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 |
- Appraisers must boldly and inconspicuously state “Per Department of Veterans Affairs, no interior inspection was provided due to COVID-19.”
- 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.
- 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.
- 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.
- 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.
- 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.
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2025
. Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites 110 & 200-A, Anaheim, CA 92806. NMLS ID # 2600. Toll Free # 800-561-4567. All rights reserved. Restrictions may apply. All loans are subject to credit, underwriting and property approval guidelines. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: