Below is a list of the main sections in the Fannie Mae Servicing Guide that address appraisal requirements. We have included a brief description under each section that highlights the relevant information you will find in that area. Please note this list does not encompass every section that relate to appraisals in the guide and should only serve as a reference point.

Part II, Chapter 1, 102: Conventional Mortgage Insurance

Disclosure of fees borrower may pay including appraisal and broker price opinion (BPO) fees

Part II, Chapter 1, 102.04: Termination for Loan Modifications

Determining value of property in loan modifications using BPO, automated valuation model (AVM), or a new appraisal

Part II, Chapter 1, 102.05: Borrower-Initiated Cancellation Based on Original Property Value

Borrower may request cancellation of mortgage insurance assuming LTV ratio criterion is met (as evidenced by servicer’s warranty, BPO, certification of value, or new appraisal)

Part II, Chapter 1, 102.06: Borrower-Initiated Cancellation Based on Current Property Value

Borrower may request cancellation of mortgage insurance assuming LTV ratio criterion is met (as evidenced by a new appraisal)

Part II, Chapter 1, Exhibit 2: Borrower-Initiated Cancellation Based on Original Property Value

Different criteria for properties before and after July 29, 1999

Part II, Chapter 1, Exhibit 3: Borrower-Initiated Cancellation Based on Current Property Value

Different criteria for properties before and after July 29, 1999

Part III, Chapter 7, 704: Partial Release of Real Property

BPO may be used; appraisal required in certain circumstances

Part VII, Chapter 6, 610.05: Determining the Estimated Sales Price of Property

For HAFA short sale or deed-in-lieu BPO is permitted except where states require an appraisal

Advertisement