On July 10, Freddie Mac released Bulletin 2009-18 to sellers and servicers. The bulletin addresses appraisals and underwriting. Regarding appraisals, the bulletin focuses on qualified appraisers, credible appraisers, comparable sales, and monitory appraisal quality. Freddie Mac reminds sellers that they must be in compliance with the Home Valuation Code of Conduct (HVCC).
Here are the highlights from the bulletin:
-Appraisers are reminded that they must be familiar with the local market in which the property is located and must be competent to appraise the subject property.
-Appraisers must be provided with a copy of the sales contract.
-Freddie Mac does NOT have requirements about comparable sales. The bulletin states “Freddie Mac does not require appraisers to use REO or short sales.” However, the appraiser may find these properties are representative of the properties available to typical purchasers so appraisers may consider their use.
-Sellers are encouraged to consider membership in a professional appraisal organization as a qualification criterion, but membership or lack of membership should not be the only criterion for selecting appraisers.
-Sellers should ensure appraisers have reasonable time to perform appraisals.