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The Ever Changing World of Appraisals

Appraisers have it easy. All they have to do is look at some numbers on the computer and take a few photos.

Oh, really?

Mortgage lenders rely on everything the appraiser does. Not only the originating lender but every investor who buys that loan throughout its life.

Fannie Mae has some very strict guidelines which change regularly and the appraisers are required to keep up with them just as the lender is. A few real estate agents keep up with Fannie Mae issues and all those who read my blog(s) do for sure. In fact it probably is not a bad idea to ask your agent if they read my blogs or attend any of my training – that way you’ll know they keep up with cutting edge information that can make or break your deal. (Self-serving? No, but a good point!)

Fannie Mae now requires comparable data not only on your subject property (the home you are buying) and the immediate comparables but the complete pool of available inventory. Fortunately they do not mean each individual sold home or home for sale but even just requiring this aggregated information can make a huge difference.

From the Fannie Mae Letter Announcement 08-30
(The 30th Announcement in 2008)

Full details are available here.