When obtaining a desktop or exterior only appraisal, does the lender need to document that they attempted to obtain a traditional appraisal and were not successful due to COVID-19?
No. Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals, lists the appraisal types that are suitable for each transaction type while maintaining prudent and responsible lending practices. Lenders delivering mortgages with one of the permitted flexibilities are not required to provide documentation showing that they could not obtain a traditional appraisal due to COVID-19. Lenders are empowered to exercise the flexibilities as described in the lender letter.
For more information, refer to the published Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals.