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Appraisal Logging - Processing (UAD 3.6)
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Use Appraisal Logging to add or update appraisal information for a non-endorsed case. For an endorsed or canceled case, appraisal information can only be viewed.

Appraisal Information Submitted through the EAD Portal

When appraisal report information is submitted through the Electronic Appraisal Delivery (EAD) portal, the Appraisal Logging Update page is automatically pre-filled with the information submitted. HOWEVER, THE APPRAISAL LOGGING UPDATE PAGE MUST BE REVIEWED AND PROCESSED (I.E., SEND CLICKED) IN ORDER TO SAVE THE APPRAISAL INFORMATION TO HUD'S COMPUTERIZED HOMES UNDERWRITING MANAGEMENT SYSTEM (CHUMS).

The basic procedure is:

• Get appraisal information
• View the Submitted Appraisal Form(s) and EAD Portal Submission Results (ESR)
• Compare addresses
• Enter Home Equity Conversion Mortgage (HECM) information (if applicable)
• Enter User Certification (if applicable)
• Enter property flipping rule exemption (if applicable)
• Submit for processing

Corrections and additions to information 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, Home Equity Conversion Mortgage (HECM), User Certification, and Property Flipping exemption information can only be added and edited through Appraisal Logging.

See also Extending the Validity Period of the Appraisal, Entering a Second Appraisal, and Exempting a Case from the Property Flipping Rule.

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Getting Appraisal Information

1. On the Appraisal Logging page, enter the case number assigned to the mortgage 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-
   
   The view-only Appraisal Logging Results page appears for an endorsed or canceled case. A message appears above the FHA Case Number stating the case is endorsed or canceled.
   
   -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:
   

   •	When 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.
   	-	Note: Screen loaded from EAD. Confirm the data by pressing “Send” button at bottom of the screen. For a forward case, this message is displayed if the case type in CHUMS matches the electronic appraisal case type.
   	-	Note: Screen loaded from the EAD. Complete fields in HECM Information section and confirm the data by pressing “Send” button at bottom of the screen. For a Home Equity Conversion Mortgage (HECM) case, this message is displayed if the case type in CHUMS matches the electronic appraisal case type.
   	-	Warning: Screen loaded from EAD.  EAD indicates Purchase; CHUMS indicates Refinance; Case is treated as a Refinance. 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 portal 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; CHUMS indicates Purchase; Case is treated as a Purchase. 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 portal 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.

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Viewing the Submitted Appraisal Form(s) and ESR

The View Electronic Appraisal link below the case number allows you to view the submitted appraisal form(s) and the View Last Appraisal ESR link allows you to view the latest EAD Submission Results (ESR).

Getting the Submitted Appraisal Form(s)

1. 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 and appears in a new browser tab.
   
   
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.

Getting the ESR

Click the View Last Appraisal ESR link. The latest EAD Submission Results (ESR) is downloaded as a PDF file and appears in a new browser tab.

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Compare Addresses

The Appraisal Logging Update page may initially display two addresses: CHUMS Address and EAD Address. Compare the two addresses.

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Entering or Editing the Appraisal Report Information

Enter or edit the information in the following sections of the Appraisal Logging Update page: Property Information, Subject Prior Sale Information, Reconciliation Fields, HECM Information, and User Certification.

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

If necessary, do the following:

1. To change the status of the building make another selection from the drop-down list in the Construction Code field. Note: A change to or from Substantial Rehabilitation is not allowed.
   
   
2. To change whether the property is designated as Manufactured Housing, make another selection from the drop-down list in this field.
   
   
3. To change the number of living and accessory dwelling units (ADU) on the property, enter the amounts in the Living Units excluding ADU and ADU Units fields.
   
   
4. To change how the property rights are held, make 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. If Leasehold is selected, add or change the date in the Leasehold Expiration Date field. Use an mm/dd/yyyy format.
   
   
5. To change the date the appraisal was received, enter the date in the Appraisal Received Date field. Use an mm/dd/yy format.
   
   -or-
   
   Click to select a date.
   
   
6. To change the date the property was sold, enter the date in the Sales Contract Date field. Use an mm/dd/yy format. (Not applicable to a refinance case.)
   
   -or-
   
   Click to select a date.
   
   
7. To change the sales price of the property, enter the amount in the Sales Contract Price field (up to 9999999). (Not applicable to a refinance case.)
   
   
8. To change or enter the cost of repairs required by the appraiser to meet HUD’s Minimum Property Requirements (MPR) that are paid for by the borrower, enter the amount in the Borrower Paid Appraiser Required Repairs field (up to 99999). For a 203(k) Rehabilitation Mortgage Insurance case, leave the field blank.
   

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Subject 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.
   
   
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 to select a date.
   
   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.
   
   
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 a result of family gift, inheritance, or a non-monetary transaction? 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 a result of family gift, inheritance, or a non-monetary transaction? field.
   
   -or-
   
   Otherwise, be sure N/A is selected.
   
   
5. If the answer is No to the question Was prior sale/transfer a result of family gift, inheritance, or a non-monetary transaction?, 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

If necessary, do the following:

1. To change the type of appraisal, make a selection from the drop-down list in the Appraisal Type field (As-Is or Subject to).
   
   Note: For a 203(k) case, 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. Then, an As-is appraisal is performed to establish the adjusted as-is value. Please refer to FHA Single Family Housing Policy Handbook 4000.1 for exceptions to 203(k) refinance cases.
   
   
2. Verify the appraiser's estimate of the market value of the property in the Appraised Value field. The amount can only be updated by authorized HUD personnel.
   
   
3. To change the appraiser, 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 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.
   
   
4. For the Effective Date of Appraisal field:
   
   If the Case Number Assignment date is on or after September 6, 2022, this field cannot be changed. To change this date, a new appraisal must be uploaded using the EAD portal, or a request can be made to the HUD Homeownership Center (HOC).
   
   -or-
   
   If the validity period is not extended (Appraisal Update), this date is valid for 180 days. See User Certification below if the date is prior to the Case Number Assignment date.
   
   If a second appraisal is required, the date of the second appraisal must be later than the first appraisal.

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HECM Information

For Home Equity Conversion Mortgage (HECM), 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 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).
   
   
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. 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. 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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Extending the Validity Period of the Appraisal

If the Uniform Residential Appraisal Report will be more than 180 days at the mortgage disbursement date, the Restricted Appraisal Update Report can be submitted to extend the validity period for up to one year from the effective date of the initial appraisal. Note: Refer to FHA Single Family Housing Policy Handbook 4000.1 for guidance on extending the appraisal validity period of a Manufactured Housing case.

The Effective Date of Appraisal (Reconciliation Fields section) cannot have elapsed more than one year. 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.
   
   -or-
   
   Click to use Appraiser Favorites.
   
   
2. Enter the effective date of the Restricted Appraisal Update Report in the Effective Date of Appraisal Update field. Use an mm/dd/yy format.
   
   
3. Click the box in the The Appraiser has certified that the subject property has not declined in value 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.
   •	A pop-up message appears stating: You are logging an Appraisal Update which will extend the appraisal validity period to one year from the original appraisal effective date. Select 'OK' to confirm Appraisal Update. Click OK.

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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.
•	A HECM Automated Valuation Model (AVM) appraisal that significantly differs from the first appraisal.
Note: For the 90-day property flipping rule, a second appraisal is optional. If a second appraisal is performed, the URAR is placed in the case binder and is not recorded via Appraisal Logging on the FHA Connection.

If second appraisal information was submitted electronically, the fields on the Appraisal Logging Update page are automatically populated with the data from the EAD portal. 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, 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/Applicability Reason field.
   
   
2. Click Send. See Submitting for Processing.

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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 REVIEWED AND 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
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 (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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