Policy updates and clarifications made by the Federal National Mortgage Association will make appraisal reports easier to complete.
Appraisers are currently required by Fannie Mae to use at least one comparable sale from the same subdivision as the subject property.
The Washington-based firm also requires a second comparable sale from another subdivision, while the third can be inside or outside.
But it might be difficult to come up with an inside comparable sale in new subdivisions or projects because of a lack of closed sales.
So Fannie will
now accept two pending sales in lieu of one closed sale in the subject subdivision if no closed sales are available. In this case the appraiser will need to provide at least three closed comparable sales from outside.
The update, as well as other changes, was discussed in
Selling Guide Announcement SEL-2017-01.
The secondary lender clarified that when an unlicensed, uncertified or trainee appraiser completes a property inspection, the supervisory appraiser is not required to also inspect the property.
Fannie additionally said that appraisers can begin using dollar-for-dollar adjustments for financing or sales concessions as long as the
adjustment approximates the local market’s response to such concessions.
Fannie said the updates are immediately effective.
