Is the appraiser required to provide the remaining economic life of the property?

The Appraiser must state the remaining economic life as a single number or as a range for all property types, including condominiums. The Appraiser must provide an explanation if the remaining economic life is less than 30 years.  The Appraiser must apply the appropriate technique to estimate the economic life of the subject and not just report a number without analysis.  The Mortgagee must confirm that the term of the mortgage is less than or equal to the remaining economic life of the property. 

For additional information see Handbook 4000.1 II.D.4.c.iii.(D) and II.A.3.a.ii.I.   at  https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04143