Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Desktop Appraisals to Become a Permanent Option

The Federal Housing Finance Agency (FHFA) will accept appraisals conducted remotely—without the physical presence of an appraiser—starting in early 2022 for qualifying Fannie Mae– or Freddie Mac–backed mortgages. The government-sponsored enterprises will use public records, including listings and tax appraisals, to process desktop appraisals for purchase loans.

The change will allow banks and mortgage lenders to use desktop appraisals in place of traditional ones. Desktop appraisals had first been announced as a temporary option at the start of the pandemic.

“What was one of the temporary flexibilities will now become an established option for originating enterprise loans,” says Sandra Thompson, acting director of the FHFA.

The appraisal industry has faced high demand and a shortage of appraisers during the hot housing market. Desktop appraisals have been one method the industry has turned to in keeping transactions on track.

Source: “FHFA Will Make Desktop Home Appraisals a Permanent Option,” American Banker (Oct. 18, 2021) [Log-in required.] and FHFA.gov

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