Announcement 20-0024: Simplified Agency Appraisal Requirements

April 10, 2020

Overview

Here is a simplified guide to help evaluate the permissible Agency appraisal and form requirements during the COVID-19 crisis.  Effective April 13, 2020, and until further notice, all loans delivered to Carrington Mortgage Services, LLC (CMS) for purchase must follow these new procedures.
Permissible Appraisal Requirements

Loan Type Other Criteria Exterior-Only Allowed Desktop Allowed
CONV Purchase, Primary Residence Yes Yes
Purchase, 2nd Home / Investment
LTV <= 85%
Yes Yes
Purchase, 2nd Home
LTV > 85%
No No
No Cash-out Refinance
Fannie/Freddie Owned
Yes6 No
No Cash-out Refinance
NOT Fannie/Freddie Owned
No No
Cash-out Refinance No No
New Construction4,5 No Yes
FHA3 Purchase Yes Yes
Rate/Term and Simple Refinances Yes No
Cash-out Refinance No No
VA Purchase Yes1 Yes2
Cash-out Refi Yes1 Yes2
All Gov’t New Construction No No
  1. Appraisers must boldly and inconspicuously state “Per Department of Veterans Affairs, no interior inspection was provided due to COVID-19.”
  2. Use of Assisted Appraisal Processing Program (AAPP) is not authorized for Desktop appraisals. Value must not exceed the 2020 Freddie Mac Conforming Loan Limit for a one-unit limit for the subject’s county.
  3. FHA 1004D Part B Completion Report:  FHA will permit a letter signed by the borrower affirming that the work was completed with further evidence of completion, which may include photographs of the completed work, paid invoices indicating completion, occupancy permits, or other substantially similar documentation.
  4. Builder Certification:  The Lender must obtain a builder signed certification, Attachment A, Builder/Contractor Certification, attesting that the information provided is true and correct. This certification must be included in the Mortgage file.
  5. Completion Reports for New Construction Properties:  For new construction properties where the appraisal report was completed “subject to completion per plans and specifications,” if the Lender is unable to obtain a completed Appraisal Update and/or Completion Report (Form 1004D) as a result of COVID-19 related issues, FNMA will accept the Completion of Construction Certification.
  6. The subject must be refinanced with the same agency that owns the current mortgage

Appraisal Valuations Form Requirements

Loan Type Exterior Only Appraisal Form Desktop Appraisal Form
VA Conventional Use Exterior-Only form for:
·       Form 2055/466 – SFR or PUD
·       Form 1075/72 – Condo
Use Traditional form for:
·       Form 1025/72 – 2-4 Units
·       Form 1004C/70B - Manufactured
Use traditional form for all types:
·       Form 1004/70 – SFR or PUD
·       Form 1073/465 – Condo
·       Form 1025/72 – 2-4 Units
·       Form 1004C/70B – Manufactured
FHA Use traditional form for all types:
·       Form 1004/70 – SFR or PUD
·       Form 1073/465 – Condo
·       Form 1025/72 – 2-4 Units
·       Form 1004C/70B – Manufactured
Use traditional form for all types:
·       Form 1004/70 – SFR or PUD
·       Form 1073/465 – Condo
·       Form 1025/72 – 2-4 Units
·       Form 1004C/70B – Manufactured
USDA Use Exterior-Only form for:
·       Form 2055/466 – SFR or PUD
·       Form 1075/72 – Condo
Use traditional form for all types:
·       Form 1004/70 – SFR or PUD
·       Form 1073/465 – Condo
Loan Type Exterior Only Appraisal Form Desktop Appraisal Form
All Types Exhibits Required
1.     a street map that shows the location of the subject property and of all comparable sales that the appraiser used;
2.     clear, descriptive photographs (either in black and white or color) that show the front of the subject property, and that are appropriately identified (photographs must be originals that are produced either by photography or electronic imaging); and
3.     any other data−as an attachment or addendum to the appraisal report form−that are necessary to provide an adequately supported opinion of market value
Exhibits Required
1.     a location map indicating the location of the subject property and comparable sales, and
2.     photographs of the subject property. It may be challenging in some instances to obtain photographs; however, it is expected that the appraiser utilize available means to obtain relevant pictures of the subject property.

Contacts

Please contact CorrespondentRM@carringtonms.com with any questions.
Carrington thanks you for your business.

Government Agency Approvals

FHA Non-Supervised Mortgagee Approval #:
24751-0000-5
VA Automatic Lender Approval #:
902324-00-00

Mortgagee/Loss Payee Clause

Carrington Mortgage Services LLC
ISAOA/ATIMA
P.O. Box 692408
San Antonio, TX 78269-2408

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This information is provided for your convenience and Carrington Mortgage Services, LLC makes no warranties concerning the accuracy or completeness of any of the information. This is not financial or legal advice and should not be taken as such. This information is for mortgage professionals only and is not intended for distribution to consumers.
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Government Agency Approval | FHA Non-Supervised Mortgage Approval #: 24751-0000-5 | VA Automatic Lender Approval #: 902324-00-00

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