Appraisal Report and Data Delivery Guide

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Appraisal Report and Data Delivery Guide

Transcript Of Appraisal Report and Data Delivery Guide

Appraisal Report and Data Delivery Guide
Issued on 07/10/2019 Effecti[vMe oonnt0h9]/[0D9a/y2]0,1[9Year]]
[Version Number/Pub #/Form] #]

FHA Single Family Housing Appraisal Report and Data Delivery Guide Table of Contents
FHA Single Family Housing Appraisal Report and Data Delivery Guide
TABLE OF CONTENTS
APPRAISAL REPORT AND DATA DELIVERY TO FHA.............................................. 1
UNIFORM RESIDENTIAL APPRAISAL REPORT FOR ONE FAMILY RESIDENTIAL PROPERTIES ............................................................................................ 2
Subject Section.......................................................................................................................... 2 Contract Section........................................................................................................................ 5 Neighborhood Section .............................................................................................................. 6 a. Neighborhood Characteristics..............................................................................................6 b. One-Unit Housing Trends....................................................................................................7 c. One-Unit Housing ................................................................................................................7 d. Present Land Use % .............................................................................................................7 e. Narrative Comments ............................................................................................................8 Site Analysis Section ................................................................................................................ 8 Leasehold Interest/Ground Rent Section ................................................................................ 11 Description of Improvements Section .................................................................................... 12 a. General Description ...........................................................................................................12 b. Reporting Requirements for Attic......................................................................................12 c. Foundation .........................................................................................................................13 d. Mechanical Systems...........................................................................................................14 e. Exterior Materials/Condition .............................................................................................14 f. Amenities/Features ............................................................................................................15 g. Interior Materials/Condition ..............................................................................................15 h. Car Storage.........................................................................................................................16 i. Appliances..........................................................................................................................16 j. Room Count and Gross Living Area .................................................................................16 k. Narrative Comments ..........................................................................................................17 Sales Comparison Approach Section...................................................................................... 19 a. Comparable Data Pool .......................................................................................................19 b. Sales Adjustment Grid .......................................................................................................20 c. Value Adjustments.............................................................................................................21 d. Reporting Prior Sales .........................................................................................................30 Reconciliation Section ............................................................................................................ 32 a. Conditions of Value Estimate ............................................................................................32 Additional Comments Section ................................................................................................ 34 Cost Approach Section ........................................................................................................... 35 Income Approach Section....................................................................................................... 36 Planned Unit Development Information Section .................................................................... 37 Appraiser/Client Information.................................................................................................. 38
MANUFACTURED HOME APPRAISAL REPORT....................................................... 40
Subject Section........................................................................................................................ 40 Contract Section...................................................................................................................... 42
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FHA Single Family Housing Appraisal Report and Data Delivery Guide Table of Contents
Neighborhood Section ............................................................................................................ 44 a. Neighborhood Characteristics............................................................................................44 b. Manufactured Housing Trends ..........................................................................................44 c. Manufactured Housing.......................................................................................................44 d. Present Land Use % ...........................................................................................................45 e. Narrative Comments ..........................................................................................................45 Site Section ............................................................................................................................. 45 HUD Data Plate Section ......................................................................................................... 47 Improvements Section ............................................................................................................ 48 a. General Description ...........................................................................................................48 b. Reporting Requirements for Attic......................................................................................49 c. Foundation .........................................................................................................................50 d. Mechanical Systems...........................................................................................................51 e. Exterior Materials/Condition .............................................................................................51 f. Amenities/Features ............................................................................................................52 g. Interior Materials/Condition ..............................................................................................52 h. Car Storage.........................................................................................................................53 i. Appliances..........................................................................................................................53 j. Room Count and Gross Living Area .................................................................................54 k. Narrative Comments ..........................................................................................................54 Cost Approach Section ........................................................................................................... 56 Sales Comparison Approach Section...................................................................................... 59 a. Comparable Data Pool .......................................................................................................59 b. Sales Adjustment Grid .......................................................................................................60 c. Value Adjustments.............................................................................................................61 d. Reporting Prior Sales .........................................................................................................66 Reconciliation Section ............................................................................................................ 68 a. Conditions of Value Estimate ............................................................................................68 Additional Comments Section ................................................................................................ 70 Income Approach Section....................................................................................................... 70 Planned Unit Development Information Section .................................................................... 70 Appraiser/Client Information.................................................................................................. 72
INDIVIDUAL CONDOMINIUM UNIT APPRAISAL REPORT ................................... 74
Subject Property Section......................................................................................................... 74 Contract Data Section ............................................................................................................. 77 Neighborhood Section ............................................................................................................ 78 a. Neighborhood Characteristics............................................................................................78 b. Condominium Unit Housing Trends..................................................................................79 c. Condominium Housing ......................................................................................................79 d. Present Land Use % ...........................................................................................................79 e. Narrative Comments ..........................................................................................................80 Project Site Description Section ............................................................................................. 80 Leasehold Interest/Ground Rent Section ................................................................................ 83 Project Information Description Section ................................................................................ 84 a. General Description ...........................................................................................................84
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FHA Single Family Housing Appraisal Report and Data Delivery Guide Table of Contents
b. Subject Phase .....................................................................................................................85 c. If Project Completed ..........................................................................................................85 d. If Project Incomplete..........................................................................................................86 e. Narrative Comments ..........................................................................................................87 Project Analysis Section ......................................................................................................... 88 Unit Description Section......................................................................................................... 89 a. General Description ...........................................................................................................89 b. Interior Materials/Condition ..............................................................................................90 c. Amenities ...........................................................................................................................90 d. Appliances..........................................................................................................................91 e. Car Storage.........................................................................................................................91 f. Room Count and Gross Living Area .................................................................................91 g. Narrative Comments ..........................................................................................................92 Prior Sale History and Sale Data Section ............................................................................... 94 Sales Comparison Approach Section...................................................................................... 95 a. Comparable Data Pool .......................................................................................................96 b. Sales Adjustment Grid .......................................................................................................96 c. Value Adjustments.............................................................................................................97 Income Approach Section..................................................................................................... 106 Reconciliation Section .......................................................................................................... 106 a. Conditions of Value Estimate Section .............................................................................107 Additional Comments Section .............................................................................................. 109 Appraiser/Client Information................................................................................................ 109
SMALL RESIDENTIAL INCOME PROPERTY (TWO TO FOUR UNITS) APPRAISAL REPORT ...................................................................................................... 111
Subject Property Data Section .............................................................................................. 111 Contract Section.................................................................................................................... 113 Neighborhood Analysis Section ........................................................................................... 114 a. Neighborhood Characteristics..........................................................................................114 b. 2-4 Unit Housing Trends .................................................................................................115 c. 2-4 Unit Housing..............................................................................................................115 d. Present Land Use % .........................................................................................................116 e. Narrative Comments ........................................................................................................116 Site Section ........................................................................................................................... 116 Leasehold Interest/Ground Rent Section .............................................................................. 118 Description of Improvements Section .................................................................................. 118 a. General Description .........................................................................................................118 b. Attic..................................................................................................................................119 c. Foundation .......................................................................................................................120 d. Mechanical Systems.........................................................................................................120 e. Exterior Materials/Condition ...........................................................................................121 f. Amenities/Features ..........................................................................................................122 g. Interior Materials/Condition ............................................................................................122 h. Car Storage.......................................................................................................................123 i. Appliances........................................................................................................................123
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FHA Single Family Housing Appraisal Report and Data Delivery Guide Table of Contents
j. Unit Room Count and Gross Living Area .......................................................................123 k. Narrative Comments ........................................................................................................124 Comparable Rental Data Section .......................................................................................... 125 Subject Rent Schedule Section ............................................................................................. 126 Prior Sale History Section..................................................................................................... 127 Sales Comparison Approach Section.................................................................................... 129 a. Comparable Data Pool .....................................................................................................130 b. Sales Adjustment Grid .....................................................................................................130 c. Value Adjustments...........................................................................................................132 Income Approach Section..................................................................................................... 136 Reconciliation Section .......................................................................................................... 137 a. Conditions of Value Estimate ..........................................................................................137 Additional Comments Section .............................................................................................. 139 Cost Approach Section ......................................................................................................... 139 Planned Unit Development Information Section .................................................................. 141 Appraiser/Client Information................................................................................................ 142 APPRAISAL UPDATE AND/OR COMPLETION REPORT ....................................... 144 Subject Section...................................................................................................................... 144 Summary Appraisal Update Report Section ......................................................................... 145 Certification of Completion Section ..................................................................................... 146 Signatures Section................................................................................................................. 146 Required Exhibits.................................................................................................................. 147
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FHA Single Family Housing Appraisal Report and Data Delivery Guide A. Appraisal Report and Data Delivery to FHA
APPRAISAL REPORT AND DATA DELIVERY TO FHA This document provides guidance to Appraisers who are preparing residential appraisal reports utilizing the industry standard forms and to lenders who are submitting the Appraiser’s completed reports to FHA. FHA utilizes the Electronic Appraisal Delivery (EAD) system, which provides portal access to all HUD approved lenders. The system requires electronic appraisal files to be uploaded to a central location, processed, and checked against an FHA defined rule set. The original file, as well as the results of the scoring process will then be securely transferred to HUD servers. FHA accepts appraisals in the Mortgage Industry Standards Maintenance Organization (MISMO) 2.6 with embedded Portable Document Format (PDF). The EAD shall apply business rules, edits and handle overrides, based on FHA’s requirements for rule sets that are applied to appraisals. The portal securely transmits discrepancies, findings, and other feedback messages to users based on FHA’s requirements. HUD/FHA for Appraisers is found in https://www.hud.gov/program_offices/housing/sfh/handbook_4000-1.
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FHA Single Family Housing Appraisal Report and Data Delivery Guide B. Uniform Residential Appraisal Report for One Family Residential Properties

UNIFORM RESIDENTIAL APPRAISAL REPORT FOR ONE FAMILY RESIDENTIAL PROPERTIES
This section provides specific instructions for completing the Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR).
This report is designed to report an appraisal of a one-unit Property or a one-unit Property with an accessory unit, including a unit in a Planned Unit Development (PUD), based on an interior and exterior inspection of the subject Property. It is not designed to report an appraisal of Manufactured Housing or a unit in a condominium or cooperative project.
Subject Section
This section provides the data to identify the Property and the parties to the appraisal process. The FHA case number together with the Borrower and/or property information will be supplied by the Mortgagee/client who engages the Appraiser.
The following table provides instruction for completing the “Subject” section of the report.

Field FHA Case Number/ Appraiser Additional File Number Appraiser’s File Number Property Address
City

Protocol
• Insert the FHA case number at the top of the upper right-hand corner to correspond with the XML label /VALUATION_RESPONSE/REPORT/@AppraiserAdditionalFileIdentifier. This must be formatted as xxx-xxxxxxx, numeric only. (Example 1234589034)
• In most software packages, this is formatted as an additional file number. • This is the Appraiser’s choice of file number/name. • This field occurs on every page of the report and must be consistent. • The placement of the header on the report varies from vendor to vendor. • Enter the property address, conforming to the latest Mailing Standards of
the United States Postal Service and subsequent updates. • The following address elements must be included in this field:
o street number o street name (including applicable pre-directional indicator, suffix,
and/or post-directional indicator) o address unit designator and number (if applicable) • This data is referenced more than once on the report and must be represented consistently. • Enter the city. The following address element must be included in this field: City (Postal Address City). • This data is referenced more than once on the report and must be represented consistently.

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FHA Single Family Housing Appraisal Report and Data Delivery Guide B. Uniform Residential Appraisal Report for One Family Residential Properties

Field State
Zip Code
Borrower Owner of Public Record County
Legal Description
Assessor’s Parcel #
Tax Year
R.E. Taxes $
Neighborhood Name Map Reference

Protocol
• Enter the state. The following address element must be included in this field: USPS two-letter state or territory representation.
• This data is referenced more than once on the report and must be represented consistently.
• Enter the Zone Improvement Plan (ZIP) Code. The following address element must be included in this field: five-digit ZIP Code or ZIP+4 Code (with or without the dash).
• This data is referenced more than once on the report and must be represented consistently.
• Enter the name of the Borrower(s). • Enter the name of the owner as listed in public records.
• Enter the county. If the subject Property is not located in any county (e.g., the subject Property is located in an independent city), enter the name of the local municipality or district in which the Property is located.
• Enter the legal description of the Property. • The four types of legal descriptions are: lot and block system; geodetic
survey; government survey system; and metes and bounds description. • If the space provided is insufficient, enter this information with the heading
“Legal Description” in the “Additional Comments” section of the report or attach this information as an addendum. • Enter the parcel number assigned by the local tax assessor. • For those areas that do not have an assessor’s parcel number, enter the tax identification number. • If more than one parcel number is applicable, each must be listed, separated by a semicolon. • Enter the current tax year used by the locale, e.g., the fiscal year or the actual year. • Date format: yyyy. • Enter the dollar amount of the annual real estate taxes, including all relevant taxes (school district tax, fire district tax, etc.). • Use whole dollars only. • Enter the name of the subdivision, if applicable, or the commonly known local neighborhood designation. • If the subject Property is in a PUD, provide the name of the development. • Enter the location map reference, page number and coordinates from the source used. • This reference should relate to the location maps most commonly used in the locale.

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FHA Single Family Housing Appraisal Report and Data Delivery Guide B. Uniform Residential Appraisal Report for One Family Residential Properties

Field Census Tract
Occupant Special Assessments $
PUD HOA $
Property Rights Appraised Assignment Type
Lender/Client Intended Use and Intended Users Address

Protocol
• Enter the census tract number. • Census tract numbers have four digits and may have a two-digit decimal
suffix. • Where the basic census tract number is less than four digits, the Census
Bureau includes leading zeroes except when displaying numbers on maps or printed reports. • To uniquely identify a census tract, a two-digit state code and three-digit county code precede the four- or six-digit census tract number. • The Census Bureau has an internet resource guide for locating census information at www.census.gov. • Mark the box signifying the occupancy status at the time of the appraisal. • Report the dollar amount of special assessments for the subject Property. • Special assessments can include municipal bond debt for off-site improvements. • Larger than typical special assessments may affect marketability. • Use whole dollars only. • If there are no special assessments applicable to the subject Property, the Appraiser must enter 0 in this data field. • Check the box if the Property is located in a PUD. • Enter the dollar amount of the Homeowners’ Association (HOA) fee and mark the box indicating if the fees are paid “per year” or “per month.” • Use whole dollars only. • If there are no mandatory HOA fees applicable to the subject Property, the Appraiser must enter 0 in this data field. • Mark the appropriate box indicating the property rights appraised for the subject Property as of the date of the appraisal. • “Other” includes Land Trust. • Mark the appropriate box indicating the assignment type: o Purchase Transaction o Refinance Transaction o Other (describe) • Enter the name of the Mortgagee/client that ordered and will receive the appraisal report. • Enter the intended use of the appraisal report. • Enter FHA as the Intended User of the appraisal report.
• Enter the Mortgagee/client’s address. • This data is referenced more than once on the report and must be
represented consistently to the extent the available space permits. • The printed version of this field must appear completely in this location on
the report but may be truncated in the other locations.

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FHA Single Family Housing Appraisal Report and Data Delivery Guide B. Uniform Residential Appraisal Report for One Family Residential Properties

Field
UAD Days On Market Description
Currently offered for sale or offered for sale in last 12 months Report data source(s) used, offering price(s), and date(s)

Protocol
• If there are no current or prior offerings in the 12 months prior to the effective date of the appraisal, then this field must indicate the data sources used to establish this fact.
• Mark the appropriate box indicating whether or not the subject is currently offered for sale or has been offered for sale in the 12-month period prior to the effective date of the appraisal.
• Complete this field regardless of whether the Property is currently offered for sale or has been for sale in the 12 months preceding the date of the appraisal. • Report the data source.
• If the subject is currently offered for sale or has been offered for sale in the last 12 months: • Enter the Days on Market in Uniform Appraisal Dataset (UAD) format. • Report all relevant listing activity, including any prior listings within the last 12 months. • Enter the listing date, offering price, and terms of current and all prior listings. Report changes to prices and terms, with the dates of those changes. • Identify the source(s) used.

Contract Section
This section must be completed when the appraisal assignment involves a purchase transaction, otherwise leave blank.
The following table provides instruction for completing the “Contract” section of the report.

Field Analyze Contract for Sale
Contract Price $

Protocol
• Mark the appropriate box to identify whether the Appraiser did or did not analyze the contract for sale for the subject purchase transaction.
• Explain the results of the analysis (terms and conditions) of the contract for sale or why the analysis was not performed.
• The analysis may include a reference to the number of pages contained in the contract for sale provided.
• Identify the source(s) used, price(s) and date(s) of current or prior listings. • Enter the final agreed upon contract price. • Use whole dollars only.

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ReportAppraisal ReportSaleFieldSubject Property