FANNIE MAE & FREDDIE MAC RELEASED THEIR GUIDELINES FOR THEIR NEW DESKTOP APPRAISAL PROGRAMS

February 9, 2022

INCLUDING BOTH APPRAISER AND LENDER RESPONSIBILITIES

WHAT SHOULD YOU KEEP IN MIND AS AN APPRAISER?

BASIC ELIGIBILITY AS OUTLINED BY FANNIE MAE:
  • Purchase Transactions
  • One-unit properties
  • Primary Residence
  • LTV less than or equal to 90%
  • DU Approve/Eligible Recommendation

WHAT FORM DO YOU USE?

  • Desktop Appraisals will use
    form 1004/70D Desktop

ADDITIONAL CONSIDERATIONS:

  • There will be instances where it is not appropriate for the appraiser to perform the desktop appraisal and an interior & exterior inspection will be required
  • The final report must include a floor plan, not a sketch. Follow the links to see how Fannie and Freddie define the difference.
    • Both Fannie and Freddie allow the use of technology platforms consistent with USPAP to obtain reliable information.
  • At a minimum, desktop appraisals must include photos of the front, rear, and street view, as well as kitchen, all bathrooms, and main living area of the subject property.
  • If the appraiser does not have sufficient information to complete a credible report, they must refuse the assignment
    • This means the appraiser must have enough information to identify the relevant property characteristics of both the exterior and interior, render an opinion on the properties quality and condition, and develop a credible opinion of value without the use of an assumption.
  • Any information provided to the appraiser from someone with a financial interest (i.e. homeowner, broker, agent, etc.) must be verified through a third-party, disinterested source.
HOW WILL CLASS VALUATION FIELD DESKTOP ORDERS?
  • All desktop appraisal orders will be processed as a Class Valuation Digital Appraisal.
  • Understanding the majority of homes will not have the necessary data for an appraiser to complete a credible report, we will default to a Digital Appraisal in all available markets and send a 3D Property Scanner to the home to collect a full suite of data and expedite this process. (In the rare case that an order is placed where Digital Appraisal is not available, a Traditional 1004 will be completed)
  • We are confident this process will provide consumers with a better experience and save our clients significant time rather than wasting several days only to have the appraiser reveal there is not enough information available to complete the assignment as requested.
  • Upon completion of the digital appraisal, the client will then receive the full property scan and all associated data along with the completed report allowing for 100% transparency in the entire appraisal process.  
  • Note: If a desktop order is placed in a region where our digital appraisals have not yet launched, we will default to a traditional appraisal.
More to come on how we can work together on how we can help the market adapt by gathering this data at time of list. This technology can be utilized to enhance the marketing presence of the property while also capturing everything needed to support the desktop appraisal. 
WHAT TO LEARN MORE?
Appraiser Spotlight

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