From Appraiser News Online, Freddie Mac is restricting how lenders can use broker price opinions:
On March 31, Freddie Mac revised its Seller/Servicer Guide to strictly prohibit its lenders from using broker price opinions to value properties for mortgage purchases. Though Freddie had refrained from using BPOs as a matter of policy, the changes made to section 44.7 of its Selling Guide leave no room for loopholes.
The revised Selling Guide states that to be acceptable for a transaction, each mortgage file must contain one of the following reports:
– A written appraisal report
– A written inspection report
– A print-out of the Last Feedback Certificate with the Minimum Assessment Feedback of Form 2070 or PIA
Also clearly stated in the revised language of Freddie’s Selling Guide is the requirement that the Seller may not use tax-assessed valuations or BPOs to determine value.
You can access the entire Selling Guide, here.