405.08: Infestation, Dampness, or Settlement

If the appraiser indicates that there is evidence of wood-boring insects, dampness, or settlement, he or she must comment on its effect on the marketability and value of the subject property.  The lender must provide either satisfactory evidence that the condition was corrected or submit a professionally prepared report, which indicates that -- based on an inspection of the property -- the condition does not pose any threat of structural damage to the improvements.