Hi all, with one particular local FHA appraiser, I always run into this issue, the outlets are not grounded (as is the case in most older homes), and it is causing delays, frustration, and outright loss of business from failed deals.  Why is this an FHA concern and can you quote a guideline page, ML, or other source?

Curt

The appraiser does not have to report it. However, if he is aware of the condition and since it is a potential serious health and safety issue, it is probably wise to report it. After all it is his liability.

It is the underwriter's job to decide if this is an item that has to be repaired or not. The underwriter may decide that this is not a violation and the issue is gone. If the underwriter does not want to take the liability, there is no reason why the appraiser should take it and you should not take it also.