In response to COVID-19, Fannie Mae and Freddie Mac have provided temporary guidance to appraisers on several policy areas, as well as new FAQs providing additional information on the temporary policies, according to a recent release from Fannie.
One updated question dealt with whether an appraisal report has to include subject property and comparable sales photographs when the report is an exterior-only assignment.
“The appraiser must provide an original photograph of the front of the subject property,” Fannie Mae said. “For all other photographs, the appraiser may provide photographs from credible secondary data source(s). Although not required, the presence of a comparable photos page, with images, may be necessary to allow the appraisal report to pass automated system requirements.”
A new question asked whether one can use an appraisal waiver if they obtained an exterior-only or desktop appraisal.
“No,” Fannie answered. “Fannie Mae policy for appraisal waivers prohibits the execution of an appraisal waiver for a loan transaction for which the lender has obtained an appraisal. This includes exterior-only or desktop appraisals using the COVID-19 appraisal flexibilities. We encourage lenders to review the DU underwriting findings report to determine appraisal waiver eligibility prior to ordering an appraisal.”
Another new question asked whether the copy of the executed UCC-1 financing statement provided to the document custodian for a cooperative share loan needed to have an original filing stamp.
“In states where a UCC-1 is used to record security interest in a co-op’s stock(s) or share(s), Fannie Mae policy requires that lenders provide document custodians the original executed or a copy of the UCC-1 financing statement that bears the file stamp of the relevant filing office(s) to be certified by the document custodian,” Fannie said. “Unrecorded originals or copies of UCC-1 financing statements that do not bear the file stamp of the relevant office(s) may not be certified by document custodians. We have not provided COVID-19 related flexibilities for co-op share loan documentation. Refer to co-op share loan documentation requirements on our website for additional information.”