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Fannie Mae Lender Letter LL-2020-04

Fannie Mae Lender Letter LL-2020-04

Fannie Mae issued a lender letter (LL-2020-04) to all Fannie Mae single-family sellers regarding the impact of COVID-19 on appraisals under the guidance of the FHFA. Read the full letter here
Fannie Mae stated that in response to the COVID-19 national emergency, they are allowing temporary flexibilities to their appraisal requirements. Effective immediately, there are temporary appraisal requirement flexibilities, desktop appraisal allowances, exterior-only inspections, and revisions to the scope of work.

Fannie Mae will accept an alternative to the traditional appraisal required under Selling Guide Chapter B4-1, Appraisal Requirements, when an interior inspection is not feasible because of COVID-19 concerns. They will allow either a desktop appraisal or an exterior-only inspection appraisal in lieu of the interior and exterior inspection appraisal (i.e., traditional appraisal). If a traditional appraisal is not obtained and there is insufficient information about the property for an appraiser to be able to complete an appraisal assignment with a desktop or exterior-only inspection appraisal, the loan will not be eligible for delivery to Fannie Mae.

Read the full lender letter for more information and compliance requirements.