Book Review

FHA-Combo

The Complete HUD-FHA Combo Set
Vol. 1 & Vol. 2


Compiled by Henry S. Harrison, MAI, ASA, IFAS, DREI
Vol. 1 & Vol. 2 Combo Set •  $67.50 + S&H
Publication Date: 2013

phone: 1-800-243-4545
www.formsandworms.com

Any appraiser doing FHA appraisals needs to have a copy of "FHA Handbook HUD-4150.2" and Chapter 4 from FHA Handbook 4155.2 (only chapter 4 apples to appraisers), the 28 mortgage letters that update the Handbooks and the over 150 of the Frequently Asked Questions supplied by the FHA to help understand their publications.

I want to take this opportunity to share with you my experience in compiling these two FHA Handbooks. While this information is available free of charge from the FHA site, downloading it all is a nightmarish undertaking.

My first plan was to combine this updated 2013 material into one book as I had done in the past. Unfortunately, the FHA has expanded this material so much that it will no longer fit into one volume using my printer – the same printer I have used for many years to print my books because of their good quality, fair prices and reliable delivery time.

If you would like to get a free copy of the FHA Handbook HUD-4150.2 by downloading it from the FHA site here is what you do:
1. Go the the FHA site at www.fha.gov
2. Click on the left hand column under Audience Groups click on "Appraisers"
3. Click on the left hand column under Find Answers click on "Mortgagee Letters and Handbooks
4. Click on the right hand column under Reference Materials "Handbook HUD-4150.2

Here is where I ran into trouble. On this page there is a choice of downloading the handbook as a word fillable form or a PDF version. I could not get the "word fillable form" version to work so I resorted to downloading each of the individual nine PDF files. The result is a manual of about 350 pages.

Unfortunately, this is not all you need. You also need to download from the lenders handbook "Chapter 4 "Property Valuation and Appraisals" from HUD Handbook 4155.2. The subjects of interest to appraisers in this Chapter 4 are as follows:

  • the purpose of property valuation
  • lender responsibility for appraisers
  • appraisal management company (AMC) and third party organization fees
  • verification of compliance with property requirements
  • lender responsibility for determination of property eligibility and accuracy of appraisal value
  • variation in property appraisal and underwriting process
  • property eligiblity for FHA insurance
  • property eligibility under section 223 (e)
  • compliance inspection requirements
  • appraisal assignment to ensure appraiser competency
  • preventing improper influences on appraisers
  • prohibition of mortgage brokers and commission based lender staff from the appraisal process
  • appraiser independence safeguards
  • appraiser selection in the FHA connection, and
  • DE underwriter responsibility for quality of appraisal report.

If you would like to get a free copy of the FHA Handbook HUD-4155.2 by downloading it from the FHA site here is what you do:
  1. Go the the FHA site at www.fha.gov
  2. Click on the left hand column under Audience Groups click on "Appraisers"
  3. Click on the left hand column under Find Answers click on "Mortgagee Letters and Handbooks"
  4. Click on the right hand column under Reference Materials "Handbook HUD-4150.2"

The FHA Handbooks are now over four year old and there are 28 mortgage letters that have been issued. All of them are needed to update these FHA Handbooks. Instead of issuing a new edition of their publications, the FHA has issued 150 FAQs that update the texts:
  • HUD ML 2012-23: Loan Origination Procedure Q&A: 4 pages
  • FAQ: Natural Disaster Protocols: 1 page
  • FAQs UAD and Other Appr Forms ML 11-30: Special FHA UAD requirements
  • L 11-07 Elimination of Master Appr Rpt.: When case numbers can no longer be assigned
  • FAQs Declared Disaster Area ML 12-23
  • ML 12-23  Declared Disaster Areas: Included with mortgage letters
  • FAQs Disaster Loans Before 11/16: FAQ; Natural Disaster Protocols, 1 page chart
  • FAQs UAD and Other Appr Forms ML 11-30: Special FHA UAD requirements
  • ML 11-07 Elimination of Master Appr Rpt,: When case numbers can no longer be assigned
  • FAQs Lead Based Paint:Clarifies who can inspect for lead when the property was built before 1978
  • FAQs Reasonable Fees/Time: Spells out the FHA's position on how reasonable fees are determined.
  • FAQs Meth Remediation: Clarifies what to do when there is methamphetamine contamination
  • FAQs Appraiser Valuation: 37 pages covering 16 subjects
  • FAQs Appraiser Roster Link not active as of 8/8/2013
  • FAQs , Update ML 09-51: Claries by whom and when an update report may be prepared.
  • FAQs Appraisal Portability ML 09-29: Clarifies whom and when a second appraisal report is required
  • FAQs Appraiser Independence ML 09-28: 6 pages clarifying by whom and when fees can be collected.

The bottom line is this: Any appraiser who is doing FHA appraisals needs to have a copy of "FHA Handbook HUD-4150.2" and Chapter 4 from FHA Handbook 4155.2 (only chapter 4 apples to appraisers), the 28 mortgage letters that update the Handbooks and the over 150 of Frequently Asked Questions supplied by the FHA to help understand their publications. I have compiled these documents and sell them as a combined set with included CD-ROMs of all of the resources for your convenience.

The Complete HUD-FHA Combo Set is available from
Forms and Worms 1-800 243-4545 or www.formsandworms.com for 25%-off when you buy the combination.

HSH
askhenryharrison@revmag.com


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