Updated on Mar. 31, 2020
Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals addresses a number of questions and concerns that industry partners have raised to us. During this COVID-19 national emergency, in many cases lenders are unable to obtain an appraisal based on a full interior and exterior inspection of the subject property. In response, we are allowing temporary flexibilities to our appraisal requirements. We are working closely with Freddie Mac under the guidance of FHFA to offer these temporary measures.
Summary of Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals
Additions to Lender Letter on Mar. 31, 2020
- Flexibilities for new construction loans: adding additional options for documentation including the use of two new certification templates
- Flexibilities for HomeStyle® Renovation loans: providing options for inspection requirements for draws
Lender Letter content provided Mar. 23, 2020
- Temporary appraisal requirement flexibilities: allowing exterior-only inspection appraisals or desktop appraisals UPDATED Mar. 31, 2020 to remove order of preference for permissible appraisals.
- Desktop appraisals: allowing for purchase transactions when an interior and exterior appraisal is not available
- Exterior-only inspection appraisals: allowing for purchase and refinances of Fannie Mae-owned loans
- Revisions to the scope of work, statements of assumptions and limited conditions, and appraiser’s certifications: requiring modified language to be used with exterior-only and desktop appraisals
- Additional form instructions for appraisals: requiring identification of “exterior” or “desktop” on the interior and exterior reports
- Identification of a Fannie Mae loan: reminding lenders about our Loan Lookup tool to identify Fannie Mae-owned loans NEW Mar. 31, 2020 to include Desktop Underwriter information
- Appraisal waivers: encouraging lenders to accept waiver offers when eligible
- Delivery requirements: changes are not required at this time in Loan Delivery
- Completion reports (Form 1004D): allowing alternatives when a Form 1004D cannot be obtained UPDATED Mar. 31, 2020 to exclude HomeStyle Renovation loans