What duties are performed by the 203(k) Consultant?

An FHA-approved 203(k) Consultant is required for all Standard 203(k) Rehabilitation Mortgage Insurance Program mortgages and may be used for Limited 203(k) mortgages.  Any Consultant who performs work on a 203(k) must be listed on the FHA 203(k) Consultant Roster.  

•    If requested by the borrower or Mortgagee to determine if a project is financially feasible, the Consultant must prepare a Feasibility Study.  
•    The Consultant must inspect the property and prepare a report on the current condition of the property that categorically examines the structure utilizing the 35 point checklist. The report must address any deficiencies that exist and certify the condition of all major systems: electrical, plumbing, heating, roofing and structural.  The Consultant must determine the repairs/improvements that are required to meet HUD’s Minimum Property Requirements (MPR), Minimum Property Standards (MPS) and local requirements.  
•    The Consultant is responsible for identifying all required architectural exhibits. The Consultant must prepare the exhibits, or, if not qualified to prepare all of the necessary exhibits, must obtain the exhibits from a qualified subcontractor. 
•    The Consultant must prepare an unbiased Work Write-Up and Cost Estimate without the use of the contractor’s estimate. The Work Write-Up and Cost Estimate must be detailed as to work being performed per the project proposal, including the necessary reports described in the Architectural Exhibit Review section of Handbook 4000.1.  
•    The Consultant must inspect the work for completion and quality of workmanship at each draw request.  
•    At the borrower’s or Mortgagee’s request, the Consultant must review the proposed changes to the Work Write-Up and prepare a change order.  
•    The Consultant must inform the Mortgagee of the progress of the rehabilitation and of any problems that arise, including:      
-    work stoppages of more than 30 consecutive days or work not progressing reasonably;      
-    significant deviations from the Work Write-Up without the Consultant’s approval;      
-    issues that could affect adherence to the program requirements or property eligibility; or      
-     issues that could affect the health and safety of the occupants or the security of the structure.  

For more information see Handbook 4000.1 II.A.9.b. 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-05033