FHA Single Family Housing Policy Handbook 4000.1, I. > DOING BUSINESS WITH FHA > B. Other Participants > 9. Title I Chattel Appraisers — c. Post-appraisal Requirements

v. Obligation to Report

(A) Professional Appraisal Organizations The Chattel Appraiser may be a member or hold designations in professional appraisal organizations. If the Chattel Appraiser is a member, candidate, or associate of an appraisal organization, the Chattel Appraiser must report to the Lender any adjudicated actions resulting in a disciplinary action, or the suspension of the Chattel Appraiser within 14 Days of such action. The Chattel Appraiser must also disclose this information on each appraisal report submitted for FHA chattel loans for the entire period in which the disciplinary action is in place.

(B) Safeguards for Appraiser Independence The Chattel Appraiser must report attempts to influence independence to [email protected] or by calling 1-800-CALLFHA (1-800-225-5342). In addition, the Chattel Appraiser must report the attempts to HUD’s Office of Inspector General (OIG). All referrals to the OIG should be made to the OIG Hotline’s call center at 1- 800-347-3735 or via the OIG Hotline’s website at www.hudoig.gov/hotline. Lenders, Appraisal Management Companies (AMC), and third parties are prohibited from influencing the independence of the Chattel Appraiser and the valuation process. Prohibited acts and attempts to influence the results of an appraisal include the following: • withholding or threatening to withhold timely payment or partial payment for an appraisal report; • withholding or threatening to withhold future business from a Chattel Appraiser, or demoting, terminating, or threatening to demote or terminate a Chattel Appraiser; • making expressed or implied promises of future business, promotions, or increased compensation for a Chattel Appraiser; • conditioning the ordering of an appraisal report or the payment of an appraisal fee, salary, or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary value estimate requested from a Chattel Appraiser; • requesting that a Chattel Appraiser provide an estimated, predetermined, or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that a Chattel Appraiser provide estimated values or comparable sales at any time prior to the Chattel Appraiser’s completion of an appraisal report; • providing the Chattel Appraiser with an anticipated, estimated, encouraged, or desired value for a subject Property, or a proposed or target amount to be loaned to the Borrower, except for a copy of the sales contract for purchase and any addendum, which must be provided; • providing the Chattel Appraiser, appraisal company, AMC, or any entity or person related to the Chattel Appraiser, with stock or other financial or nonfinancial benefits; • allowing the removal of a Chattel Appraiser from a list of qualified Chattel Appraisers or the addition of a Chattel Appraiser to an exclusionary list of qualified Chattel Appraisers, used by any entity, without prompt written notice to the Chattel Appraiser that includes written evidence of the Chattel Appraiser’s illegal conduct, violation of USPAP or state licensing standards, improper or unprofessional behavior, or other substantive reason for removal; • ordering, obtaining, using, or paying for a second or subsequent appraisal or Automated Valuation Model (AVM) in connection with a mortgage financing transaction, unless: o there is a reasonable basis to believe that the initial appraisal was flawed or tainted, and such appraisal is clearly and appropriately noted in the case binder; or o such appraisal or AVM was completed pursuant to a written, pre- established bona fide pre- or post-funding appraisal review, quality control process, or underwriting guidelines, and the Lender adheres to a policy of selecting the most reliable appraisal, rather than the appraisal that states the highest value; and • any other act or practice that impairs or attempts to impair an Appraiser’s independence, objectivity, or impartiality or violates law or regulation. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. TITLE II INSURED HOUSING PROGRAMS FORWARD MORTGAGES The Title II Insured Housing Programs Forward Mortgages, Origination through Post- closing/Endorsement section in this FHA Single Family Housing Policy Handbook (Handbook 4000.1) provides the origination, underwriting, closing, post-closing, and endorsement standards and procedures applicable to all Single Family (one- to four-units) Mortgages insured under Title II of the National Housing Act, except for Home Equity Conversion Mortgages (HECM). The Mortgagee must fully comply with all of the following standards and procedures in originating, underwriting, and closing for obtaining Federal Housing Administration (FHA) mortgage insurance on a Mortgage. If there are any exceptions or program-specific standards or procedures that differ from those set forth below, the exceptions or alternative program or product specific standards and procedures are explicitly stated. Terms and acronyms used in this Handbook 4000.1 have their meanings defined in the Glossary and Acronyms and in the specific section of Handbook 4000.1 in which the definitions are located.