For exterior-only appraisals using COVID-19 temporary, the report should be linked to the lender's link.
There is a comprehensive list of resources.
You can get information from other Fannie Mae published sources if you have additional questions.
In order to support mortgage originations, Fannie Mae and Freddie Mac have provided guidance on several policy areas.Additional information on the temporary policies can be found in these FAQ.We encourage you to check in frequently for updates because we will be adding more FAQ.
The numbering sequence is from a PDF document.For easier reference, these have been separated.FAQ, lender letters and other resources can be found below.
Yes.Evaluating and developing any information deemed credible is allowed by USPAP.The removal of certification 10 is due to the fact that the appraiser may have relied on information from an interested party to complete the transaction.Additional verification may not have been possible.
The broker, homeowner, public records, and/or other online tools can be used to obtain the necessary property information.A good faith effort should be made to provide information that is reasonable.If there is not enough information about the property, the mortgage will not be eligible for sale to us.
Current photos and data about the subject property are more likely to be found in homes for sale.If there is any information in the MLS, it is very dated.Current information about the home's condition that might not be available otherwise is provided by having the appraiser complete an exterior inspection.We still need a traditional appraisal for all cash-out and non-Fannie Mae owned loans.
The scope of work is identified by this.Because we are allowing desktop appraisals to be completed on forms that are typically used for interior and exterior inspection appraisals, we will be relying on the text in the Map Reference field to identify the type of appraisal completed.When applicable, the Map Reference field should showdesktop.
The scope of work is identified by this.Because we are allowing exterior-only appraisals to be completed on forms that are typically used for interior and exterior inspection appraisals, we will be relying on the text in the Map Reference field to identify the type of appraisal.It is important that the map reference field shows the exterior.
The appraisals on Forms 1004 and 1073 will be scored the same way as traditional appraisals.
Yes.The appraisal will be assessed for valuation representation and warranty relief when it is submitted for a desktop appraisal.All appraisals with a risk score of 2.5 or less that meet the requirements of the Selling Guide will receive valuation representation and warranty relief.
The modified scope of work, statements of assumptions and limiting conditions, and appraiser's certifications addressed in the Lender Letter must be copied and pasted into a text addendum with no edits or alterations.This can be done as part of a general text addendum.
The requirement for the appraisal to be submitted subject to an extraordinary assumption has been removed by the revised scope of work and certification.The desktop or exterior-only inspection appraisal is not acceptable if adequate information about the subject property isn't available from a credible source.They must have reliable data sources.An extraordinary assumption is the assumption that data sources are correct.
There must be a front photo of the property.In order to pass through automated review systems used by many lenders and AMCs, it is necessary for the report to include all photos required for an appraisal based on an interior and exterior inspection.All photos that are available should be included in the appraisal.
A photo of a statement saying that the photo was not available is included with the required front photo.
The front of the property must be photographed by the appraiser.The appraiser can provide photographs from credible secondary data sources.Although not required, a comparable photos page with images may be necessary to allow the appraisal report to pass automated system requirements.
We will allow the use of Interior/Exterior forms for two- to four-unit and manufactured homes with the appropriate scope of work, statements of assumptions and limiting conditions.
If the property owner allows the appraiser to access the site, they can get a photo of the HUD certification label.The owner or an individual that has access to the property may be asked to provide a photo of the HUD certification label by email or other means.
A photo of the HUD Data Plate can be provided by the borrower, owner, or individual that has access to the property interior.To complete the assignment type ordered, the appraiser will need to communicate with the lender or AMC.
No.The appraisal types that are suitable for each transaction type are listed in the Lender Letter.Documentation showing that a traditional appraisal could not be obtained due to COVID-19 is not required for mortgages with one of the permitted flexibilities.The flexibilities are described in the lender letter.
Flexibilities can be used in our lender letter.It is likely that travel restrictions will vary from location to location.Sometimes an appraisal can't be obtained until circumstances change.
No.The appraiser's certification was removed due to the fact that they may have to rely on information from an interested party to complete the transaction.Additional verification may not be possible.The assignment could be affected by the removal of this certification.The assignment cannot be completed if adequate information is not available.
As they deem appropriate, each lender will need to operationalize.Some lenders use the sales contract price in order to estimate the LTV ratio prior to ordering the appraisal in cases where the lender is not certain they will be able to get an interior and exterior inspection appraisal.
Guidance specific to this topic has been issued by the Appraisal Standards Board.They show that the modified appraisal report form does not result in a violation of USPAP.The Q&A can be found on the website.
Yes.The scope of work may be expanded beyond the minimum requirements if the appraiser deems it necessary.The appraisal type agreed to with the acceptance of the assignment and the minimum scope of work required would be reflected in the entry of "desktop".
The Impact of COVID-19 on Appraisals must be completed on the following appraisal forms.
When Fannie Mae performs quality control or any other post purchase reviews on these appraisal reports, they will be based on the modified scope of work for the exterior-only inspection appraisals.The description of the property must be complete, and the opinion of its market value needs to be supported.The review will include an assessment of whether there are property deficiencies, including those impacting safety, soundness, or structural integrity, that were reasonably discoverable in the normal course of business, given the applicable scope of work.
Yes.In addition to the plans, specification and other photograph exhibits, a builder must provide photos of the bedrooms.
No.All requirements in the permissible appraisal requirements chart are included in new construction purchase transactions.A traditional appraisal report is required for second homes with an LTV greater than 85%.
No.The 1073, 1004c, 1025, and 2090) require the appraiser to certify that he performed a complete visual inspection of the interior and exterior areas.
This technology can be used as a means of augmenting the exterior-only and/or desktop appraisal flexibilities we announced for COVID-19.The case may be that these are eitherdesktop orexterior.
No other entries can be included in the Map Reference field for a desktop appraisal report.The lender has a responsibility to make sure the appraisal is accurate.
No other entries can be included in the Map Reference field for an exterior-only appraisal report.The lender has a responsibility to make sure the appraisal is accurate.
No.To qualify for recourse removal, an independent on-site inspection is required for a Homestyle Renovation loan.
The minimum scope of work must be reflected in the Map Reference field as it represents the desktop assignment.
No.To qualify for recourse removal, an independent on-site inspection is required for a Homestyle Renovation loan.
Flexibilities can be applied to limited cash-out refinance transactions when the loan is owned by us.To help the lender apply these flexibilities.The borrower's existing loan has been identified by DU as a Fannie Mae loan.WhenDU finds an active Fannie Mae first mortgage loan for the subject property address, and also confirms that the Social Security number of at least one of the borrowers on the loan casefile matches, this message is issued.
No.Fannie Mae does not allow the execution of appraisal waivers for loan transactions in which the lender has obtained an appraisal.There are appraisals using the COVID-19 appraisal flexibilities.Before ordering an appraisal, we recommend that you review the DU Underwriting Findings report to determine your appraisal waiver eligibility.
Yes.In states where a UCC-1 is used to record security interest in a co-op's stock, Fannie Mae policy requires that lenders give document custodians the original executed or a copy of the financing statement that bears the file stamp from the relevant filing office.Un recorded originals or copies of UCC-1 financing statements that do not bear the file stamp of the relevant office may not be certified by document custodians.Flexibilities for co-op share loan documentation have not been provided by us.Refer to the Co-op Share Loan Documentation Requirements for more information.
No.The 1004 desktop (70D) and hybrid (70H) are not acceptable for use with the COVID-19 appraisal flexibilities because they are only used in a few instances for testing.The eligible forms for desktop appraisals can be used with the COVID-19 appraisal flexibilities.
No.The temporary COVID-19 appraisal flexibilities only allow a desktop appraisal to be used for a purchase transaction, and B4-1.2-02 requires that the new transaction must be a no-cash out refinance.
Yes.The exterior appraisal can be used for a limited cash out transaction only if the temporary COVID-19 appraisal flexibilities are allowed.The Lender Letter and Selling Guide requirements include the age of appraisal, appraisal updates, and use of an appraisal for subsequent transactions.
No.A data source for all relevant characteristics, including interior condition, and reference the source used in the report is required when completing an exterior-only or desktop appraisal.It is not acceptable to assume that the property is similar to the exterior of the home.
The appraisal must report the condition of the improvements in specific terms in order to be approved for use with desktop and exterior-only appraisals.Subject property information from third-party data sources can be used by the appraiser.
The loan is not eligible for sale to Fannie Mae if there is insufficient information about the property to complete the appraisal assignment.