As a result of the COVID-19 national emergency, in many cases lenders are unable to obtain an appraisal based on a full interior and exterior inspection of the subject property. In response, Fannie Mae is allowing temporary flexibility to their appraisal requirements.
The Lender Letter (LL-2020-04) provides information about the following:
▪ Temporary appraisal requirement flexibilities: allowing exterior-only inspection appraisals or desktop appraisals
▪ Desktop appraisals: allowing for purchase transactions when an interior and exterior appraisal is not available
▪ Exterior-only inspection appraisals: allowing for purchase and refinances of Fannie Mae-owned loans
▪ Revisions to the scope of work, statements of assumptions and limited conditions, and appraiser’s certifications: requiring modified language to be used with exterior-only and desktop appraisals
▪ Additional form instructions for appraisals: requiring identification of “exterior” or “desktop” on the interior and exterior reports
▪ Identification of a Fannie Mae loan: reminding lenders about our Loan Lookup tool to identify Fannie Mae-owned loans
▪ Appraisal waivers: encouraging lenders to accept waiver offers when eligible
▪ Delivery requirements: changes are not required at this time in Loan Delivery
▪ Completion reports (Form 1004D): allowing alternatives when a Form 1004D cannot be obtained
▪ HomeStyle® Renovation and HomeStyle Energy requirements: requiring traditional appraisals for these transactions
Effective: These temporary flexibilities are effective immediately for all loans in process and remain in place for loans with application dates on or before May 17, 2020.
