Valuation Management Group’s Quality Assurance Department wants to share positive changes to USDA guidelines. On May 14, 2015 the USDA has announced three technical clarifications to Chapter 12 of the 3555 Guaranteed Loan Technical Handbook in regards to property and appraisal requirements.
The handbook will be updated and provide clarifications which are noted to be effective immediately.
The Cost approach is not required for the Guaranteed Loan Program, as the regulation (7 CFR 3555) requires a fair market value not a cost approach.
USDA does not need to be listed as an “Intended User” on the appraisal report. The Agency guarantees these loans, however, the loan is the lender’s loan and they should be listed as the only intended user.
HUD will be replacing two of its handbooks for property standards, HUD handbooks 4105.2 and 4905.1. The HUD handbook 4000.1 will replace these 2 handbooks, and it will become effective for purposes of HB-1-3555.
Valuation Management Group considers it part of our appraisal management services to keep our lender partners informed of appraisal changes in the industry.
Valuation Management Group is a national appraisal management company that manages the appraisal process for community 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. VMG welcomes your call to discuss our national appraisal management services.