HUD ML 2010 17
May 6th, 2010
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.
If you should have any questions concerning this Mortgagee Letter, call 1-800-CALLFHA. Persons with hearing or speech impairments may access this number via TDD/TTY, by calling 1-877-TDD-2HUD (1-877-833-2483).
Sincerely,
David H. Stevens
Assistant Secretary for Housing –
Federal Housing Commissioner
To view the online Mortgagee Letter, please click here
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