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Appraisal Logging - Business Background (UAD 3.6)
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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 following forms are used for Uniform Appraisal Dataset (UAD) 3.6 and are submitted through the Electronic Appraisal Delivery (EAD) portal:

• Uniform Residential Appraisal Report (URAR) is used for all single family property types.
  
  
• Restricted Appraisal Update Report is used to update the original appraisal.
  
  
• Completion Report is used to verify completion of any improvements required by the original appraisal.

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 the EAD portal. Appraisal Logging is pre-filled with the appraisal report information received from the EAD portal. The information must be reviewed and saved to HUD's Computerized Homes Underwriting Management System (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 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 and Home Equity Conversion Mortgage (HECM) information).

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Property Flipping

Property that was recently purchased and resold at a substantially greater price is subject to certain restrictions. 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:

• The 90-day property flipping rule is not applicable to a forward mortgage with a Date of Contract between February 1, 2010 and December 31, 2014 and a Date of Prior Sale/Transfer within 90 days.
  
  
• Currently, foreclosed property resold within 90 days is exempt from the 90-day property flipping rule. Also, an automatic exemption of the 90-day flipping rule is in effect for cases with the following characteristics:
  
  

  -	Program Type is REO (HUD Real Estate Owned).
  -	Program ID is 36 - Construction/Permanent.
  -	Construction Type is Proposed or Under Construction.

  
  
• Exceptions to the property flipping rules are listed in 24 CFR 203.37a, (c) Exceptions to the time restrictions on sales. Cases that qualify can be exempt from the property flipping rule.

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See Also

Appraisal Logging - Processing (UAD 3.6)

Appraisal Logging Page - Field Description

Appraisal Logging Update Page - Field Descriptions (UAD 3.6)

Appraisal Logging Results Page - Field Descriptions (UAD 3.6)

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