Tagged: Fannie Mae

Let's Call Them Desktops with Third Party Inspectors 18

No to Desktops with Third Party Inspectors

Hybrid Appraisals were tested and failed. So what does Fannie Mae do? Let’s call them Desktops with third party inspectors. Fannie Mae has announced they will soon start accepting Desktop Appraisals. The appraiser does not inspect the property; however an interior floor plan including walls is required. This in itself is over and above what most appraisers typically provide. We understand Fannie Mae’s decision is based on risk; however, risk is not part of an Appraiser’s analysis under USPAP. Will State Appraisal Boards look the other way for USPAP compliance? How will an Appraiser who does not inspect the property...

AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations / Appraisers News

Desktop Appraisals: Has The Devil Infiltrated The Public Trust? 56

Desktop Appraisals: Has The Devil Infiltrated The Public Trust?

Are desktop appraisals with third-party inspectors protecting the public, or are these products about to destroy the very profession I love so much. The Uniform Standards Professional of Appraisal Practice (USPAP) are the key to maintaining public trust in real estate transactions. USPAP is pretty much the equivalent to the Bible, but it MUST be followed for appraisers. Created by the Appraisal Foundation, USPAP set forth the guidelines for how appraisers should perform their work. By following these standards, appraisers ensure that they act in a professional and unbiased manner. To expand, even more, USPAP states, “While USPAP does not...

AGA / AMC / Appraisal / Appraisal Management Companies / Appraisal News / Appraisal Organizations

Changes from Fannie Mae: ANSI, Desktop Appraisals & Virtual Inspections 30

Changes from Fannie Mae

Fannie Mae has decided to make at least 2 significant changes… The New Year is here and along with that comes change. The appraisal industry and the appraisal profession is no exception to this. Change is something we should embrace provided that the change is for the betterment of those effected by the change. Before we make a change we need to identify what we are trying to accomplish and will the purposed changes achieve the desired results and is this the best way to accomplish our objective. I am not sure that we have identified the problem that we...

AMC / American National Standards Institute / ANSI / Appraisal / Appraisal Management Companies / Appraisal News

Condominium Appraisal Protocol Changed - Appraisers Blogs 13

Condo Appraisal Protocol Changed

Fannie Mae’s sweeping new national condominium regulations… Appraisers, Fannie Mae has changed inspection and reporting requirements for Condominiums, effective January 1, 2022. The article titled “How can appraisers evaluate aging condos without docs?” from Loop North News has info: From the article: 24-Jan-22 – Fannie Mae’s sweeping new national condominium and co-op apartment lending regulations were created to protect residents, but the tough rules do not cover all the problems, appraisal experts say. High-rises with “aging infrastructure and significant deferred maintenance is a growing concern across the nation,” noted the Fannie Mae memorandum, issued as a result of the tragic...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

ANSI Measuring Standard Required by FNMA 807

ANSI Measuring Standard Required in 2022

On December 15, 2021, Fannie Mae announced that it will be adopting ANSI Measuring Standard in 2022. Appraisers will be required to use the Square Footage-Method for Calculating: ANSI® Z765-2021 (American National Standards Institute®) Measuring Standard for measuring, calculating, and reporting gross living area (GLA) and non-GLA areas of subject properties for appraisals requiring interior and exterior inspections with effective dates of April 1, 2022 or later for loans sold to Fannie Mae. For more information, watch this video and check out this fact sheet.   Here are some items for appraisers to consider when using the ANSI standard Measurements...

American National Standards Institute / ANSI / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Is a Floor Plan in Your Future? 36

Are Floor Plans in Your Future?

A floor plan is supposed to be included in Desktop & Hybrid reports. How will that be done? Appraisers, I’ve recently been studying a ‘word change’ in various GSE documents. This change happened initially in March 2020 in the COVID era revised ‘flexibility’ Assumption and Limiting Conditions and Scope of Work attached to residential reports, and was further incorporated into TWO new appraisal forms issued in July 2020, which you might not even realize they exist! The word change was subtle, but has major implications for appraisers. The change is ‘sketch’ to “Floor Plan.” But when I inquired about this...

Appraisal / Appraisal News / Appraisal Software / Appraisers News / Fannie Mae - Freddie Mac / Trending

Racial Bias in Appraisals Survey - Appraisers Blogs 7

Racial Bias in Appraisals Survey

Fannie Mae wants to hear from you about racial bias in appraisals. The survey closes on October 3, 2021. News media reports alleging racial bias in home appraisals have turned a spotlight on the appraisal process in the mortgage industry. We at Fannie Mae take allegations of appraisal bias seriously, and as one of the largest consumers of residential appraisals in the United States, we want to make sure we are doing all we can to identify and help prevent it. Many of the conversations on this topic have excluded appraisers. To help us address appraisal bias from all perspectives,...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac

Objective Terminology - Avoiding problematic phrases - Appraisers Blogs 6

Objective Terminology

  Appraisers should avoid using words that lend themselves to bias judgments. Instead, the appraisal report should document objective facts. “Bias” in appraisals has been a ‘hot topic’ around nationwide water coolers since about 2018, and even earlier. The GSE’s are particularly wary of any commentary in appraisal reports that appear to inject ‘bias’ into the value conclusion. In the June ’21 FNMA Appraiser Update newsletter, there is this article: Avoiding problematic phrases Stories in the media about racial bias in appraisals have been on the rise. The Uniform Standards of Professional Appraisal Practice (USPAP) expects appraisers to “not perform...

Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Uniform Standards of Professional Appraisal Practice / USPAP

The Other Side, Racism in Appraisals 26

The Other Side, Racism in Appraisals

…the other side of things, the appraiser profession side since no other news media and organizations are willing to do so… Note: The following blog article is not to defend anyone or to place blame. It is simply a blog looking at this issue from the other side of things, the side that hasn’t been discussed in the media. A couple weeks ago, I was privileged to speak on The National Real Estate Post about appraisal issues. One of the issues we discussed briefly was the ever-growing number of articles being written about allegations of racial discrimination in the appraisal...

Appraisal / Appraisal News / Appraisal Organizations / Appraisers News / Automated Valuation Models / AVM

FHA Temporary Partial Waiver - Actual Reasoning & Directive 2

FHA Temporary Partial Waiver

FHA Appraisers, on April 26, 2021, FHA issued this Temporary Partial Waiver, which is active for one year. This temporary partial waiver is effective for the 12-month period between April 26, 2021, and April 26, 2022. It is found in FHA INFO #21-25 April 27, 2021: Temporary Partial Waiver of the requirements of the single Family Housing Policy Handbook 4000.1 Section II.D.4.c.iii.(F)(2) Required Analysis and Reporting that the Appraiser must include, analyze and report a minimum of two active listings or pending sales on the appraisal grid (in addition to at least three recently settled sales) in an Increasing Market...

1004MC / Appraisal / Appraisal News / Appraisers News / Fannie Mae - Freddie Mac / Federal Housing Administration

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