FHA Updates Data Delivery Guide and Changes Comp Sales History from Three Years to One Year

HUD just released an update to their Appraisal Report and Data Delivery Guide.  This is a great resource from HUD that identifies every field on the four appraisal reports they use and what their requirements and guidelines are for those fields.  The link to the new Guide is below. You should consider dragging this link out to your desktop for quick reference when you have a question about FHA/HUD appraisal requirements and guidelines.

So exactly what did they update TJ?  Great question…

The new language appears in the Guide on page 42:

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

 

Field

Protocol

Analysis of prior sale or transfer history of subject and comparable properties

Report the date(s) of prior sale(s) or transfer(s) of the subject that occurred within three years of the effective date of the appraisal.

Report the date(s) of prior sale(s) or transfer(s) of each comparable that occurred within one year of the effective date of the appraisal.

Report prior transfers regardless of conveyance type or consideration amount. If the prior transfer or offering is not relevant to the current transaction or offering, explain why.

For new construction, include any prior transfers of the land as vacant.

If the properties are located in a “non-disclosure state,” the appraiser is responsible for reporting the information that is reasonably obtainable.

Report the analysis of prior sale or transfer history of the subject and comparable properties.

The appraiser must evaluate the relevancy of prior transfers to the current sale or offering of the comparable.

The appraiser must describe the difference between recent transfers versus the current sale or offering, and the effect on the appraisal problem.

The appraiser must provide an analysis of the prior sale or transfer history of the subject property and comparable properties in the report. Simply reporting a transaction is not a sufficient analysis or explanation to the reader.

FHA recognizes the limitations of form reports and the UAD format. If multiple prior transactions exist for the subject property within three years prior to the effective date of the appraisal, or one year for comparables, the appraiser must analyze and report those prior transactions.

Here is the link to the update:

http://portal.hud.gov/hudportal/documents/huddoc?id=SFH_POLI_APPR_RPT_FIN.PDF

Also remember to use HUD’s new 4000.1 Single Family Housing Policy Handbook for all things FHA appraisal related.

http://portal.hud.gov/hudportal/documents/huddoc?id=40001HSGH.pdf

Have a great weekend,

Tj