Property Data Reports for Appraisal Waivers
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Appraisers, on Tuesday 5/24/22, an AMC sent a message to their appraiser panel appraisers asking them if they’d like to ‘help their lender clients’ by doing Property Data Reports (PDR).
Let’s decipher what this is all about.
Freddie Mac has decided, that as of Sunday, July 17, 2022, they must have a PDR (Property Data Report) completed “by someone” in order for the loan applicant to qualify for an appraisal waiver in conjunction with a mortgage loan. In other words, actual qualified eyeballs must observe and report property aspects. Appraisers are included as qualified eyeballs.
Here’s the link to the Freddie Mac announcement.
To save you the trouble of reading the details, the key items are these:
- The Property Data Report (PDR) is a special ‘form’ developed by Freddie Mac which is primarily composed of “checkbox” entries organized into related sections of property characteristics, with a few free-form comment sections
- The process to provide the PDR includes having the ‘observer’ prepare and include a FLOOR PLAN diagram of the dwelling, not requiring the ANSI measuring protocol. That must include exterior wall dimensions, interior wall placements, doors, and room labels. This is a ‘higher level’ diagram than just a dketch – which is what is included with a traditional 1004, etc., report.
- Specified photos of the property, etc., must be included, taken by the ‘observer’, but one item is new: those photos MUST have a date stamp on them generated by the camera
- There is NO value stated on the PDR because this is NOT an appraisal
As you can see, these Property Data Reports have a higher level or different reporting requirements than ordinary traditional appraisals.
The other item I’m not sure about, yet, is whether this new Property Data Report ‘form’ will be included in our report software from the multiple vendors. I just checked my software and the PDR is not in the forms package now. So that means you may have to ‘hard copy print’ a PDR form, take it into the field, and use a pen to input the checks and written info. Back at the office you’d have to scan it to a PDF, include photo page(s) and the FLOOR PLAN, and submit that report bundle back to the client. This is going to be a bit cumbersome to start.
AMC’s who will be requesting appraisers to do these Property Data Reports are also seeking “what your fee will be.” This becomes a bit tricky, because all homes are different in their designs. A rectangle will take much less time to measure and do a FLOOR PLAN diagram than a multi-story tract or custom home. So the appraiser MUST do advance research on the home before quoting a fee, at least initially.
Even though this product is NOT an appraisal, it is to be used in conjunction with a mortgage loan. Therefore, the lender must reveal to the borrower what anticipated costs will be. Once those costs are stated, it is very difficult for the lender to backtrack and re-state the Property Data Report fee to the borrower if the appraiser does not quote the fee properly up front. So be real careful with this!
Some appraisers have already indicated that they WON’T do the new Desktop and Hybrid report assignments. From what I’ve seen, that is primarily due to the reluctance of accepting other ‘observers’ data.
But these new Property Data reports DO include the appraiser – if the appraiser chooses to do these. It’s a way to stay employed, especially during the current slow assignment period we’re experiencing.