MPF Xtra Appraisal Risk Management Policy Reminders and Resources
Effective Date: Immediately (Unless otherwise noted)
On January 6, 2021, Fannie Mae issued Lender Letter LL-2021-01, reminding PFIs of their responsibilities when reviewing appraisals to manage appraisal risk and the available resources.
The Lender Letter covers the following information:
- Originators responsibilities for appraisal reviews.
- Top appraisal findings and defects.
- Originator responsibilities for compliance with Appraiser Independence Requirements.
- Best practices for Originators during the appraisal underwriting processes.
- Suggests best practices for QC processes related to appraisals.
- Highlighting resources to help Originators manage appraisal risk efficiently and effectively.
As a reminder, Originators experiencing difficulties obtaining appraisals due to COVID-19 are required to follow the temporary flexibilities to appraisal requirements published in Fannie Mae LL-2020-04.
To gain a full understanding of these topics, PFIs should review the entire Fannie Mae Announcement and any applicable Fannie Mae Selling Guide chapters, forms, or exhibits noted in the announcements.
- MPF Announcement 2021-03