```markdown
## II. Origination Through Post-Closing/Endorsement

### D. Appraiser and Property Requirements for Title If Forward and Reverse Mortgages

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

##### (5) Overhead Electric Power Transmission and Local Distribution Lines

###### (a) Definitions

- **Overhead Electric Power Transmission Lines** refer to electric lines that supply power from power generation stations to Local Distribution Lines.
- **Local Distribution Lines** refer to electric lines that commonly supply power to residential housing developments, similar facilities, and individual Properties.

###### (b) Required Analysis and Reporting

- The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the Overhead Electric Power Transmission Lines or the Local Distribution Lines pass directly over any dwelling, Structure, or related property improvement, including pools, spas, or water features.
- The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the dwelling or related property improvements are located within an Easement or if they appear to be located within an unsafe distance of any power line or tower.
- The Appraiser must note and comment on the effect on marketability resulting from the proximity to such site hazards and nuisances. The Appraiser must also determine if the guidelines for Encroachments apply.

##### (6) Smoke, Fumes, and Offensive or Noxious Odors

- The Appraiser must notify the Mortgagee if excessive smoke, chemical fumes, noxious odors, stagnant ponds or marshes, poor surface drainage, or excessive dampness threaten the health and safety of the occupants or the marketability of the Property.
- The Appraiser must consider the effect of the condition in the valuation of the Property if the conditions exist but do not threaten the occupants or marketability.

##### (7) Stationary Storage Tanks

- If the subject property line is located within 300 feet of an aboveground, stationary storage tank with a capacity of more than 1,000 gallons of flammable or explosive material, then the Property is ineligible for FHA insurance, and the Appraiser must notify the Mortgagee of the deficiency of MPR or MPS.

**Handbook 4000.1 826**  
*Last Revised: 01/10/2025*
```