met
easier???? FORM . . . . yes just remember that word and this is how it
relates.
You'll never be at a loss of what to say again. Here is topics which
will allow you to talk to anyone.
F = family
O = occupation
R = recreation
M = money
That formula, easy to remember and simple to use, will allow you to
connect with more of your friends that you haven't met yet. It's a
win/win situation, helping others feels good and brings good things into
our lives. Enjoy!
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2012-2013
7hr National USPAP Update Course
