Fannie Mae has published a summary of their 2017 communications in a job aid summary – In Case You Missed It. The job aid lists and summarizes each selling guide announcement, lender letter and DU/DO (Desktop Underwriter/Desktop Originator) release note that were issued during 2017. Fannie Mae published 68 announcements, lender letters and DU/DO release notes in 2017.
Selling Guide Announcements are published to announce policy changes and are annotated by SEL, while Lender Letters (LL) are generally published to reinforce existing policy or provide related information. Lastly, DU/DO Release Notes are published to provide updates and changes related to DU/DO.
Here are appraisal-related highlights for 2017:
- Clarified that an appraiser may use dollar-for-dollar adjustments for financing or sales concessions when such an adjustment approximates the local market’s response to these types of concessions.
- Changed requirement regarding comparable sales for new projects or subdivisions. In lieu of requiring at least one sale from the subject subdivision or project, will now accept two pending sales in the subject neighborhood or project in the event closed sales are not yet available. When this flexibility is used, the appraiser must also provide at least three closed comparable sales from outside the subject subdivision or project.
- Clarified policy that allows an unlicensed or uncertified appraiser or appraiser trainee to complete the property inspection and the supervisory appraiser is not required to inspect the subject property.
- Announced expanded eligibility for Day 1 Certainty™ for loans with Collateral Underwriter® risk scores of 2.5 or below on the appraisal regardless of whether the loan was underwritten thru DU.
- Section B4-1.4-10, Property Inspection waivers. Texas Section 50(a)(6) mortgages were added to the list of transactions that are not eligible for a property inspection waiver (PIW).
- Updated policy to allow lenders to have the option to submit the Appraisal Update and/or Completion Report to the UCDP for conventional mortgage loans delivered to Fannie Mae.
- Section B4-1.3-01, Review of the Appraisal Report. The overview was updated to clarify the purpose of Fannie Mae’s appraisal report policies. The overview now states that ‘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.
The summary also provides a link to each announcement, lender letter and DU/DO release note. You can access this useful job aid by clicking on this link:
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers, and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.