Valuation Management Group wants you to be up to date on the most recent industry changes. The USDA is revising Handbook HB1-3555. The effective date is March 9th, 2016. The revised handbook can be accessed by clicking HERE.
Additions to the handbook for Residential Appraisal Reports located in Chapter 12 are:
- USDA may be added to the appraisal as an intended user, but it is not required
- Specific Photograph requirements for the appraisal were added
- Guidance is provided for “Property Flipping”
Clarification was also provided on several items, as follows:
- The Cost approach may be completed at the appraiser or lender’s request
- The market or sales comparison is required for all appraisals
- Guidance to upload the appraisal into GUS
- The reference to HUD Handbook is updated to 4000.1. Additional clarification is made that all previous references to “HUD Handbooks 4105.2 and 4905.1” have been replaced with SFH Handbook (HUD Handbook 4000.1) or as superseded by HUD. It also states “This change will always enforce the most current version of HUD’s Minimum property standards”
- Guidance is provided for private roads, streets, and shared driveways
- A road maintenance agreement is not required
Also, some items have been deleted:
- Requirement of the estimated reproduction cost and estimated replacement cost for a dwelling less than one year old have been removed.
- In the Water and Wastewater disposal systems – A. Water 1. Individual privately owned: The “most aggressive” approach language has been deleted. The system must only meet one of the stated distance requirements.
Valuation Management Group manages the appraisal process for numerous USDA appraisals every year, and we look forward to continuing to serve our clients with compliant USDA appraisal reports.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers, and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.