U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, D.C. 20410-8000 January 11, 1988 OFFICE OF THE ASSISTANT SECRETARY FOR TI-392 HOUSING-FEDERAL HOUSING COMMISSIONER MEMORANDUM FOR: ALL TITLE I LENDING INSTITUTIONS Attn: Installment Loan Department SUBJECT: Obtaining Appraisal Services on Manufactured Homes This is to advise lenders of a new procedure to be followed in obtaining HUD-approved appraisals on repossessed manufactured homes that are insured under Title I of the National Housing Act. In addition, this same procedure will now make it possible for lenders to obtain HUD-approved appraisals in connection with the purchase or refinancing of existing manufactured homes that are not being repossessed. The revised Title I regulations that became effective on January 15, 1986 provide that any existing manufactured home constructed in compliance with the National Manufactured Housing Construction and Safety Standards may be financed with a Title I loan, if it is otherwise eligible. A HUD-approved appraisal is needed to establish the maximum loan amount. Over the past two years, lenders have found it difficult to obtain such appraisals due to the heavy workload on HUD's fee appraisers. In addition, the Department has been very concerned that appraisals on repossessed homes were not always provided on a timely or consistent basis. Therefore, in order to meet the need for appraisals on both repossessed and existing manufactured homes, the Department has entered into a contract with Policy Management Systems Corporation (PMS) to provide these appraisals on a nationwide basis. Effective immediately, all requests for HUD-approved appraisals required by sections 201.10(b)(2) and (3), 201.10(f)(3) and 201.51(b)(3) of the Title I regulations must be made to PMS. The only exceptions to this new procedure are requests for appraisals involving existing, repossessed or foreclosed manufactured homes and lots in combination, and requests for appraisals of manufactured home lots without the home; these requests will continue to be made to the appropriate HUD Field office. The appraisals made by PMS will reflect the retail value of comparable manufactured homes in similar condition and in the same geographic area as the subject home, as listed in the current value rating publication issued by N.A.D.A. Appraisal Guides, Inc. All estimates of value will be in effect for six months from the date of the appraisal. In addition, for repossessed manufactured homes, PMS will provide an estimated cost of any repairs needed to make the home marketable. This estimated repair cost is developed by a computerized system, using a data base of local labor and material costs obtained from a nationwide network of over 10,000 contractors and building suppliers and updated monthly. Procedure for Obtaining Appraisals Requests for appraisals should be made directly to PMS on Form HUD-92802, Application for Mobile Home Appraisal, and accompanied by a blank HUD-92802-B, Statement of Appraised Value. Your request should be sent to the nearest PMS branch office as shown on the attached list. We are in the process of revising these forms; until the new application form is available, it is essential that these instructions be followed in completing the HUD-92802: 1. If you are requesting an appraisal on an existing home that has not been repossessed, cross out the word "(REPOSSESSION)" in the heading on both forms. 2. In requesting an appraisal on a repossessed manufactured home, you must provide the 12-digit FHA case number in the upper right corner of the form. Normally, the first five digits of this number is your Title I contract number; however, if you are servicing loans which have been transferred to you from another lender since March 1, 1987, the first five digits will be the contract number of the originating lender. On all requests for existing home appraisals, the FHA case number will be assigned by HUD when the existing home loan is reported for insurance. 3. Above the date, give the name, affiliation (i.e., borrower, dealer, park manager, etc.), and telephone number of the person to be contacted for an appraisal appointment. 4. Above the lender's signature, give the name, billing address and telephone number of the lender. 5. For appraisals on repossessed homes, the application form must be accompanied by copies of the manufacturer's invoice and the retail installment contract. 6. For appraisals on existing homes, the application form should be accompanied by a copy of the purchase contract or retail installment contract for the sale of the home to the new borrower. Appraisal Cost and Time Schedule All manufactured home appraisals will be provided by PMS at a cost of $73.50 per appraisal. If PMS cannot complete an appraisal after arriving on-site, either because the home is not at the reported location or an appointment is broken, you will be charged one-half the normal fee ($36.75). When the appraisal is reordered and completed, the full fee of $73.50 will be charged. You are reminded that, to be eligible for Title I loan insurance, existing manufactured homes must have been constructed in compliance with the National Manufactured Housing Construction and Safety Standards, as evidenced by the HUD seal on the home. If the appraiser finds that the home has no seal, the appraisal will not be completed, and you will be charged one-half the normal fee ($36.75). PMS is required to complete its appraisal and send you a Statement of Appraised Value within 20 working days from receipt of the request by PMS. Therefore, you can reasonably expect to receive the results of their appraisal within 35 calendar days from the date you mail your request to PMS. Appeals of Appraised Value If you wish the appraised value to be reconsidered, you must submit a request to PMS, supported by current and relevant comparable sales data. You will be charged one-half of the normal appraisal fee ($36.75) for PMS to review your appeal. The Department will be the final arbiter if the matter cannot be resolved between PMS and the lender. For Further Information If you need additional information on this new appraisal procedure, please write to Robert J. Coyle, Director, Title I Insurance Division, 451 Seventh Street, S.W., Room 9160, Washington, D.C. 20410 or call the Division on (202) 755-6880. Sincerely yours, Thomas T. Demery Assistant Secretary Attachment _____________________________________________________________________ POLICY MANAGEMENT SYSTEMS CORPORATION GENERAL INFORMATION SERVICES TITLE I MANUFACTURED HOUSING APPRAISAL DIRECTORY Raymond Conrad Covey D. Collier HUD Project Manager HUD Assistant Project Manager (404) 955-5252 (803) 735-4727 1 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER ALASKA 440 W. Colorado Street Richard C. Thomas Glendale, CA (206) 226-6890 PO Box 300 Glendale, CA 91209-0300 ALABAMA 2024 Powers Ferry Road Charlie Hood Suite 200 (404) 955-5252 Atlanta, GA 30339-50111 PO Box 724872 Atlanta, GA 30339-1872 ARIZONA 3001 W. Indian School Rd. Donald Johnson Eaton Plaza, Suite 306 (602) 264-4242 Phoenix AZ 85017 PO Box 29018 Phoenix, AZ 85038-9018 ARKANSAS 2450 Severn Avenue Paul Krawiec Metairie, LA (504) 834-5092 PO Box 73468 Metairie, LA 70033 CALIFORNIA Fresno, CA Jeffrey Gartner 4759 East Olive, Suite 104 (209) 251-0861 Fresno, CA 93702 PO Box 11126 Fresno, CA 93771-1126 Loma Linda, CA Jim Butler 11165 Mountain View Ave. (714) 796-3881 Suite 148 PO Box 1070 Loma Linda, CA 92354-1070 Orange County, CA Kathleen Robles 703 North Poplar St (714) 978-6298 Orange, CA 92668 PO Box 5965 Orange, CA 92613-5965 2 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER CALIFORNIA Sacramento, CA Donald Knestrict 5580-H Power Inn Road (916) 383-0977 Sacramento, CA 95820 PO Box 15526 Sacramento, CA 95852-5526 San Diego, CA Christy Smith Suite 468 (619) 299-1711 Mission Valley Center West 824 Camino Del Rio North San Diego, CA 92108 PO Box 82198 San Diego, CA 92138-2189 San Francisco, CA Philip G. Jones 150 North Hill Dr. (415) 467-3520 Suite 17 Brisbane, CA 94005 PO Box 880370 San Francisco, CA 94188-0370 COLORADO 12000 East 47th Avenue Tom Bell Suite 116 (303) 373-1713 Denver, CO 80239 PO Box 39516 Denver, CO 80239-9516 CONNECTICUT 630 Oakwood Avenue Elaine Guardini W. Hartford, CT 06110 (203) 522-5122 Box 10248 W. Hartford, CT 06110 DELAWARE 307 Fellowship Road Paul Sawyer Suite 214 (215) 528-5935 Mount Laurel, NJ 08054 DIST. OF COLA. 8014 Midlothian Turnpike Chester Wright, Jr. Suite 315 (804) 272-9777 Richmond VA 23235 PO Box 35422 Richmond, VA 23235-5422 3 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER FLORIDA 445 Douglas Avenue Samuel Thomas Suite 1205 (305) 682-6758 Altamonte Springs, FL 31714 PO Box 161569 Altamonte Springs, FL 32716-1569 GEORGIA 2024 Powers Ferry Road Charlie Hood Suite 200 (404) 955-5252 Atlanta, GA 30339-5011 PO Box 724872 Atlanta, GA 30339-1872 HAWAII 440 W. Colorado Street Richard C. Thomas Glendale, CA 91209 (818) 246-7466 PO Box 300 Glendale, CA 91209-0300 IDAHO 2536 152nd Avenue, NE Russell Lavallee Suite E (206) 883-7523 Redmond, WA 98052 PO Box 3276 Bellevue, WA 98009-3276 ILLINOIS 188 Industrial Drive Jim Lane Suite 214 (312) 530-6770 Elmhurst, IL 60126 PO Box 378 Addison, IL 60101-0378 INDIANA 8250 Haverstick Road Ray Carpenter Suite 200 (317) 255-6666 Indianapolis, IN 46240 PO Box 55245-Bacon Station Indianapolis, IN 46205-0245 IOWA 1535 Linden Janice Caldwell Suite 100 (515) 243-6400 Des Moines, IA 50309 KANSAS 11050 Roe Steve Phelps Suite 240 (913) 491-4351 Overland Park, KS 66211 KENTUCKY 644 Phillips Lane Jerry Smith Louisville, KY 40209 (502) 361-3685 PO Box 17127 Shelby Station Louisville, KY 40217-7127 4 _____________________________________________________________________ GENERAL INFORMATION SERVICES STATE OFFICE TO CONTACT BRANCH MANAGER LOUISIANA 2450 Severn Avenue Paul Krawiec Suite 222 Metairie, LA 70001 (504) 834-5092 PO Box 73468 Metairie, LA 70033 MAINE 142 High Street Arthur Mackeil Room 412 (207) 722-0606 Portland, ME 04101 PO Box 4058, Station A Portland, ME 04101-4058 MARYLAND 6600 York Road Richard Schulkay Baltimore, MD 21212 (301) 377-4664 MASSACHUSETTS 179 South Street Richard Savoie Boston, MA 02111 (617) 482-4270 PO Box 9149 Boston, MA 02205 MICHIGAN 26400 Lahser Road Gus Habitz Suite 302 (313) 350-8550 Southfield, MI 48034-2624 PO Box 5134 Southfield, MI 48086-5134 MINNESOTA 33 10th Avenue South Dale Egberg Suite 301 (612) 938-1400 Hopkins, MN 55343 PO Box 457 Hopkins, MN 55343-0457 MISSISSIPPI 2450 Severn Avenue Paul Krawiec Metairie, LA 70001 (504) 834-5092 PO Box 73468 Metairie, LA 70033 MISSOURI 11050 Roe Steve Phelps Suite 240 (913) 491-4352 Overland Park, KS 66211 MONTANA PO Box 6668 Harry Orvin Great Falls, MT 59406 (406) 453-3338 5 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER NEBRASKA PO Box 6668 Harry Orvin Great Falls, MT 59406 (406) 453-3338 NEVADA (Northern) Donald Knestrict 5580-H Power Inn Road (916) 383-0977 Sacramento, CA 95820 PO Box 15526 Sacramento, CA 95852-5526 (Southern) Donald Johnson 3001 W. Indian School Road (602) 264-4242 Phoenix, AZ 85017 PO Box 29018 Phoenix, AZ 85038-9018 NEW HAMPSHIRE 142 High Street Arthur MacKeil Room 412 (207) 772-0606 Portland, ME 04101 PO Box 4058, Station A Portland, ME 04101-4058 NEW JERSEY 1600 Route 208 Michael Wiley Fair Lawn, NJ 07410 (201) 797-4800 PO Box 487 Fair Lawn, NJ 07410-0487 NEW MEXICO 201 Eubank NE, Suite A-1 Joseph Carr Albuquerque, NM 87123 - (505) 292-8121 PO Box 13027 Albuquerque, NM 87192 NEW YORK 1215 Western Avenue Open, Manager Albany, NY 12203 (518) 482-6806 PO Box 3977 Albany, NY 12203 NORTH CAROLINA 2024 Powers Ferry Road Charlie Hood Suite 200 (404) 955-5252 Atlanta, GA 30339-5011 PO Box 724872 Atlanta, GA 30339-1872 NORTH DAKOTA PO Box 6668 Harry Orvin Great Falls, MT 59406 (406) 453-3338 6 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER OHIO 6500 Pearl Road Jim McKendry Suite 205 (216) 886-7117 Parma Heights, OH 44130 PO Box 30293 Cleveland, OH 44130-0293 Counties for Cleveland Address Ashtabula Mahoning Columbiana Medina Cuyahogo Portage Geauga Stark Lake Summitt Loraine Trumbull OHIO 26400 Lahser Road Gus Habitz Suite 302 (313) 350-8550 Southfield, MI 48034-2624 PO Box 5134 Southfield, MI 48086-5134 Counties for Detroit Address Defiance Ottawa Erie Paulding Fulton Putnam Hancock Sandushy Henry Seneca Huron Williams Lucas Wood (All remaining counties use Columbus, OH) OHIO 1384 Grandview Avenue Ken Botts Suite 203 (614) 481-8861 Columbus, OH 43212 PO Box 12187 Columbus, OH 43212-0187 OKLAHOMA 12377 Merit Drive Gerald Adams Suite 9000 (214) 233-9309 Dallas, TX 75251-6082 PO Box 516083 Dallas, TX 75251-6083 OREGON 8285 SW Nimbus Avenue Bob Andrew Suite 108 (503) 646-4020 Beaverton, OR 97005 PO Box 2049A 91209-0300 Beaverton, OR 97075 7 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER PENNSYLVANIA 6600 York Road Richard Schulkay Baltimore, MD 21212 (301) 377-4664 Counties for Baltimore Address Adams Perry Cumberland Lancaster Dauphin Lackawanna Lebonon York 6500 Pearl Road, Suite 205 Jim McKendry Parma Heights, OH 44130 (216) 886-7117 PO Box 30293 Cleveland, OH 44130-0293 Counties for Cleveland Address Allegheny Forest Armstrong Franklin Beaver Fulton Bedford Greene Blair Huntingdon Butler Indiana Cambria Jefferson Cameron Lawrence Centre Mercer Clarion Mc Kean Clerfield Potter Clinton Somerset Crawford Venango Elk Warren Erie Washington Fayette Westmoreland PENNSYLVANIA 307 Fellowship Road Paul Sawyer Suite 214 (215) 528-5935 Mount Laurel, NJ 08054 Counties for Mt Laurel Address Berks Luzerne Bucks Lycoming Bradford Mifflin Carbon Monroe Chester Montgomery Columbia Montour Delaware Northumberland Juniatia Philadelphia Lehigh Pike 8 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER PENNSYLVANIA Counties for Mt Laurel Address Schuykill Tioga Snyder Union Sullivan Wayne Susquehanna Wyoming RHODE ISLAND 179 South Street Richard Savoie Boston, MA 02111 (617) 482-4270 PO Box 9149 Boston, MA 02205 SOUTH CAROLINA 2024 Powers Ferry Road Charles Hood Suite 200 (404) 955-5252 Atlanta, GA 30339-5011 PO Box 724872 Atlanta, GA 30339-1872 SOUTH DAKOTA PO Box 6668 Harry Orvin Great Falls, MT 59406 (406) 453-3338 TENNESSEE 2131 Murfreesboro Road Nicholas Kinkley Suite L5 (615) 366-8057 Nashville, TN 37217 PO Box 171044 Nashville, TN 37217-1044 TEXAS 12377 Merit Drive Bob Barber Suite 9000 (214) 233-9309 Dallas, TX 75251 PO Box 516083 Dallas, Texas 75251-6083 2939 Mossrock Michael Lambar Suite 150 (512) 349-4935 San Antonio, TX 78230 PO Box 5840 San Antonio, TX 78230 (San Antonio handles the southern part of Texas from Beaumont, Houston, Austin and San Antonio South.) UTAH 300 East 4500 South Richard Berrett Suite 1 (801) 266-1139 Salt Lake City, UT 84107 PO Box 7528 Salt Lake City, UT 84107-7528 9 _____________________________________________________________________ GENERAL INFORMATION SERVICES DIRECTORY STATE OFFICE TO CONTACT BRANCH MANAGER VERMONT 179 South Street Richard Savoie Boston, MA 02111 (617) 482-4270 PO Box 9149 Boston, MA 02205 VIRGINIA 8014 Midlothian Turnpike Chester Wright, Jr. Suite 315 (804) 272-9777 Richmond, VA 23235 PO Box 35422 Richmond, VA 23235-5422 WASHINGTON 2563 152nd Avenue, NE Russell Lavallee Suite E (206) 883-7523 Redmond, WA 98052 PO Box 3276 Bellevue, WA 98009-3276 WEST VIRGINIA 1384 Grandview Avenue Ken Botts Suite 203 (614) 481-8861 Columbus, OH 43212 PO Box 12187 Columbus, OH 43212-0187 WISCONSIN 250 Bishops Way Walter Breen Brookfield, WI 53005 (414) 784-5630 WYOMING 12000 East 47th Avenue Tom Bell Suite 113 (303) 373-1713 PO Box 39516 Denver, CO 80239-9516 10