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Topic

    Martin
    FHA Phase I ESA
    Topic posted January 24, 2012 by MartinContributor, last edited February 5, 2012
    481 Views, 4 Comments
    Title:
    FHA Phase I ESA
    Content:

    Is anyone familiar with a special reliance form for FHA status approval?

    Comment

     

    • Lauren617
      posted January 25, 2012 by Lauren617Elite Contributor

      Tiffani, 

      There are a number of threads on cg regarding HUD requirements. Are you referring to requirements for the Multifamily Accelerated Processing(MAP) program? 

      -Lauren 

    • dcrocker
      posted January 25, 2012 by dcrockerElite Contributor

      I reached out to an EP who specializes in HUD work w/ this response:

       

      "This is a very broad question! More specificity would be helpful, especially w/ the term "FHA status approval.

      There are many HUD regulations, guidebooks and requirements that have various types FHA Approvals.   As for special reliance, if this is in reference to an ESA or PCNA report then, yes, there is standard Certification Language (but it is not referred to as special reliance).  All of this is detailed in the HUD Multifamily Accelerated Process (MAP) guide.

      An EP does not require FHA approval prior to performing ESA’s for FHA mortgage insurance.   There is no formal ESA provider approval process for HUD – FHA.  However, there are special certification language and out-of-scope items that must be in each ESA prepared for a HUD commitment."

       

      Hope that helps. Link to latest MAP guide is here

      Dianne

       

       

       

    • Show/Hide Replies
      Martin
      posted January 25, 2012 by MartinContributor

       I know there are additional requirements for FHA.  The issue is that my client is requesting ASTM 1527-05 - no additonal scope items - and a third party reliance for FHA.   I have asked that they provide the form they wish to use for the third party reliance and they requested just our standard form.  I have never encountered this - and have tried to explain that there are additional requirements - but they are certain this is all they need.  I was hoping maybe somewhere some had ran into a similar situation and could point me in the direction of a FHA approved third party reliance letter. 

      • Brian Olin, PG
        posted February 5, 2012 by Brian Olin, PGSuper Contributor
        I have not seen a specific relianace letter but they do have specific requirements as you indicated to your client. Depending on the type of FHA loan some of the other requirements can be significantly outside the standard scope. The MAP guide previously mentioned would be a good place to start and you can even refer your client to it. If they still insist on just a standard Phase I, I would put in writing to your client about the additional requirements typically associated with FHA loans so if the question comes up later you have it documented. Once you complete the Phase I you should send the the approval letter for their approval first and indicate that there will be an additional fee if you need to redo the Phase I with special requirements or a special form or relianace letter after the fact.