Fannie Mae Clarification on Appraisal Contract Amendments Can Save You 48 Hours on Appraisal Turn-Times.
Lenders no longer need to send amendments affecting the sale price, transaction terms, financing concessions, closing costs, closing date or other clerical issues to appraisers for Fannie Mae loans.
In the latest Selling Guide, Fannie Mae clarified that lenders only have to provide appraisers with contract amendments made after completion of the appraisal if the amendment affects the description of the property.
Minor updates to the contract, such as changes to seller paid closing costs or changes to the contract price, do not require an updated appraisal.
Contract amendments are the number one reason lenders go back to AMCs and appraisers on residential purchase transactions. An appraiser response to satisfy these requests typically takes between 24 and 48 hours.
This valuable clarification now makes life easier for the appraiser, appraisal management company, lender and – most importantly – the borrower.
You can get a copy of the Fannie Mae Selling Guide here (SEL-2016-09).
Have questions about how this may affect your business?
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