In a memo released late last month (PDF download), Fannie Mae made some important announcements about appraisal rules and HVCC. Among other things, the guidance:
- prohibits appraisers who lack geographic competency from accepting assignments outside their area.
- makes clear that nothing in the HVCC requires lenders to use third-party appraisal management companies (AMCs) or prohibits practitioners from having appropriate communications with appraisers.
- outlines a process for lenders wanting to address what they perceive to be deficient appraisals: the lender has the option to request a field or desk review of the report or forgo the review and obtain a new appraisal.
- permits appraisers to use a short sale or foreclosure as a comparable but must identify and consider differences from the subject property and cannot assume the properties are equal.
Source: NAR’s Association Executive Internal News Service