D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages 3. Acceptable Reporting Forms and Protocols (04/10/2025) Handbook 4000.1 832 Last Revised: 11/26/2025 If the Property has a septic system, the Appraiser must visually observe it for any signs of failure or surface evidence of malfunction. If there are readily observable deficiencies, the Appraiser must require repair or further inspection. g. Roof Covering (09/14/2015) The Appraiser must notify the Mortgagee of the deficiency of MPR or MPS if the roof covering does not prevent entrance of moisture or provide reasonable future utility, durability and economy of maintenance and does not have a remaining physical life of at least two years. The Appraiser must observe the roof to determine whether there are deficiencies that present a health and safety hazard or do not allow for reasonable future utility. The Appraiser must identify the roofing material type and the condition observed in the “Improvements” section of the report. The Appraiser must report if the roof has less than two years of remaining life, and make the appraisal subject to inspection by a professional roofer. When the Appraiser is unable to view the roof, the Appraiser must explain why the roof is unobservable and report the results of the assessment of the underside of the roof, the attic, and the ceilings. h. Structural Conditions (09/14/2015) The Appraiser must report on structural conditions so that the Mortgagee can determine if the foundation and Structure of the Property will be serviceable for the life of the Mortgage. The Appraiser must perform a visual observation of the foundation and Structure of the improvements and report those results. If the Appraiser notes any structural issues, the Appraiser must address the nature of the deficiency in the appraisal where physical deficiencies or adverse conditions are reported and require inspection. i. Defective Paint (04/10/2025) If the dwelling or related improvements were built before 1978, refer to Lead-Based Paint. If the dwelling or related improvements were built in or after 1978, the Appraiser must report all defective paint surfaces on the exterior and require repair of any defective paint that exposes the subsurface to the elements. Unpainted surfaces intended to withstand the elements, such as stained or pressure-treated wood, do not require repair. j. Attic Observation Requirements (04/18/2023) The Appraiser must visually observe the interiors of attic spaces to the extent these areas are safely accessible. The Appraiser

III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 2. Default Servicing Handbook 4000.1 1316 Last Revised: 11/26/2025 (b) Roof Assembly Repair The Mortgagee must ensure that all roof assemblies, including those securing attached garages, porches and patios, detached garages and any secondary structures associated with the origination collateral, and related weatherproofing are free of active leaks or other sources of water intrusion. When a roof assembly leak is discovered, the Mortgagee must immediately repair the roofing system and mitigate further damage. The Mortgagee may provide such temporary repairs as tarping or patching until the permanent repair or replacement can be installed. The Mortgagee must ensure that permanent repairs or replacements, with materials matching or similar in color and material type, have been completed prior to conveyance to HUD. The Mortgagee is not required to obtain prior HUD approval for temporary repairs for which costs do not exceed the temporary roof repair line item allowance amount. (c) Pools, Hot Tubs, and Spas (i) In-Ground Pools, Hot Tubs, and Spas Mortgagees must secure all in-ground swimming pools, hot tubs, and spas as required by local laws, codes, and ordinances. The Mortgagee must: • secure the pool, hot tub, and/or spa with a removable safety cover anchored to the pool deck or, if a cover cannot be anchored to the pool deck, board or otherwise secure the pool, hot tub, and/or spa; and • secure and repair any fences around the pool, hot tub, and/or spa to restrict access. The Mortgagee must not drain operational in-ground pools. If the pool is empty, it is not necessary to refill the pool. The Mortgagee must drain hot tubs or spas located indoors or outdoors. The Mortgagee must perform monthly maintenance and chemical treatments for operational pools. Where the Mortgagee must repair or drain the pool to mitigate damage or safety hazards, the Mortgagee must submit an over-allowance request. (ii) Above-Ground Pools Mortgagees must secure all above-ground swimming pools as required by local laws, codes, and ordinances. In addition to local requirements, the Mortgagee must: • drain the pool; • secure the pool with a removable cover; and