Appraisal Logging - Business Background


Appraisal information is recorded in HUD's single family mortgage insurance application system, Computerized Homes Underwriting Management System (CHUMS), through Appraisal Logging on the FHA Connection. The form used by the appraiser depends on the property type:

Also, the Appraisal Update and/or Completion Report - Fannie Mae Form 1004D and Freddie Mac Form 442 is used to provide the lender with an accurate update of a prior appraisal and/or certify that the requirements stated in the appraisal report were met.

Appraisal Logging must be processed before submitting the insurance application, if the case requires an appraisal. Appraisal information can be added or updated for a non-endorsed case. After a case is endorsed for insurance, appraisal information can only be viewed. A request can be made to the HUD Homeownership Center (HOC) if appraisal information must be changed after endorsement.

On the date the appraisal is performed, the appraiser must be on the FHA's appraiser roster and meet the Appraiser Qualifications Board (AQB) requirements for the state in which the property is located. On a monthly basis, HUD performs a review of the number and quality of appraisals performed by FHA-approved appraisers.

The purpose of the appraisal is to determine the property's market value and acceptability for FHA mortgage insurance. The maximum FHA insurable mortgage loan is based on this information. The FHA makes no warranties as to the value and/or condition of any FHA-appraised property.

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Appraisal Report Submission

Appraisal reports are submitted electronically through Electronic Appraisal Delivery (EAD) or FHA Catalyst.

Electronic Appraisal Delivery (EAD)

Information on participating in EAD and submitting appraisal reports is available at: https://www.hud.gov/program_offices/housing/sfh/lender/origination/ead. Once the lender's presence is established in the EAD portal, appraisal report information can be loaded through the EAD portal and transmitted to HUD. Appraisal Logging is pre-filled with the appraisal report information received from EAD. The information must be saved to CHUMS by clicking Send on the Appraisal Logging Update page. If corrections or additions need to be made, a revised version of the appraisal report information is submitted through the EAD portal and saved through Appraisal Logging. However, some appraisal information can only be added and edited through Appraisal Logging (e.g., property flipping exemption).

FHA Catalyst

The FHA Catalyst portal with CHUMS receives appraisal reports from lenders in Salesforce®. Appraisal Logging is pre-filled with the appraisal report information received from FHA Catalyst. The information must be saved to CHUMS by clicking Send on the Appraisal Logging Update page. If corrections or additions need to be made, a revised version of the appraisal report information is submitted through the FHA Catalyst portal and saved through Appraisal Logging. However, some appraisal information can only be added and edited through Appraisal Logging (e.g., property flipping exemption).

Note: For cases assigned an FHA case number before June 27, 2016, lenders can use Appraisal Logging or EAD for the entry of appraisal report information.

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Property Flipping

Property that was recently purchased and resold at a substantially greater price is subject to certain restrictions (see Mortgagee Letter 2003-07 and 24 CFR 203.37a). If the resale occurs within 90 days of the date of the execution of the initial sales contract, the mortgage is not eligible for FHA insurance. In addition, a second appraisal by another appraiser may be required if the resale occurs between 91 and 180 days after the initial sale. The property must be purchased from the owner of record and cannot involve any sale or assignment of the sales contract. Property flipping rules apply to cases that were received (Case Number Assignment processed) on or after June 2, 2003. The property flipping rules do not apply to a new construction home that was never occupied.

Notes:

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See Also

Appraisal Logging - Processing

Appraisal Logging Page - Field Description

Appraisal Logging Update Page - Field Descriptions

Appraisal Logging Results Page - Field Descriptions

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Last revised: June 8, 2020