Appraisal Information

Mortgage Appraisal
Property Value must meet FNMA appraisal standards and conform to the Uniform Standards of Professional Appraisal Practice (USPAP). Broker / Lender is responsible for reviewing the property value report to ensure the property has a general market acceptance with a strong probability of value retention. Property value, condition, and marketability must be evidenced by a real estate appraisal completed by a state-licensed appraiser in accordance with the following guidelines.

Lender must ensure appraisers are licensed for the state in which the property is located and have current errors and omissions insurance.

Lender may require a review appraisal to support the original Fannie Mae Form 1004 that is submitted with the loan file. If lender requires a review appraisal by a firm approved by lender.

1. Ordering the Appraisal

The lender must be ordered in the name of the lender or its assignee. The applicant may not order, but can use an appraiser they recommend if approved by the lender.

2. Required Documentation

All appraisals must be ordered in the name of the lender or its assignee. Must be completed on the most current version of the following forms, including appropriate schedules, addenda and documentation (indicated below):

The following documentation is required to support each report.

• Statement of Limiting Conditions and Appraisal Certification
• Each form must have an original signature
• Any addition or deletions made to this certification must be referenced in the reconciliation section of the appraisal report.

3. Location Map

A map is showing the location of the subject and sales comparables. A plat map of the subject should also be included.

4. Legal Description

The legal description of the subject property in addition to the description required by the USPAP. An addendum may be used if necessary.

5. Sale History

A report and analysis of any prior sale or transfer of the subject property within one year precede the date of the home value report.

6. Floor Plans

• A sketch shows the location of all rooms and exterior doors.
• Exterior building dimensions
• Location of interior doors is required if a condition of functional obsolescence is noted.
• Dwellings with unusual layouts, peculiar floor plans or inadequate equipment or amenities generally have limited market appeal and should be considered for maximum financing.
• If such inadequacies result, an adjustment should be made to reflect this in the overall analysis. On the other hand if there are no inadequacies, no adjustment is required.
• For units in condominium projects, interior perimeter unit dimensions are required.

7. Photographs

• One set of clear, descriptive 35mm photographs must be supplied of the following.
• Front, rear, and street scenes of the subject property.
• If on-site amenities are valued extraordinarily, photographs of pool view, tennis court, etc.
• Front of the three closed comparables sales photographs (property addresses must be indicated).

If present on an appraisal, the following items required special attention by the reviewer:

• Below average ratings.
• Leasehold - obtain leasehold agreement and include ground rent in ratio
• Declining property values
• Over predominant value
• Change in land use to vacant or commercial
• Legal non-conforming needs rebuild letter
• Highest and best use - other
• Private road must obtain recorded easement and maintenance agreement
• Flood zone requires flood insurance
• Manufactured house - CMF guidelines
• Dampness, settlement, infestation
• Below grade rooms must not be included in GLA
• Space heater / no heat
• External or functional depreciation
• Comparables which exceed acceptable proximity to subject