Approximately 20% of appraisal amendment requests on purchase transactions are related to contract changes. Fannie Mae has recognized this can be a drain on appraisers and a drag on the delivery of appraisals to lenders. This update is a real solution that can save appraisers and lenders time – and money.
The Fannie Mae Selling Guide Announcement (SEL-2016-09) states that simple changes to the purchase contract after the appraisal is complete no longer need to be sent back to the appraiser.
But what about USPAP? For those concerned about USPAP compliance we offer this clarification. The Fannie Mae Selling Guide (SEL-2016-09) is consistent with USPAP Standards Rule 1-5(a) which states:
“When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business:
(a) analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal.”
The key phrase is “as of the effective date of the appraisal.” According to USPAP, the appraiser is not obligated to update the appraisal based on contract amendments occurring after the effective date.