VA Unofficially Says NOPE to ANSI
Appraisers, an appraiser I know sent an email to the VA asking if VA was going to require appraisers to adhere to the ANSI Z765-2021 Measuring Standard as of April 1, 2022.
The appraiser received an ‘unofficial’ response back from a person within the VA connected to processing appraisals, which said:
“The short answer is, no.”
I say this is ‘unofficial’ because to-date, I have seen nothing “official” from VA about this topic. Only officials from within VA know whether or not they will issue any directives about this.
So it would appear to me that appraisers completing reports for VA should continue using whatever measuring protocol that is currently used per the VA appraisal guidebook.
Last week, I was having lunch with a peer. The appraiser asked “If I do the inspection on March 28 and that is the Effective Date, but sign and turn in the report on April 5, do I have to measure to the ANSI Standard?”
I said ‘hmmm’… “I’ll have to check the exact wording in the FAQ from Fannie Mae.” Which I have done.
It says (my bold and underlines):
“Appraisers will be REQUIRED to use the Square Footage Method for Calculating: ANSI Z765-2021 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 on loans sold to Fannie Mae.”
For appraisals, Effective Date is the actual date of value, not the report signature date.
Therefore, for the above example, the measuring would not have to be done per ANSI.
Now there is something else you need to know: NOWHERE in ANSI is the term “GLA” used. That term is only used on the GSE designed mortgage lending, and General Purpose non-lending forms.
ANSI uses the terms ‘Finished Area’ or ‘Finished Square Footage, and ‘Unfinished Area.’
During the Seattle ANSI Roadshow class, the Fannie Mae representative was questioned about this. For the purposes of the form, the ANSI ‘Finished Area Above Grade’ square footage figure goes into the above grade GLA field on the form, and any ANSI BELOW GRADE square footage goes into the Basement & Finished Rooms Below Grade field.
The above CURRENTLY only applies to reports for loans eventually submitted for purchase to Fannie Mae, with report Effective Dates of April 1, 2022 or later.
One more tidbit: the above ONLY APPLIES TO APPRAISERS. When the moonlighting pizza delivery drivers or laid off PhD professors are the ones providing Property Data Reports and Floor Plans for Desktop or Hybrid reports, those Floor Plans don’t have to be measured to ANSI Z765-2021. Same applies to the Floor Plans produced by licensed architects, who are not bound by ANSI either. Architect Floor Plans, as builder blueprints, are often used by County/Parish Assessors to determine home sizes for taxation purposes.
The other agencies, Freddie Mac, HUD/FHA, USDA, ONAP, VA have NOT (yet) adopted this ANSI measuring protocol.