Appraisal Requirements – Homebridge Wholesale

Ensuring that the appraiser uses sound reasoning and provides evidence to support the methodology used for determining the value;
Compliance with the ECOA Valuations Rule, which requires notifications to Borrowers (1) of their right to receive copies of appraisals within three (3) days of application, and (2) that copies of appraisals and other written valuations be delivered to them on the earlier of (a) promptly upon completion, or (b) three (3) business days before closing;
Ensuring that the appraiser provides an accurate opinion, an adequately supported value, and an accurate description of the property;
Ensuring that the appraiser provides their license or certification on the appraisal report;
Complying with the Appraiser Independence Requirements published by Fannie Mae/Freddie Mac and the requirements of the TILA and Regulation Z with respect to valuation independence;
Disclosing to the appraiser any information about the subject property of which it is aware that could impact the marketability of the property;
Ensuring the appraiser does not use unsupported assumptions or use race, color, religion, sex, handicap, familial status, or national origin for any party in the transaction, or impermissible demographics of the community in which the property is located, as the basis for market value.

Appraisers are required to use appraisal report forms that are acceptable to Fannie Mae and/or Freddie Mac. The following appraisal report form(s) should be used:
Uniform Residential Appraisal Form (FNMA Form 1004);
Small Residential Income Property Appraisal Report (FNMA Form 1025);
Individual Condominium Unit Appraisal Report (FNMA Form 1073);
Single Family Comparable Rent Schedule for all one (1)-unit investment properties (FNMA Form 1007);
Operating Income Statement for 2–4-unit investment properties (FNMA Form 216); and
Exterior-Only Inspection Residential Appraisal Report (2055).

Real estate appraisers are to be state certified, or state licensed in accordance with the provisions of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. They must have the requisite knowledge required to perform a professional-quality appraisal for the specific geographic location and property type, as well as have access to the necessary and appropriate data sources for the appropriate area of the appraisal assignment. The correspondent lender must have a process in place to ensure the appraisers it selects have the appropriate knowledge, experience, access to the appropriate data sources, geographic competence, and the ability to generate a quality appraisal report. The correspondent may choose to use an appraisal-management company; however, the originator must establish appropriate procedures and qualifications and continue to meet all requirements noted in these guidelines.