Fannie Mae Provides Further Temporary Guidance on Appraisals

In the wake of the COVID-19 pandemic, Fannie Mae has announced additional temporary guidance, including use of virtual inspections for appraisals and renovation loans, and flexibilities for condominium project reviews. Additionally, Fannie Mae updated information about flexibilities for new construction loans and Homestyle^® Renovation loans, as well as other temporary appraisal requirement flexibilities. View more details here.

Fannie Mae has also released a video to help appraisers and lenders understand how to use the temporary flexibilities, including the modified scopes of work, how to perform thorough desktop appraisals, and more. Check out “Top 6 Tips for Appraisers on Using COVID-19 Flexibilities” and other resources on Fannie Mae’s Appraisers page.

Fannie Mae and Freddie Mac are also extending the implementation timeline for the redesigned Uniform Residential Loan Application (URLA) and updated automated underwriting systems (AUS) specifications to support the industry during the COVID-19 pandemic. The new mandate for required use of the redesigned URLA is March 1, 2021. The extension will provide lenders and other stakeholders additional time to prepare and implement the redesigned URLA. View more details here.

Due to disruption related to COVID-19, many states are temporarily allowing remote notarization in conjunction with paper-based loan closings. A new job aid from Fannie Mae provides information on use of remote ink-signed notarizations. View the job aid. For more information, contact Curtis Milton at 1-800-368-5242 x8597.