In their first Selling Guide update of 2017, Fannie Mae provided some important appraiser-related changes/clarifications. In particular, the GSE’s recent updates touch upon comparables in new projects or subdivisions, property inspections by appraiser trainees, and adjustments to an appraisal for sales concessions.
In regards to comparables in new projects or subdivisions, Fannie’s announcement stated:
“Currently, we (Fannie Mae) require the appraiser to select at least one closed sale from the subject subdivision or project and one sale from outside the subject subdivision or project when selecting comparables for the appraisal. The third comparable can be from inside or outside the subdivision or project. In new subdivisions or projects, compliance with this requirement may be difficult due to a lack of closed sales.
“With this update, we will now accept two pending sales in lieu of one closed sale in the subject subdivision 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. This change is effective immediately.”
When it comes to property inspections by appraiser trainees, Fannie’s recent Selling Guide updates clarified the GSE’s existing policy that allows these trainees to complete property inspections.
“When the unlicensed/uncertified appraiser or appraiser trainee completes the property inspection, the supervisory appraiser is not required to also inspect the property. This clarification is effective immediately,” said Fannie Mae’s announcement.
Adjustments to an appraisal for sales concessions was the last appraiser-related change/clarification mentioned within the list of updates.
“With this update, we (Fannie Mae) have clarified that 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,” said Fannie’s announcement. “This clarification is effective immediately.”
To view Fannie Mae’s “Selling Guide Announcement SEL-2017-01” in its entirety, click here.