Chapter 4: Reviewing the Appraisal Report

Our appraisal report forms and the property appraisal and underwriting processes we use for one- to four-family properties have been developed with the intent of assuring that the Uniform Standards of Professional Appraisal Practice are followed and that our policies are entirely consistent with, and supportive of, fair lending practices.

This Chapter discusses key factors that are taken into consideration when preparing an appraisal report, and is intended to provide a lender with a usable, working reference tool for reviewing an appraisal that is documented on the various appraisal forms that are used for mortgages delivered to Fannie Mae.  Not all of the topics discussed will appear on each appraisal report form, but the material is presented in the general order in which the topics appear on most forms.

An appraisal that is properly developed and reported on one of our appraisal forms is considered a summary appraisal report that complies with the applicable sections of the Uniform Standards of Professional Appraisal Practice.

•    Appraisals that are documented on the Uniform Residential Appraisal Report (Form 1004), the Small Residential Income Property Appraisal Report (Form 1025), the Individual Condominium Unit Appraisal Report (Form 1073), or the Individual Cooperative Interest Appraisal Report (Form 1075) are considered as complete appraisals (and thus are not subject to the Departure Rule of the Uniform Standards).   

•    Appraisals that are documented on the Desktop Underwriter Quantitative Analysis Appraisal Report (Form 2055), the Desktop Underwriter Qualitative Analysis Appraisal Report (Form 2065), or the Desktop Underwriter Individual Cooperative Interest Appraisal Report (Form 2095) are generally considered as limited appraisals (and are subject to the Departure Rule of the Uniform Standards) because we do not require that the cost and income approaches to value be used in connection with them.  However, appraisals documented on these forms may be considered as complete appraisals if the cost and income approaches to value are not applicable because the omission of these approaches for a particular type of appraisal assignment is not a departure from the Uniform Standards (and the appraiser specifically identifies the appraisal as a complete appraisal in the appraisal report