Wednesday, March 31, 2010

New FHA Mortgagee Letter 2010-13

To all FHA roster appraisers:

SUBJECT: Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005)

This Mortgagee Letter (ML 2010-13) provides additional guidance to that contained in Mortgagee Letter 2009-51, which advised of the Federal Housing Administration’s (FHA) adoption of the Appraisal Update and/or Completion Report Form. Specifically, this Mortgagee Letter:

1. Provides two additional prohibitions on use of the Appraisal Update Report

2. Clarifies that the Market Conditions Form must be completed in conjunction with the Appraisal Update Form (This means a ‘new’ MC form must be researched and included, as of the 1004D Effective Date.)

3. Defines the validity periods for appraisals with and without an Appraisal Update Report…

To read this mortgagee letter and any attachments in their entirety, please visit: view the 2010 letters and click on the letter of your choice.

From Dave Towne: How to do a 1004D when there is a ‘second client’ involved:

If the first (primary) client orders a 1004D, you can complete that form (plus the ‘new’ 1040MC Form) and turn it in without attaching it to the original report and sending the entire package (as long as the client accepts that.) You ‘incorporate by reference’ the original report, and you should include that wording on the form.

If a secondary client is now using the original report, and asks for a 1004D, you MUST attach the original report to the 1004D (plus the ‘new’ 1040MC Form) and submit the entire package.

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