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Ch. 1
- Appraisal and Property Requirements

Ch. 2
- Mortgage Credit Guide

Ch. 3
- Misc. Policies

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Appraisal
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Chapter 1
Appraisal & Property
Requirements
Page 1-05

A: Appraisal fees

HUD no longer establishes fees or due dates. See: Mortgagee
Letter 1997-22.

The appraiser and lender will negotiate the price and
due date. This includes fees for canceled assignments, missed
appointments, etc. Collection of unpaid fees is the
responsibility of the appraiser. The Department expects
lenders to promptly pay appraisers for work
completed.

Fee is paid for market value opinions based on HUD
policy and procedure. Fees are never contingent upon the
appraiser arriving at a predetermined specific value, a
predetermined minimum value, a range or direction in value, a
value that favors the cause of any party, or the attainment of
a specific result or occurrence of a specific subsequent event
such as loan approval.

Appraisal Management Firms may charge the mortgagor a
fee for the appraisal that may encompass fees for services
performed by the firm as well as fees for the appraisal
itself. However, the total of these fees is limited to the
customary and reasonable fee for an appraisal in the market
area where the appraisal is performed. Compliance with all
aspects of RESPA is required While the owners/operators of
such Appraisal Management firms may be licensed, the appraiser
actually performing the FHA appraisal must be on HUD's
approved Roster. No "supervisory" appraisals will be accepted.
That is, the assigned licensed/approved appraiser must visit
the subject and all comparable sales and complete the
appraisal analysis. If any portion of the work involves
assistance from others, the appraiser must summarize the
extent of that assistance including providing the name (s) of
those providing assistance. Appraisal trainees are not
eligible to perform nor sign a FHA appraisal
report.

B: Inspection Fees

Inspection and Mileage Fee. HUD no longer establishes
fees. Please see Mortgagee
Letter 2006-04.

203(k) Inspections. The fees for 203(k)s are outlined
in HUD
Handbook 4240.4 Rev-2 and Mortgagee
Letter 1995-40.

C: Appraisal Forms

Mortgagee
Letter 2005-48, Revised Appendix D, Page D-1 provides
instruction on the use the four appraisal forms released by
Fannie Mae in March of 2005. They are:

Uniform Residential Appraisal Report (FNMA
1004)

Manufactured Home Appraisal Report (FNMA
1004C)

Individual Condominium Unit Appraisal Report (FNMA
1073)

Small Residential Income Property Appraisal
Report (FNMA
1025)

Use of these forms is mandatory for all appraisals
performed on or after January 1,
2006

Please see: HUD
Handbook 4150.2 Section (1-2)

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U.S. Department of Housing and Urban
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DC 20410
Telephone: (202) 708-1112
TTY: (202) 708-1455
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