Changes or Corrections to an FHA Appraisal Report

One of the most common questions appraisers have regarding FHA appraisals is "Can I make a client requested change to the appraisal report after it has been delivered?" Unfortunately, the answer is "maybe" although in reality the answer is generally "no." Said another way: Changes or corrections to a delivered apppraisal report are generally not acceptable to HUD.

Q&A
Q: Where does HUD specifically state what can or can't be changed in a delivered appraisal report?


 * A: It appears that there is no printed source for this information.

Q: What CAN the appraiser change in a completed appraisal report?


 * A: Factual errors or omissions made BY the appraiser. FHA does not allow a change in borrower, lender, price, etc. as it it considered a "New Assignment" and FHA does not allow new assignments for an active case number.

'''Q: I have been contacted by a second lender with a copy of the appraisal report I prepared for another lender two months ago. They have requested that I revise the lender name to the new lender. I know I can't change the report but can I do this as a New assignment?'''


 * A: No. HUD does not allow "new assignments."

'''Q: The new lender is saying the report is incomplete and is demanding that I (add additional comps / include a rent schedule / complete the cost approach). Do I have to provide this for the new lender? '''


 * A: No. These items were not included in the original scope of work and the appraiser has no obligation to complete them for the new lender. Per HUD the new lender can use HUD Form 54114 to request any new items needed for the appraisal.

Q: Can the case number be changed on a completed appraisal report?


 * A: No. (Although correction to a typographical error made by the appraiser IS acceptable). A new case number would result in a new assignment. (Although HUD has indicated that it does not allow new assignments for the same case number, it appears that this type of "new assignment" is acceptable to HUD since it is under a new case number).