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# Pos

## ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT

### Appraiser and Property Requirements for Title II Forward and Reverse Mortgages

#### Acceptable Reporting Forms and Protocols (04/10/2025)

##### b. Minimum Property Requirements and Minimum Property Standards (08/19/2024)

MPR and MPS form the basis for identifying the deficiencies of the Property that the Appraiser must note within the appraisal report.

###### i. Legal Requirements

####### (A) Real Estate Entity

The Appraiser must contact the Mortgagee if the subject Property is not a single, marketable real estate entity, and/or does not consist of a primary plot with a secondary plot contributing to the use and marketability of the Property as a single marketable real estate entity.

####### (B) Property Rights

######## (1) Definition

- **Fee Simple** refers to an absolute ownership unencumbered by any other interest or estate.
- **Leasehold** refers to the right to hold or use Property for a fixed period of time at a given price, without transfer of ownership, on the basis of a lease contract.

######## (2) Standard

An Appraiser must contact the Mortgagee if the property rights to be appraised are not on real estate held in Fee Simple or Leasehold that comply with HUD’s requirements below.

####### (C) Planned Unit Development

######## (1) Definition

A **Planned Unit Development (PUD)** refers to a residential development that contains, within the overall boundary of the subdivision, common areas and facilities owned by a Homeowners’ Association (HOA), to which all homeowners must belong and to which they must pay lien-supported assessments. A unit in a PUD consists of the fee or leasehold title to the real estate represented by the land and the improvements thereon plus the benefits arising from ownership of an interest in the HOA.

######## (2) Required Analysis and Reporting

The Appraiser must identify the name of the PUD and indicate that the subject is located in a PUD by checking the PUD box on the appraisal form. The Appraiser must also enter the dollar amount of the HOA fee and mark the box indicating if the fees are paid “per year” or “per month.”

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**Handbook 4000.1**  
*Last Revised: 01/10/2025*
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