B4-1.3-01, Review of the Appraisal Report (09/04/2024)

Fannie Mae’s appraisal report forms and the appraisal review requirements for one- to four-unit properties have been developed with the intent that the USPAP standards are followed and that Fannie Mae’s policies are supportive of fair lending practices. This topic provides lender requirements related to the transaction details and the property and appraisal eligibility analysis.

When an appraisal is obtained, the lender must analyze the

• current contract for sale for purchase money transactions,

• current offering or listing for sale for both purchase and refinance transactions when the home was listed for sale,

• comparable sales for both purchase and refinance transactions, and

• current ownership for the subject property (see B4-1.1-02, Lender ResponsibilitiesB4-1.1-02, Lender Responsibilities, for further information).

The lender is responsible for validating that

• the property meets Fannie Mae’s eligibility criteria (see B2-3-01, General Property EligibilityB2-3-01, General Property Eligibility, for eligibility requirements); 

• the appraiser has provided an accurate and reliable opinion of value that reflects the market value, condition, and marketability of the subject property in compliance with Fannie Mae’s Selling Guide requirements. (See B4-1.3-12, Appraisal Quality MattersB4-1.3-12, Appraisal Quality Matters, for further information); and

• the appraisal conforms with B4-1.1-04, Unacceptable Appraisal PracticesB4-1.1-04, Unacceptable Appraisal Practices.