FHA Single Family Housing Policy Handbook 4000.1, Part I — c. Post-appraisal Requirements (05/09/2022)

FHA Single Family Housing Policy Handbook 4000.1, Part I — c. Post-appraisal Requirements (05/09/2022)

c. Post-appraisal Requirements (05/09/2022) The Appraiser must comply with the following requirements and restrictions for its FHA business operations in addition to continuing to operate in full compliance with the eligibility requirements outlined in this Handbook 4000.1. I. DOING BUSINESS WITH FHA B. Other Participants 9. Title I Chattel Appraisers Handbook 4000.1 120 Last Revised: 11/26/2025 i. Compliance with Law The Appraiser’s performance must comply with all applicable federal, state, and local laws, including the Fair Housing Act and other federal, state, or local antidiscrimination laws. ii. Appraiser Competency Requirement The Chattel Appraiser assigned to provide the appraisal must be able to complete an assignment for the property type, assignment type, and geographic location of the subject Property. The Chattel Appraiser must comply with USPAP, including the Competency Rule, when conducting appraisals of Properties intended as security for FHA-insured financing. iii. Communications with Appraisers A Chattel Appraiser must avoid conflicts of interest and the appearance of conflicts of interest. To avoid conflicts of interest and the appearance of conflicts of interest, the Chattel Appraiser must not have substantive communications relating to or having an impact on valuation, including ordering or managing an appraisal assignment with any member of a Lender’s loan production staff, any person who is compensated on a commission based on the successful completion of a Loan, or any person who reports to any officer of the Lender who is associated with the loan production staff and process. The Chattel Appraiser is bound by the confidentiality provisions of USPAP and, other than the exceptions to the confidentiality provisions listed in USPAP, may not discuss the value or conclusions of the appraisal with anyone other than the Title I underwriter or FHA staff or their representatives. The Chattel Appraiser may discuss components of the appraisal that influence its quality and value with the Title I underwriter who has responsibility for underwriting the case. The Chattel Appraiser may interact with real estate agents and others during the normal course of business to provide property access, information, and other market data. iv. Appraisal Fees The Chattel Appraiser and the Lender or Lender-designated third party will negotiate the appraisal fees and due date. FHA does not establish appraisal fees or due dates. v. Obligation to Report (A) Professional Appraisal Organizations The Chattel Appraiser may be a member or hold designations in professional appraisal organizations. If the Chattel Appraiser is a member, candidate, or associate of an appraisal organization, the Chattel Appraiser must report to the Lender any I. DOING BUSINESS WITH FHA B. Other Participants 9. Title I Chattel Appraisers Handbook 4000.1 121 Last Revised: 11/26/2025 adjudicated actions resulting in a disciplinary action, or the suspension of the Chattel Appraiser within 14 Days of such action. The Chattel Appraiser must also disclose this information on each appraisal report submitted for FHA chattel loans for the entire period in which the disciplinary action is in place. (B) Safeguards for Appraiser Independence The Chattel Appraiser must report attempts to influence independence to [email protected] or by calling 1-800-CALLFHA (1-800-225-5342). In addition, the Chattel Appraiser must report the attempts to HUD’s Office of Inspector General (OIG). All referrals to the OIG should be made to the OIG Hotline’s call center at 1- 800-347-3735 or via the OIG Hotline’s website at www.hudoig.gov/hotline. Lenders, Appraisal Management Companies (AMC), and third parties are prohibited from influencing the independence of the Chattel Appraiser and the valuation process. Prohibited acts and attempts to influence the results of an appraisal include the following: • withholding or threatening to withhold timely payment or partial payment for an appraisal report; • withholding or threatening to withhold future business from a Chattel Appraiser, or demoting, terminating, or threatening to demote or terminate a Chattel Appraiser; • making expressed or implied promises of future business, promotions, or increased compensation for a Chattel Appraiser; • conditioning the ordering of an appraisal report or the payment of an appraisal fee, salary, or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary value estimate requested from a Chattel Appraiser; • requesting that a Chattel Appraiser provide an estimated, predetermined, or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that a Chattel Appraiser provide estimated values or comparable sales at any time prior to the Chattel Appraiser’s completion of an appraisal report; • providing the Chattel Appraiser with an anticipated, estimated, encouraged, or desired value for a subject Property, or a proposed or target amount to be loaned to the Borrower, except for a copy of the sales contract for purchase and any addendum, which must be provided; • providing the Chattel Appraiser, appraisal company, AMC, or any entity or person related to the Chattel Appraiser, with stock or other financial or nonfinancial benefits; • allowing the removal of a Chattel Appraiser from a list of qualified Chattel Appraisers or the addition of a Chattel Appraiser to an exclusionary list of qualified Chattel Appraisers, used by any entity, without prompt written notice to the Chattel Appraiser that includes written evidence of the Chattel Appraiser’s illegal conduct, violation of USPAP or state licensing standards, improper or unprofessional behavior, or other substantive reason for removal; I. DOING BUSINESS WITH FHA B. Other Participants 9. Title I Chattel Appraisers Handbook 4000.1 122 Last Revised: 11/26/2025 • ordering, obtaining, using, or paying for a second or subsequent appraisal or Automated Valuation Model (AVM) in connection with a mortgage financing transaction, unless: o there is a reasonable basis to believe that the initial appraisal was flawed or tainted, and such appraisal is clearly and appropriately noted in the case binder; or o such appraisal or AVM was completed pursuant to a written, pre- established bona fide pre- or post-funding appraisal review, quality control process, or underwriting guidelines, and the Lender adheres to a policy of selecting the most reliable appraisal, rather than the appraisal that states the highest value; and • any other act or practice that impairs or attempts to impair an Appraiser’s independence, objectivity, or impartiality or violates law or regulation. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages 1. Origination/Processing Handbook 4000.1 123 Last Revised: 11/26/2025 II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. TITLE II INSURED HOUSING PROGRAMS FORWARD MORTGAGES The Title II Insured Housing Programs Forward Mortgages, Origination through Post- closing/Endorsement section in this FHA Single Family Housing Policy Handbook (Handbook 4000.1) provides the origination, underwriting, closing, post-closing, and endorsement standards and procedures applicable to all Single Family (one- to four-units) Mortgages insured under Title II of the National Housing Act, except for Home Equity Conversion Mortgages (HECM). The Mortgagee must fully comply with all of the following standards and procedures in originating, underwriting, and closing for obtaining Federal Housing Administration (FHA) mortgage insurance on a Mortgage. If there are any exceptions or program-specific standards or procedures that differ from those set forth below, the exceptions or alternative program or product specific standards and procedures are explicitly stated. Terms and acronyms used in this Handbook 4000.1 have their meanings defined in the Glossary and Acronyms and in the specific section of Handbook 4000.1 in which the definitions are located. 1. Origination/Processing

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