January 9, 2001
					           	 In Reply Refer to:373/26
                						         	  LOCAL RELEASE 26-01-01


TO:	PROGRAM PARTICIPANTS


SUBJ:	REVISED FEE SCHEDULE INVOLVING VA APPRAISALS
                     AND INSPECTIONS IN NEW ENGLAND


Please refer to the enclosed revised schedule for fees associated with appraisals and inspections
for properties located in New England (CT, MA, ME, NH, RI and VT).  The changes to the schedule involve fees for 2-4
family dwellings and the mileage allowance.  The new schedule is effective for assignments made by the VA
Appraisal Assignment System (VAAS) on or after February 1, 2001.


Why were fees increased for multi-family appraisals?


The new VA Lender's Handbook requires the use of the Small Residential Income Property Appraisal Report
(Freddie Mac Form 72/Fannie Mae Form 1025) for 2-4 living unit properties effective January 1, 2001.  
We have received evidence that the customary fee for conventinal multi-family dwelling appraisals in this region
averages approximately $450.00.  It is noted that VA does not require the Operating Income Statement
addendum to this report.


Why were mileage fees increased?


The mileage rate was increased to equal the current federal rate of 32.5 cents per mile.


What about condominium appraisal fees?


Although the Individual Condominium Unit Appraisal report, Freddie Mac Form 465/Fannie Mae Form 1073,
is now required for VA condominium unit appraisals, we have determined that the current fee of $350.00 is
reasonable.


Please call our Appraisal Section at (800)827-6311, extension 6, if there are any questions.


Sincerely,




W.P. Geagan
Acting Loan Guaranty Officer





 
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