My New Blog

I received this excellent question from someone viewing my website last night.  Here is the answer: 

The Code states that members of the lender's loan production staff who are compensated on a commission basis or who report to any officer of the lender not independent of the loan production staff and process are not permitted to order appraisals or influence the selection of appraisers. Ideally, a Seller should establish complete separation of appraisal activities from loan production activities. At an absolute minimum, the degree of seperation should be no less than one level up in report structure. To mitigate any potential conflict of interest due to reporting relationships, Sellers should establish, maintain, and enforce written policies and procedures that are designed to reinforce independence.

This is another excellent question asked of a viewer of my website.  Here's what the HUD Handbook says regarding evidence of dampness:

"Mark the box on the form if there is evidence of dampness.  Examine the foundation/basement for dampness or readily observable evidence of water damage.  Signs of past water problems may include efflorescence, mold, mildew or stains on walls or mechanical equipment.  Basement or crawl space area must not have excessive dampness or ponding of water.  If any of these inadequacies exist, condition the appraisal "subject to repairs" to correct the condition or "subject to inspection" to determine the source of the problem and corrective measures necessary by a qualified party."