Important Updates

May 5, 2010:Lead Based Paint; HUD-ML 2010-17
May 6th, 2010 2:18 PM

May 5, 2010

MORTGAGEE LETTER 2010-17

TO: ALL FHA APPROVED MORTGAGEES

ALL FHA ROSTER APPRAISERS

SUBJECT: UPDATED HUD REO LEAD-BASED PAINT APPRAISAL REPORTING REQUIREMENTS

The purpose of this Mortgagee Letter is to amend Handbook 4150.2, Valuation Analysis for Home Mortgage Insurance for Single Family One-to-Four Unit Dwellings, Appendix A. The amendment will affect how appraisers disclose defective paint in HUD’s real estate owned (REO) properties. This change is effective on all appraisals performed on HUD REO properties with an effective date on or after June 1, 2010. HUD will only order a lead-based paint evaluation for HUD REO properties constructed before 1978, and purchased with FHA-insured financing.

Handbook Change

Appendix A, Section A-3, bullet two is being replaced in its entirety with the language below:

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.


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Posted by Douglas E. Hendricks on May 6th, 2010 2:18 PMPost a Comment

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Your blog has so much info on it, and Its so important to know as much as you can. I am in school for Real Estate Appraisal, and by reading your blog is keeping me up to date with procedures That are unfortunately not found in the books. Do yall take on trainees?? I will be taking my licensing test in July! Thanks

Posted by Heather on May 8th, 2010 1:19 AM
I appreciate your compliments! Yes, we are always looking for highly motivated and highly educated candidates. Please feel free to email or fax your resume any time. Also, it is recommended that you resubmit each time you complete a new course and/or exam. Good luck on the exam!

Posted by Douglas E. Hendricks on May 11th, 2010 9:42 AM

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