The pandemic that we face today will impact every aspect of our lives for the foreseeable future. The Federal Housing Finance Agency (FHFA) has directed new Fannie Mae and Freddie Mac Policies for appraisers to follow regarding Covid-19 (coronavirus). In light of the economic and social impact, these policies have been put in place temporarily to ease the strain of the Housing and mortgage industry.
Here are several of the Freddie Mac Changes listed:
- Property Valuations: When a Seller cannot obtain an appraisal with an interior inspection as a result of the COVID-19 pandemic, Freddie Mac will accept either an appraisal with an exterior-only inspection or a desktop appraisal in lieu of the interior and exterior inspection appraisal required under Section 5601.5(a).
- Automated Collateral Evaluation: “In order to reduce contact between appraisers, homeowners, and home purchasers, when eligible, Sellers are encouraged to accept appraisal waiver offers provided through Loan Product Advisor®. Sellers are encouraged to submit the Mortgage to Loan Product Advisor prior to ordering an appraisal to determine whether an appraisal waiver is available.
Here are several of the Fannie Mae Changes listed:
- Temporary Appraisal Requirement Flexibilities: “We will allow either a desktop appraisal or an exterior-only inspection appraisal in lieu of the interior and exterior inspection appraisal (i.e., traditional appraisal).”
- Desktop Appraisals: For purchase money transactions when an interior and exterior appraisal is not available, lenders are encouraged to obtain a desktop appraisal rather than an exterior-only appraisal.
- Exterior-only Inspection appraisals: An exterior-only inspection appraisal may be obtained in lieu of an interior and exterior inspection appraisal for the following transactions:
– Purchase money loans
– Limited cash-out refinances where the loan being refinanced is owned by Fannie Mae
In light of these new policies from the GSEs, the Appraisal Buzz team quickly assembled a rapid response team of industry pros to guide appraisers through these challenging times. While we know appraisers are familiar with Drive-bys and Desktop appraisals, we thought it would be a great time to offer everyone an update on best practices as well as address some of the questions that Fannie Mae and Freddie Mac’s new policies might present.
Put on your best PJs and join us for these webinars as follows:
Best Practices for Desktop Appraisals with Ernie Durbin and Bob Murphy
Date: Tuesday March 31st
Time: 2PM EST
Best Practices for Drive-By Appraisals with Josh Walitt and Bob Murphy
Date: Thursday April 2nd
Time: 2PM EST