Valuation Management Group strives to keep its clients and appraisers informed about best practices in the real estate appraisal arena.
On January 31st, 2017, Fannie Mae announced some changes effective immediately. The appraisal changes that were announced involve comparable sales in new projects or subdivisions. Prior requirements stated the appraisal must include at least one closed comparable sale from the subject subdivision or project and one closed comparable sale from outside the subject subdivision or project.
The recent announcement recognizes that in new subdivisions or projects the requirement may be difficult due to lack of sales. The new requirement allows 2 pending sales in lieu of one closed sale in the subject subdivision or project in the event no closed sales are available. Should this flexibility be utilized, the appraiser must provide at least 3 closed comparable sales outside the subject subdivision.
Fannie Mae also clarified their existing policy on property inspections by appraiser trainees. Fannie Mae does allow an unlicensed, uncertified or trainee appraiser to complete the property inspection. When an unlicensed or trainee appraiser inspects the property the supervisory appraiser is not required to also inspect the property.
They also gave clarification on adjustments for appraisal sales concessions. The guidance states, “Appraisers 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”.
To review the entire announcement visit the following webpage: https://www.fanniemae.com/singlefamily
Appraisers can sign up for the webinar VMG is co-hosting with Fannie Mae about “Collateral Policy & Technology Guidance for Appraisers” on February 22, 2017, 11 AM EST. Attendance is limited so sign up today by CLICKING HERE!!
Valuation Management Group is a national, residential and commercial appraisal management services company that manages the appraisal process, including the appraisal review, for financial institutions, banks, mortgage bankers, and credit unions. VMG offers a full array of commercial and residential appraisal products and services. The company’s goal is to take the appraisal process from ordinary to extraordinary for its clients and appraisers.