Chapter 3: Special Appraisal Considerations

Some types of properties require special consideration in the property and appraisal review processes to recognize the special contributions of unusual features, the detrimental effect of certain environmental conditions, or the need to meet specific criteria in order for a mortgage secured by the property to be eligible for delivery to Fannie Mae.

Units in condominium, PUD, or cooperative projects also require special consideration because of the interrelationship between the property being appraised and other units within the development or project.  We will purchase or securitize unit mortgages in condominium, PUD, or cooperative projects that meet our project eligibility criteria.  To determine project eligibility, a lender often needs access to certain project information that is not always readily available -- such as information about the project's insurance coverage, legal documents, or budget; the payment status of owners' association (or cooperative corporation) fees; and the ownership and occupancy status of individual units within the project.  For this reason, we allow the lender to rely on the appraiser, the owners' association (or cooperative corporation), the management company, the real estate broker, and the project developer as sources for information, although we expect the lender to make a diligent effort to ensure the accuracy of the information obtained from these sources.  Project acceptance -- and the availability of financing -- often depends on the willingness of the owners' association, cooperative corporation, or management company to obtain and provide requested information.