Selling Guide

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals (03/31/2020)

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
Links to COVID-19 published documents:   

Related Articles

What are the requirements to use business assets?

Business Assets Business assets may be an acceptable source of funds for the down payment, closing costs, and financial reserves when a borrower...

Read more

What are the requirements when employment is scheduled to begin after the loan closes?

Employment Offers or ContractsIf the borrower is scheduled to begin employment under the terms of an employment offer or contract, the lender may deliver...

Read more

Are collection accounts and non-mortgage charge-offs required to be paid off?

Manually Underwritten LoansFor manually underwritten loans, collection accounts and charge-offs on non-mortgage accounts do not have to be paid off ...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.

Email Us
If you still have Technical Support questions, feel free to