Fannie Mae and Freddie Mac
New URAR and 2055 forms are required
starting November 1
Fannie Mae has substantially revised the URAR and 2055 forms, as well as many others. You'll be seeing a lot of these new forms. Starting November 1, the forms you're used to are going to start going away for good, replaced by new versions. Some of the highlights are below.
One exception to the form change over date will be for FHA mortgages. As of this writing, HUD will implement a mandatory date of
This is a major change. It's been more than 10 years since Fannie revamped its appraisal forms. There's a lot new and different in the new forms, and we want to make sure you're up to speed on the major ways the new forms differ from the old. There are literally dozens of ways, but below are the most important.
What's the bottom line? The new forms require more research and analysis, firmer representations on the part of appraisers, and eliminate the cost and income approaches to value. You and your bank will be getting more useful, solid information, which you may find in different places than you're used to. But you'll still be getting the quality, professional service you expect from us. We won't miss a beat with the new forms and we want to be sure you won't, either.
Some of the major changes and features are noted below
More extensive research required
The new form requires the appraiser to report how many properties are listed for sale within the subject’s neighborhood and the listing price range. Additionally, it requires the appraiser to research and report the number of comparable sales in the neighborhood in the last 12 months and their sales price range.
The 2055 form previously used for limited assignments and “drive-by’s” now asks for more data including an extensive sales history of the subject and comparable sales. The major change with the new 2055 form is that this form will be for exterior only assignments. If you require an interior inspection of the subject property, please order a 1004 URAR form.
The new form asks whether there are any adverse conditions that affect the livability, soundness or structural integrity of the property. The word “apparent” has been removed, likely requiring more research from the appraiser.
And the appraiser now certifies to Fannie Mae that the client has not asked the appraiser to reach a certain value in the report. We take this new representation on our part seriously.
No more cost or income approaches