The Appraisal Institute recently reported that the FHFA has paused the GSEs’ programs addressing appraisal innovation and modernization in order to focus on taking both Fannie and Freddie out of conservatorship. This delay is also intended to give the FHFA more time to gather additional information on the valuation profession and the GSEs’ modernization efforts.
According to the Appraisal Institute’s article, testing of “hybrid” or bifurcated appraisals is expected to continue while the FHFA gathers more industry and stakeholder feedback. The article also mentioned that pre-existing and narrowly focused appraisal waiver programs will continue, but that some elements of the appraisal modernization plan that involved data will now only involve a desktop appraisal or a full interior inspection appraisal. Joint development of the UAD and UCDP will be unaffected by the pause.
To recap, Fannie Mae announced last March that it had begun testing new processes and technologies in the collateral risk management space in collaboration with Freddie Mac. The announcement also included some basic information regarding this joint modernization initiative, property data collection, desktop appraisals (and form 1004P), as well as scope of work and USPAP.
Appraisal Institute – appraisalinstitute.org