Subject: EPA's new LBP Rules

We have recently been made aware of a recent change in the EPA’s requirement for repairing paint on houses built before 1978.  It is imperative that everyone is aware of this rule as if it is not followed correctly, it could result in major appraisal issues.  When an appraiser requires paint to be repaired on a house built before 1978 the party repairing this must either be:

1)the homeowner, landlords to not count in this category

2)certified by the EPA through their Lead Based Paint Certification program, go
to www.epa.gov and search lead paint certification for details on approved contractors and how to get certified. 

We can no longer approve appraisals where paint repairs were required on homes built before 1978 without this certification on file due to this rule so please respond accordingly and tell your realtors as they are often the ones facilitating the repairs.

This comes into play on investment properties. The EPA is allowing homeowners to repair the lead based paint on their personal residences, but not on any investment properties, which would include the multitude of properties currently being flipped. On any investment property, the person performing the work must be EPA lead base paint certified and underwriters must review the certification and put a copy of it in the file.

This new rule does not apply to homes built in 1978 or after or to homeowner’s doing their own renovation, repair, or paint work of their house. This will come into effect anytime a contractor does the paint repair or a property owner/landlord does the paint repair for their rental properties on homes built before 1978.

· EPA's New Lead Based Paint Rule

Angie Davis
Appraisal Reviewer
Gateway Mortgage Group
(918)526-5230
angie.davis@gmos.us