Appraisal Logging - Processing

Use Appraisal Logging to add or update appraisal information for a non-endorsed case. For an endorsed case, appraisal information can only be viewed. The procedure for Appraisal Logging differs depending on whether the appraisal report information is submitted through the Electronic Appraisal Delivery (EAD) portal or entered directly through Appraisal Logging.

Appraisal Information Submitted via EAD Portal

For appraisal report information submitted via the Electronic Appraisal Delivery (EAD) portal, the Appraisal Logging Update page is automatically pre-filled with the information submitted (effective after April 11, 2015). However, the information should be reviewed. PLEASE NOTE THAT THE APPRAISAL LOGGING UPDATE PAGE MUST BE PROCESSED (I.E., SEND IS CLICKED) IN ORDER TO SAVE THE ELECTRONIC APPRAISAL INFORMATION FROM THE EAD PORTAL TO HUD'S COMPUTERIZED HOMES UNDERWRITING MANAGEMENT SYSTEM (CHUMS).

The basic procedure is:

Corrections and additions to information submitted via the EAD portal are made by submitting the appraisal report information again through the EAD portal with the revisions. The revised information from the EAD portal must be reviewed and saved again to CHUMS through Appraisal Logging. However, HECM, User Certification, Presidentially Declared Major Disaster Area, and Property Flipping exemption information can only be added and edited through Appraisal Logging.

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Appraisal Information Entered Directly via Appraisal Logging

Obtain information for processing Appraisal Logging from the Appraisal Report. The basic procedure is:

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Getting Case Information

  1. On the Appraisal Logging page, enter the case number assigned to the mortgage loan in the FHA Case Number field.

  2. Click Send. The Appraisal Logging Update page appears for a non-endorsed case if processing is successful. Verify that you are working with the appropriate case by reviewing the information. Then, see Entering or Editing the Appraisal Report Information or Entering a Second Appraisal Information.

    -or-

    If there is an error, the Appraisal Logging page appears with an error message above the FHA Case Number and an Error(s) Detected field appears below it in the Details section. Review the information in these fields. Make the required correction and process again.

    Notes:
    If the Appraisal Logging Update page is populated with electronic appraisal information from the EAD portal, one of the following messages may appear at the top of the page with respect to the case type.
      - Screen loaded from EAD/Electronic Appraisal Data. This message is displayed if the case type in CHUMS matches the electronic appraisal case type.
      - Warning: Screen loaded from EAD.  EAD indicates Purchase – Ignored. This message is displayed if CHUMS indicates the case is a refinance but the electronic appraisal indicates the case is a purchase. The CHUMS case type information is retained and the EAD case type information is ignored. The case type in the appraisal must be corrected and the appraisal resubmitted or the case type must be corrected in CHUMS, using Case Number Assignment Update on the FHA Connection.
      - Warning: Screen loaded from EAD.  EAD indicates Refinance – Ignored. This message is displayed if CHUMS indicates the case is a purchase but the electronic appraisal indicates the case is a refinance. The CHUMS case type information is retained and the EAD case type information is ignored. The case type in the appraisal must be corrected and the appraisal resubmitted or the case type must be corrected in CHUMS, using Case Number Assignment Update on the FHA Connection.
      See Entering or Editing the Appraisal Report Information.
    If a second appraisal was performed but not recorded yet, see Entering a Second Appraisal Information.
    If two appraisals were recorded, the appraisal selected by the system for case processing is displayed (even if it was the second appraisal). The system examines each appraisal and determines which one is to be used. The statements below the FHA Case Number identify the appraisal (First Appraisal or Second Appraisal) and specify that this appraisal is being used for case processing (First Appraisal Data Used for Case Processing or Second Appraisal Data Used for Case Processing). On the Appraisal Logging Update page, scroll to the bottom of the page and click Second Appraisal or First Appraisal to get the other appraisal information.
    A view-only Appraisal Logging Results page appears for an endorsed case. Changes cannot be made. A message appears above the FHA Case Number stating that the case is endorsed.

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Viewing the Electronic Appraisal Document (EAD Portal Only)

If the case has an electronic appraisal document, the View Electronic Appraisal link is displayed on the upper part of the Appraisal Logging Update and Appraisal Logging Results pages.

  1. To view the contents of the appraisal document, click the View Electronic Appraisal link. The Electronic Appraisal Documents pop-up page appears with a list of document types (e.g., Appraisal1, Appraisal2), the date and time the document was posted, and the version number.

  2. Click the version number to download the appraisal document as a Portable Document Format (PDF) file. Depending on your browser, you may be prompted to Open or Save the file.  Follow your browser’s procedures for downloading files.

  3. To print the Electronic Appraisal Documents pop-up page, click Print.

    -and/or-

    To close the Electronic Appraisal Documents pop-up page, click Close.

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Compare Addresses (EAD Portal Only)

If the Appraisal Logging Update page is populated with appraisal information from the EAD portal, the Appraisal Logging Update page initially displays two addresses: existing Address in CHUMS and the EAD Address in the electronic appraisal report submitted via the EAD portal. Compare the two addresses.

Addresses Match: After Send is clicked on the Appraisal Logging Update page, the information on the page is saved to CHUMS. The next time the Appraisal Logging Update page is accessed, the EAD Address field is no longer displayed.
Addresses Do Not Match: If the addresses do not match, a message is displayed below the EAD Address field indicating there is a discrepancy. There are three ways to resolve an address discrepancy. They are:
  - If there is a close match between the two addresses, click the check box next to I certify that property addresses match so that a check mark appears. The CHUMS Address is retained and not overwritten when the Appraisal Logging Update page is processed.
  - If the address in the Address field on the Appraisal Logging Update page (i.e., property address in CHUMS) displays an inaccurate address and must conform to the EAD Address, use Borrower/Address Change to change the address in CHUMS. When you return to the Appraisal Logging Update page, there should no longer be a discrepancy.
  - If the address in the EAD Address field on the Appraisal Logging Update page (i.e., property address via EAD portal) displays an inaccurate address and must conform to the Address in CHUMS, correct the address on the Appraisal Report and resubmit it via the EAD portal. When you return to the Appraisal Logging Update page, there should no longer be a discrepancy.

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Entering or Editing the Appraisal Report Information

Enter or edit the Appraisal Report information in the following sections of the Appraisal Logging Update page: Property Information, Neighborhood Fields, Site Fields, Physical Characteristic Fields, Property Title/Rights Fields, Prior Sale Information, Reconciliation Fields, HECM Information, User Certification, and Presidentially Declared Major Disaster Area.

Do not enter dollar signs, commas, or cents in fields requiring monetary amounts, unless otherwise instructed. Enter whole percentages without percent signs (%) in fields requiring percentages.

Property Information

Note: If the Appraisal Logging Update page is populated with appraisal information from the EAD portal, see also Comparing Addresses.

  1. If the property is in a Planned Unit Development (PUD), select Yes in the PUD field. Otherwise, select No. Get the information from the Appraisal Report, Subject section, PUD.

  2. If necessary, change the status of the building using the drop-down list in the Construction Code field. Note: A change to or from Substantial Rehabilitation is not allowed.

  3. If necessary, enter or change the date construction of the building was completed by typing the month and year in the Year Built field.
    For cases assigned a case number before April 11, 2015, only the year is required if the building is two years or older.
    For cases assigned a case number after April 11, 2015:
      - The year (yyyy) must be entered and the month (mm) is optional.
      - For cases with a Construction Code of Proposed or Under Construction, enter the year of the Effective Date of the Appraisal or the year after the Effective Date of the Appraisal.
    Note: If the Year Built date is changed, the date in the Month/Year Completed field for Case Number Assignment is also changed, and vice versa.

    Get the information from the Appraisal Report, Sales Comparison Approach section, Actual Age.

  4. Enter the effective age of the building (in years) in the Effective Age field (up to 150 years). If the Construction Code is Proposed Construction or Under Construction, the age of the building cannot be greater than one year and zero (0) may be entered. If a date range was entered on an appraisal submitted via EAD, the Effective Age field is pre-filled with the higher value. For example, if the date range is 12-15 years, the Effective Age field is pre-filled with the value 15. Get the information from the Appraisal Report, Improvements section, Effective Age (Yrs). Note: This information is not required for cases with an Appraisal Logged Date earlier than July 16, 2005.

  5. Enter the date the Appraisal Report was received in the Appraisal Received Date field. Use an mm/dd/yy format.

    -or-

    Click Calendar to select a date.

  6. For a purchase case (including a HECM purchase), enter the date the property was sold in the Date of Contract field. Otherwise, skip this step. Use an mm/dd/yy format.

    -or-

    Click Calendar to select a date.

    Get the information from the Appraisal Report, Contract section, Date of Contract. This information is not required for HECM and refinance cases.

  7. For a purchase case (including a HECM purchase), enter the contract sales price in the Contract Price field (up to 9999999). Otherwise, skip this step. Get the information from the Appraisal Report, Contract section, Contract Price. This information is not required for HECM traditional and refinance cases.

  8. For a purchase case, enter the cost of repairs required by the appraiser to meet HUD’s Minimum Property Requirements (MPR) that are paid for by the borrower in the Borrower Paid Appraiser Required Repairs field (up to 99999). For a 203(k) Rehabilitation Mortgage Insurance case, leave the field blank. Get the information from the Appraisal Report and sales contract or addendum.

Note: Use Borrower/Address Change if the address needs to be updated.

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Neighborhood Fields

  1. Select the type of area surrounding the property from the Location drop-down list. Get the information from the Appraisal Report, Neighborhood section, Neighborhood Characteristics, Location.

  2. Enter the average price for a dwelling within the neighborhood in the Predominant Neighborhood Price field (15000 to 9999999). Get the information from the Appraisal Report, Neighborhood section, Pred.

  3. Enter the land use percentages in the One-Unit, 2-4 Unit, Multi-Family, and/or Commercial fields. The combined total of these fields must be 100 or less. Get the information from the Appraisal Report, Neighborhood section, Present Land Use %.

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Site Fields

  1. Enter the size of the site area in the Sq Ft field or Acres field. If the property is less than one acre, enter the square footage in the Sq Ft field (340 to 43559). Otherwise, enter the acreage in the Acres field (1 to 999.99). Any amount greater than 43559 entered in the Sq Ft field is automatically converted to acres during processing. This information is not required for a condominium. Get the information from the Appraisal Report, Site section, Area.

    Note: Here are examples of fractions of an acre converted to square feet: .25 acre = 10890 sq ft, .50 acre = 21780 sq ft, and .75 acre = 32670 sq ft.

  2. Select the type of dwelling structure from the drop-down list in the Type field. If the property is not a condominium, only one of these types can be selected: Detached, Attached, Semi-Detached/End Unit, or Row/Townhouse. If the property is a condominium, only one of these types can be selected: Detached, Row/Townhouse, Garden, Mid-Rise, High-Rise, or Other. Get the information from the Appraisal Report, Improvements section, General Description, Type (condominium: Project Information section, Project Description).

  3. Select Yes in the Manufactured Housing field if the dwelling is a manufactured (mobile) home. Otherwise, select No. Get the information from the Appraisal Report.

    Note: You can click Question Mark to get details on Manufactured Housing.

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Physical Characteristic Fields

  1. Select the property's primary type of foundation from the drop-down list in the Foundation field. This information is not required for a condominium. Get the information from the Appraisal Report, Improvements section, Foundation.

  2. Enter the total number of rooms above grade in the Rooms field. Get the information from the Appraisal Report as follows:
    One Unit and Manufactured: Improvements section, Finished area above grade contains, Rooms
    Condominium : Unit Description section, Finished area above grade contains, Rooms
    Two to Four Units: Improvements section, Unit # contains, Rooms (total for all units)

  3. Enter the total number of bedrooms above grade in the Bedrooms field (0 to 99). Zero may be entered for an efficiency unit or studio apartment. The amount in this field must be less than the amount in the Rooms field. Get the information from the Appraisal Report as follows:
    One Unit and Manufactured: Improvements section, Finished area above grade contains, Bedrooms
    Condominium : Unit Description section, Finished area above grade contains, Bedrooms
    Two to Four Units: Improvements section, Unit # contains, Bedroom(s) (total for all units)

  4. Enter the total number of bathrooms above grade in the Baths field. For cases assigned a case number before April 11, 2015, enter .5 for a half bath. For cases assigned a case number after April 11, 2015, enter the total number of half baths after a decimal. For example, if the property has three full baths and two half baths, enter 3.2. The number before a decimal is the number of full baths and the number after a decimal is the number of half baths. The amount in this field must be less than the amount in the Rooms field. Get the information from the Appraisal Report as follows:
    One Unit and Manufactured: Improvements section, Finished area above grade contains, Bath(s)
    Condominium : Unit Description section, Finished area above grade contains, Bath(s)
    Two to Four Units: Improvements section, Unit # contains, Bath(s) (total for all units)
    Note: If the property has only a full bathroom below grade, zero (0) may be entered in this field.

  5. Enter the total square footage of living area above grade in the Living Area field. Get the information from the Appraisal Report as follows:
    One Unit and Manufactured: Improvements section, Finished area above grade contains, Square Feet of Gross Living Area Above Grade
    Condominium: Unit Description section, Finished area above grade contains, Square Feet of Gross Living Area Above Grade
    Two to Four Units: Improvements section, Unit # contains, Square Feet of Gross Living Area Above Grade (total for all units)

  6. Select Yes in the Central Air field if the dwelling has central air conditioning. Otherwise, select No. Get the information from the Appraisal Report, Improvements section, Cooling, Central Air Conditioning (condominium : Unit Description section, Central AC).

  7. Select the type of parking facility from the drop-down list in the Car Storage field. Get the information from the Appraisal Report, Improvements section, Car Storage (condominium : Unit Description section, Car Storage).
  1. Enter the cooperative housing project's total number of cooperative units in the Total Cooperative Units in Project field. Get the information from the Appraisal Report, Project Description section.

  2. Enter the dollar amount of the cooperative unit's share of the housing project's blanket mortgage in the Pro Rata Amount of Blanket Mortgage field. Get the information from the Appraisal Report, Cooperative Project Information section.

    Note: The Unencumbered Value of the cooperative unit is automatically calculated by the system (i.e., Appraised Value minus Pro-rata Amount of Blanket Mortgage).

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Property Title Information

  1. Optionally, specify how the property rights are held by making a selection from the drop-down list in the Estate Will be Held in field or Property Title Held as field for a HECM case. Get the information from the Appraisal Report, Subject section, Property Rights Appraised, URLA, section II. Property Information and Purpose of Loan, Fannie Mae form 1009, section II. Primary Residence Property Information, or form HUD-92900-LT, Property Rights.

  2. For a Leasehold, enter the date of the expiration of the lease in the Leasehold Expiration Date field. Otherwise, leave this field blank. Use an mm/dd/yy format. Get the information from the URLA, section II. Property Information and Purpose of Loan, or Fannie Mae form 1009, section II. Primary Residence Property Information.

    -or-

    Click Calendar to select a date.

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Prior Sale Information

The following information is required for all cases.

  1. To answer the question Was prior sale of this property within the past 3 years?, make a selection from the drop-down list box in this field. Get the information from the Appraisal Report, Sales Comparison Approach section, My research did/did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal.

  2. If the answer to the above question is No Sale/Transfer within 3 yrs, leave the Date of Prior Sale/Transfer and Price of Prior Sale/Transfer fields blank and skip to step 4.

    -or-

    If the answer is Prior Sale/Transfer within 3 yrs or Foreclosure within 3 yrs, enter the date the property was previously sold in the Date of Prior Sale/Transfer. If the property was sold more than once within the three-year period, enter the date of the last sale. Use an mm/dd/yy format or click Calendar to select a date.

    Get the information from the Appraisal Report, Sales Comparison Approach section, Date of Prior Sale/Transfer Date, Subject.

    Note: If Foreclosure within 3 yrs is selected, the case is not flagged for property flipping if the Date of Prior Sale/Transfer is within 90 days. However, documentation proving exemption from the 90-day property flipping rule must be included in the case binder.

  3. For a prior sale/transfer or foreclosure within the last three years, enter the price at which the property was previously sold in the Price of Prior Sale/Transfer field (0 to 9999999). If the property was acquired through a non-monetary transaction or a family gift or inheritance, zero (0) can be entered. Get the information from the Appraisal Report, Sales Comparison Approach section, Price of Prior Sale/Transfer, Subject.

  4. If the property was acquired through a family gift or inheritance within 12 months of the Date of Prior Sale/Transfer, select Yes in the Was prior sale/transfer result of family gift or inheritance? field.

    -or-

    If the property was acquired within 12 months of the Date of Prior Sale/Transfer, but not through a family gift or inheritance, select No in the Was prior sale/transfer result of family gift or inheritance? field.

    -or-

    Otherwise, be sure N/A is selected.

  5. If the answer is No to the question Was prior sale/transfer result of family gift or inheritance?, enter the documented cost of improvements made subsequent to the last transaction for the subject property in the Cost of Improvements made subsequent to Prior Sale field (0 to 999999).

    -or-

    Otherwise, enter zero (0).

    Note: This amount is used in calculating the Adjusted Value for a refinance case within the last 12 months, but is not used for a 203(k) refinance case.

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Reconciliation Fields

  1. Select the type of appraisal from the drop-down list in the Appraisal Type field (As-Is or Subject to).

    Notes:
    Non-203(k) Cases: Selection of an Appraisal Type is required for non-203(k) cases with a Case Number Assignment date of October 31, 2016 or later.  It is optional for non-203(k) cases with a Case Number Assignment date prior to October 31, 2016.
    203(k) Cases: Selection of an Appraisal Type is required for all 203(k) cases. For 203(k) cases with a Case Number Assignment date of March 14, 2016 or later, a Subject to appraisal must be performed (i.e., subject to completion, repairs, and/or plans and specifications) as part of establishing the after-improved value. An As-Is appraisal is required as a second appraisal for (a) property acquired less than 12 months prior to the Case Number Assignment date or (b) for a refinance case when the property was acquired 12 months or more prior to the Case Number Assignment date and the sum of the existing debt on the property plus the following items exceeds the after-improved value: Financeable Repairs and Improvement Costs, Financeable Mortgage Fees, Financeable Contingency Reserves, and Financeable Mortgage Payment Reserves (Standard 203(k) only). For the first appraisal, the Subject to Appraisal Type must be selected and for the second appraisal, the As-Is Appraisal Type must be selected.

  2. Verify the appraiser's estimate of the market value of the property in the Appraised Value field. Get the information from the Appraisal Report, Reconciliation section.

  3. Enter the license number of the appraiser who performed the appraisal in the Actual Appraiser (State Certification or License No.) ID field. Note: The appraiser must be on the FHA's appraiser roster and meet Appraiser Qualifications Board (AQB) requirements for licensing/certification on the date the appraisal is performed.

    -or-

    Click Appraiser Favorites to use Appraiser Favorites.

    If a second appraisal is required, the Actual Appraiser for the second appraisal must not be the same as the first appraisal. Get the information from the Appraisal Report, Appraiser's Certification, Appraiser, State Certification #, State License #, or Other.

  4. Enter the date the property was appraised in the Effective Date of Appraisal field. Use an mm/dd/yy format. This date is valid for 120 days if the validity period is not extended (Appraisal Update). See User Certification below if the date is prior to the Case Number Assignment date.

    -or-

    Click Calendar to select a date.

    If a second appraisal is required, the date of the second appraisal must be later than the first appraisal. Get the information from the Appraisal Report, Reconciliation section, Based on a complete visual inspection ... as of ..., which is the date of inspection and the effective date of this appraisal.

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HECM Information

For Home Equity Conversion Mortgage (HECM) cases assigned a case number on or after September 30, 2013, do the following:

  1. Enter the value of the loan proceeds available to the borrower at loan closing in the Initial Principal Limit (IPL) field. Do not include a dollar sign, comma, or cents. The value in this field must be between 9% and 78% of the Maximum Claim Amount.

  2. For mortgages assigned a case number before October 2, 2017, select the percentage to be used for calculating the initial (upfront) mortgage insurance premium (MIP) from the drop-down list in the Initial MIP Factor field.
    Notes:
    The Initial MIP Factor selected must agree with the sum of the Mandatory Obligations (Does not include cash), Taxes/Insurance 1st Yr Payments, Additional 10% of IPL Usage Amount, and Repair Set Aside Amount.
      - 0.5%; <= 60% IPL is selected if the sum of Mandatory Obligations (Does not include cash), Taxes/Insurance 1st Yr Payments, Additional 10% of IPL Usage Amount, and Repair Set Aside Amount is less than or equal to 60% of the Initial Principal Limit (IPL).
      - 2.5%; > 60% IPL is selected if the sum of Mandatory Obligations (Does not include cash), Taxes/Insurance 1st Yr Payments, Additional 10% of IPL Usage Amount, and Repair Set Aside Amount is greater than 60% of the Initial Principal Limit (IPL).
    For a HECM refinance case, only the MIP paid on the prior mortgage is considered when computing the initial MIP.

  3. Enter the amount of financed fees and charges incurred in connection with the origination of the mortgage that are paid at loan closing in the Mandatory Obligations (Does not include cash) field. The sum of financed mandatory obligations cannot exceed the available principal limit. Do not include a dollar sign, comma, or cents. This field cannot be left blank and a zero (0) amount can be entered. However, a warning message is returned when the page is processed and you are asked to confirm the zero amount. Note: You can click Question Mark to get details on Mandatory Obligations. Sources:  Home Equity Conversion Loan Agreement, Exhibit 1 - Payment Plan, Exhibit 2 - Schedule Closing of Costs/Schedule of Liens, and Exhibit 3 - Repair Rider, Settlement Statement/Closing Disclosure, and Credit Report.

  4. Enter the amount of "cash" the borrower is required to bring to loan closing to satisfy the difference between the Initial Principal Limit amount and the amount of mandatory obligations in the Mandatory Obligations Cash from Borrower field. Do not include a dollar sign, comma, or cents. This field cannot be left blank and a zero (0) amount can be entered. Sources:  Home Equity Conversion Loan Agreement, Exhibit 1 - Payment Plan and Exhibit 2 - Schedule Closing of Costs/Schedule of Liens, and form HUD -1.

  5. For a traditional or refinance HECM, enter the amount of "cash" the lender will contribute towards the borrower’s mandatory obligations in the Mandatory Obligations Cash from Lender field, as documented in the Good Faith Estimate and Settlement Statement/Closing Disclosure. Do not include a dollar sign, comma, or cents. This field cannot be left blank and a zero (0) amount can be entered. Sources: Home Equity Conversion Loan Agreement, Exhibit 1 - Payment Plan and Exhibit 2 - Schedule Closing of Costs/Schedule of Liens, and Settlement Statement/Closing Disclosure.

  6. If HECM proceeds, or funds from a property charge set aside, are used to pay property taxes and hazard and flood insurance bills within the first 12-month disbursement period, enter the amount in the Taxes/Insurance 1st Yr Payments field. The sum of the actual insurance premium and tax amounts must be used. If a new tax bill has not been issued, the prior year’s amount multiplied by 1.2 is used. Do not include a dollar sign, comma, or cents.

    -or-

    Otherwise, enter zero (0).

    Note: This information is not collected for cases assigned a case number before April 27, 2015 and for those cases, zero (0) is entered in this field.

  7. If repairs are required to be completed after loan closing and during the first 12-month disbursement period, select Yes from the drop-down list in the Repair Set Aside field. Then, enter the amount in the Repair Set Aside Amount field. Do not include a dollar sign, comma, or cents.

    -or-

    Otherwise, select No from the drop-down list in the Repair Set Aside field and leave the Repair Set Aside Amount field blank.

  8. For mortgages assigned an FHA case number on or after September 19, 2017, enter the sum of the fully or partially funded Life Expectancy Set Aside (LESA) minus Taxes/Insurance 1st Yr Payments in the Net LESA field. Enter the amount in dollars and cents using this format: nnnnnn.nn. This amount must be the same as that entered for HECM Financial Assessment.

    -or-

    Otherwise, enter zero (0). Note: The Taxes/Insurance 1st Yr Payments amount must also be zero (0).

  9. For mortgages assigned an FHA case number on or after September 19, 2017, enter the amount funded for the payment of the monthly servicing fee in the Servicing Fee Set Aside field, using this format: nnnnn.nn.

    -or-

    Otherwise, enter zero (0).

  10. If the borrower (a) intends to take an additional amount of up to 10% of the Initial Principal Limit (IPL) and (b) the sum of the Mandatory Obligations (Does not include cash), Taxes/Insurance 1st Yr Payments, and Repair Set Aside Amount is greater than or equal to 50% of the Initial Principal Limit (IPL), select Yes from the drop-down list in the Additional 10% of IPL Usage field. Then, enter the amount in the Additional 10% of IPL Usage Amount field. Do not include a dollar sign, comma, or cents. Note: This amount must be less than or equal to 10% of the Initial Principal Limit.

    -or-

    If the borrower (a) does not intend to take additional amount of up to 10% of the Initial Principal Limit (IPL) and (b) the sum of the Mandatory Obligations (Does not include Cash), Taxes/Insurance 1st Yr Payments, and Repair Set Aside Amount is greater than or equal to 50% of the Initial Principal Limit (IPL), select No from the drop-down list in the Additional 10% of IPL Usage field and leave the Additional 10% of IPL Usage Amount field blank.

    -or-

    If the sum of the Mandatory Obligations (Does not include cash), Taxes/Insurance 1st Yr Payments, and Repair Set Aside Amount fields is less than 50% of the Initial Principal Limit (IPL), select N/A from the drop-down list in the Additional 10% of IPL Usage field and leave the Additional 10% of IPL Usage Amount field blank.

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User Certification

Click the check box in the Certify Effective Date field if the Effective Date of Appraisal precedes the date the FHA case number was assigned to the mortgage and the reason is due to a change in the mortgage from conventional financing, HUD Real Estate Owned (REO), or government guaranteed to FHA insured, or the previous FHA case number was canceled. The case binder must include documentation substantiating the conversion of the mortgage.

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Presidentially Declared Major Disaster Area

  1. Select Yes or No in the Does this property fall in a presidentially declared major disaster area? field. You can click Question Mark to display a pop-up page with a list of the states and counties to which it applies.

  2. If the property is in a presidentially declared major disaster area, specify whether damages were incurred by selecting Yes or No in the Did this property sustain damage? field. If the property is not in a presidentially declared major disaster area, do not make a selection.

  3. If the property is in a presidentially declared major disaster area and sustained damages, select the amount of damages from the drop-down list in the Amount of Damage field. Otherwise, do not make a selection.

Note: If the state license or certification number you entered was issued to more than one appraiser, an error message is displayed when the page is processed. Select the name of the appraiser from the drop-down list in the Actual Appraiser (State Certification or License No.) Name field. Get the information from the Appraisal Report, Appraiser's Certification, Appraiser, Name.

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Extending the Validity Period of the Appraisal

An appraisal update can be performed if the initial appraisal has not expired. The updated appraisal is valid for a period of 240 days from the effective date of the initial appraisal being updated. The Appraisal Update and/or Completion Report, Fannie Mae Form 1004D, Freddie Mac Form 422 is completed by the appraiser.

The Effective Date of Appraisal (Reconciliation Fields section) cannot have elapsed more than 120 days. In the Appraisal Update section of the Appraisal Logging Update page, do the following:

  1. Enter the license number of the appraiser who performed the evaluation of the property in the Appraiser (State Certification or License No.) ID field. Get the information from the Appraisal Update and/or Completion Report, Fannie Mae Form 1004D, Freddie Mac Form 422, Signatures, State Certification #.

    -or-

    Click Appraiser Favorites to use Appraiser Favorites.

  2. Enter the effective date of the Appraisal Update and/or Completion Report in the Effective Date of Appraisal Update field. Use an mm/dd/yy format. Get the information from the Appraisal Update and/or Completion Report, Fannie Mae Form 1004D, Freddie Mac Form 422, Signatures, Effective Date of Appraisal Update.

  3. Click the box in the Certify subject property did not decline in value field if the property's value did not decrease since the original Effective Date of Appraisal (Reconciliation Fields section). A check mark appears when the box is selected. Get the information from the Appraisal Update and/or Completion Report, Fannie Mae Form 1004D, Freddie Mac Form 422, Summary Appraisal Report Update, Has the Market Value of the Subject Property Declined ...

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Entering Second Appraisal Information

A second appraisal is recorded via Appraisal Logging on the FHA Connection under the following circumstances:
91-180 day property flipping rule applies to case. (However, if the current sales price for the property is less than double the prior sales price, the second appraisal information is not required for Appraisal Logging. Instead, the Appraisal Report is placed in the case binder.)
Case was transferred to another lender and due to a portability issue, the new lender ordered a second appraisal.
Expiration of the appraisal validity period.
An as-is appraisal is required for a 203(k) case, in addition to the subject to appraisal.
Note: For the 90-day property flipping rule, a second appraisal is optional. If a second appraisal is performed, the Appraisal Report is placed in the case binder and is not recorded via Appraisal Logging on the FHA Connection.

If second appraisal information was submitted electronically via the EAD portal, the fields on the Appraisal Logging Update page are automatically populated with the data from the EAD portal (effective after April 11, 2015). However, the information must be reviewed and edited, if necessary. See also Entering or Editing the Appraisal Report Information.

To enter information on a second appraisal, do the following:

  1. On the Appraisal Logging Update page, click Second Appraisal, located near the bottom of the page. A pop-up message appears with guidance on when to log a second appraisal via the FHA Connection.

  2. Click OK to log a second appraisal via the FHA Connection. Continue to step 3.

    -or-

    Click Cancel to cancel logging a second appraisal via the FHA Connection.

  3. Another pop-up message appears stating: You have confirmed that you wish to enter a second appraisal. Click OK. The Appraisal Logging Update page appears with blank fields for entry of the Appraisal Report information for the second appraisal.

  4. Follow the instructions for Entering the Appraisal Report Information.

  5. At the bottom of the Appraisal Logging Update page for the second appraisal, make a selection from the drop-down list in the Second Appraisal Reason field.

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Exempting a Case from the Property Flipping Rule

If the property is sold 90 days or less following the date of acquisition by the seller, the mortgage is not eligible for FHA insurance. If the property is sold between 91 days and 180 days following the date of acquisition by the seller and the resale price is 100 percent over the purchase price, a second appraisal is required by another appraiser. The property flipping rules do not apply to a new construction home that was never occupied.

For purchase cases assigned a case number on or after September 14, 2015, lenders (and authorized HUD personnel) can exempt a case from the 90-day or 91-180 day property flipping rule if it qualifies under 24 CFR 203.37a, (c) Exceptions to the time restrictions on sales.

  1. On the Appraisal Logging Update page, Property Flipping section, make a selection from the drop-down list in the Flipping Exemption Reason field.

  2. Click Send. See Submitting for Processing.

Submitting for Processing

When all the changes are made in the Appraisal Logging Update page, click Send. The Appraisal Logging Results page appears if processing was successful. If there are errors that prevent processing, the Appraisal Logging Update page appears again for making corrections. See Reviewing Appraisal Logging Results.


PLEASE NOTE THAT THE APPRAISAL LOGGING UPDATE PAGE MUST BE PROCESSED (I.E., SEND CLICKED) IN ORDER TO SAVE TO CHUMS THE ELECTRONIC APPRAISAL INFORMATION DOWNLOADED FROM THE EAD PORTAL.

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Reviewing Appraisal Logging Results

If processing was successful, the Appraisal Logging Results page appears with a message stating Success at the top of the page. If processing was successful but there is an issue the user should be aware of, a message stating Warning is displayed at the top of the page and an explanation is provided.

Note: If the Effective Date of Appraisal precedes the date an FHA case number was assigned to the mortgage, an error message is returned. If the reason is due to a change in the mortgage from conventional financing, HUD Real Estate Owned (REO), or government guaranteed to FHA insured, or the previous FHA case number was canceled, click the box in the Certify Effective Date field. Then, click Send to process again. Documentation substantiating the conversion of the mortgage to FHA insured must be retained in the case binder.

See the list below for some of the common messages and warnings that may appear on the Appraisal Logging Results or Appraisal Logging Update pages.

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Error: Appraisal Logging Not Processed Due to Error(s)

Success: Appraisal Logging Successfully Completed

Warning: Appraisal Logging Successfully Completed
Case Endorsed; Query Only

Warning: Appraisal Logging Successfully Completed
Check Acres Entered

Warning: Appraisal Logging Successfully Completed
Check Number of Bedrooms Entered

Warning: Appraisal Logging Successfully Completed
Check Square Feet Entered

Warning: Appraisal Logging Successfully Completed
Check Total Rooms Entered

Warning: Appraisal Logging Successfully Completed
Full/Market Assessed Value Not within 50% of Appraised Value

Warning: Appraisal Logging Successfully Completed
Property Subject to 90 Day Flipping Rule

Warning: Appraisal Logging Successfully Completed
Property Subject to > 90 Flipping Rule
Second Appraisal Required

Warning: Appraisal Logging Successfully Completed
Property Subject to Loc Flipping Rule
Second Appraisal Required

Warning: Appraisal Logging Successfully Completed
Appraisal Data Accepted as Primary Appraisal
Property Subject to [> 90 Flipping Rule or Loc Flipping Rule]

Warning: Appraisal Logging Successfully Completed
Appraisal Data Accepted as Alternate Appraisal
Property Subject to [> 90 Flipping Rule or Loc Flipping Rule]

See Also

Appraisal Logging - Business Background

Appraisal Logging Page - Field Descriptions

Appraisal Logging Update Page - Field Descriptions

Appraisal Logging Results Page - Field Descriptions

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Last revised: January 2, 2019