Department of Veterans Affairs Seal
DEPARTMENT OF VETERANS AFFAIRS
Regional Office
PO Box 100023
Decatur GA 30031-7023
www.vba.va.gov/ro/atlanta/rlc



March 14, 2006
In Reply Refer to: 316/261
Loan Guaranty Bulletin 261-06-05
To:   Lenders, Servicers, and Fee Appraisers
Subj:   Manufactured Home Appraisal Report
PURPOSE:
The purpose of this bulletin is to provide information to program participants on the use of the new Manufactured Home Appraisal Report (Freddie Mac Form 70B/Fannie Mae Form 1004C, dated March 2005) for Department of Veterans Affair's (VA) manufactured home appraisals.

BACKGROUND:
a.  At the present time, VA appraisal reports for manufactured homes (MH) appraised as real estate are required to be completed on the same appraisal report form as site built single-family residences, Uniform Residential Appraisal Report (URAR), Freddie Mac Form 70/Fannie Mae Form 1004.

b.  Our analysis of the new Manufactured Home Appraisal Report has resulted in the determination that its use is preferable to the URAR for MH appraisals, as it was specifically designed to identify MH information in detail and should allow for a more comprehensive and consistent MH appraisal report that is easier to prepare and read.

DETAILS:
a.  Effective immediately, the Manufactured Home Appraisal Report (dated March 2005) may be used for all VA appraisals for manufactured homes.

b.  On April 1, 2006, the use of the Manufactured Home Appraisal Report (dated March 2005) is mandatory for all VA manufactured home appraisals. MH appraisals that are completed on or after April 1, 2006, using any other form will be unacceptable to VA.

c.  The new Manufactured Home Appraisal Report is available online at: Fannie Mae's website: http://www.efanniemae.com/sf/formsdocs/forms/1004c.jsp and at Freddie Mac's website: http://www.freddiemac.com/sell/forms/.

d.  The new Manufactured Home Appraisal Report form must be acceptably completed, including entries for all relevant questions based on personal observation. In addition, VA fee appraisers must identify and require correction of deficiencies or conditions necessary to ensure the subject property meets applicable VA minimum property requirements.

e.  Fee appraisers are expected to be familiar with State and local code laws or regulations in their locality governing manufactured homes (such as missing HUD labels, alterations, modifications, additions, component replacements), and to make appropriate requirements for compliance.

f.  The Cost Approach is not required for VA purposes, but may be completed to supplement the indicated value in the Sales Comparison Approach. Since VA relies exclusively on the sales comparison approach to value (except in very unusual circumstances), the VA value estimate (market value) should never exceed that indicated in the Sales Comparison Approach.

ACTION:
VA fee appraisers are encouraged to become familiar with the new form as soon as possible. Requests for additional information or further clarification should be made as soon as possible to the Construction and Valuation Section at the VA Regional Loan Center of jurisdiction, so that any prospective issues may be promptly addressed. You may e-mail the Atlanta Regional Loan Center's C&V Section at 16/Correspondence@vba.va.gov or call 888-768-2132, option 3.

RESCISSION:
This bulletin is rescinded October 1, 2007.


Loan Guaranty Officer Signature Block
THOMAS H. BUFFTON, JR.
Loan Guaranty Officer