Fannie Mae Releases New Selling Guide
In April of 2013, Fannie Mae released its updated Selling Guide. Updates related to real estate appraisal are highlighted below:
Appraiser Independence Requirements
Lenders must ensure that appraisals conducted in connection with single-family mortgage loans, other than government-insured and -guaranteed loans, conform to the Appraiser Independence Requirements.
While Fannie Mae allows lenders to use third-party vendors, such as appraisal management companies (AMC), for appraisal services, neither the Appraiser Independence Requirements nor Fannie Mae requires their use. If lenders choose to rely on an AMC to review an appraiser’s qualifications or select the individual to perform appraisals, lenders should establish appropriate procedures and qualifications, including compliance with the previously noted requirements, to ensure that qualified individuals are selected.
Use of Third-Party Vendors: The lender delivering the loan to Fannie Mae is ultimately responsible for complying with Fannie Mae’s requirements related to the value, condition, and marketability of the subject property. If a lender uses the services of an AMC, the lender must hold the AMC responsible for complying with Fannie Mae’s requirements, including those of the Appraiser Independence Requirements, as if the lender had selected the appraiser. Imposing this requirement on the AMC does not relieve the lender of its warranties related to the appraisal or the value, condition, and marketability of the property.