Appraisers' Free Forum

Are any of you all doing FHA's? I've never done them and been busy up until this year. My volume is 1/3 off a normal year this year. Thank goodness my wife went back to work after an 8 year layoff. I'm hearing that the FHA will be picking up some of the subprime stuff after the meltdown. Maybe it will help me get some more business. Any thoughts? Has it helped you all?

I don't know if FHA will be picking up with them outlawing most down payment assistance programs. It seemed every FHA appraisal I did had down payment assistance.

That sucks Daffy. That sounds pathetic. No money down, = risky loan = risky appraisal. Hum.

I suspect FHA volume will experience a bump as a result of the sub prime fall out.

TB

I'm getting so that I dread FHA requests. They've turned into the new subprime market, I think. Most of the ones I've received have come from out-of-state MB's trying to finance a deadbeat with no money.

Jim, I personally wouldn't care if they are trying to qualify a baboon in a cage at the zoo. What I hate about sub work is that, unfortunately, they always seem to want to roll the dp in the purahse price, as a 'gift' from the seller.
This always takes a property that is on the edge anyway and pushes it over.
Nehemiah is about the worst program ever created, and just shows government ignorance when it comes to real estate and typical business.

Well, Ben, I wouldn't care either, except for the MB's attitude that my job is to get his loan to go through. They're a general PITA, and argue more than any other type of client.

Point taken. And just remember the most dangerous MB out there. He's the one advertising his religion.

No kidding, Ben.

We have been FHA approved for years and are seeing an increase in interest in FHA appraisals.

"Maybe it will help me get some more business. Any thoughts? Has it helped you all?"

I use to do a lot of FHA work.

Back then...you had to take a class & pass a 50 question exam.

FHA work was plentiful many years ago & we were able to charge more than a typical assignment because, of all the additional FHA requirements.

Scuttlebutt is, FHA orders are really picking up as a result of the subprime meltdown.

After a 3+/- year hiatus, I've been getting orders for FHA financing again. I've been doing reviews of HUD REO appraisals for some time now and that work while not high volume, has been steady.

I have not had any more FHA requests than typical

Just about everything I have touched recently was FHA. Probably 75%. In the past, 15-20%. When you count the return trips for the CIRs, I kinda like it. Did one this week 4 return trips @ $75 per (about 1.5 miles from home), for DEU required repairs under the new protocol (I only observed and reported, the DEU required the repairs), so not a bad gig. PIA factor is covered in the original fee, the return trips are gravy IMHO. Some folks beech and moan about going back, but I don't mind seat time and a few pics @ reasonable rates, typically higher than the per hour rate of actually doing the report. YMMV.

I agree with Mr. Rex: The return trips are good money. But I'm getting to where I hate FHA assignments. The lingering dregs of the subprime market are polluting the well.

Just had one this week: The borrower had bought the house in 1996 for $46,000. Refi'd in 2000 for $102K, and again a year ago for $112K. No significant changes in the property. Our annual appreciation rate is about 2.5%/year here in this rural county. This year, the borrower wants $139K.

Turned it down. I don't want the hassle that's sure to follow. The house is just down the street from me, and I don't want to have to have the owner arrested.

Jim, please replace the batteries in your calculator. 112K is not 2.5% higher than 102K, and 139K is not 17.5% higher than 102K. Therefore, the inflation rate must be higher than what you stated, surely the owner and LO can not both be wrong.

Can't say I blame you for your reluctance.