Underwriting Guideline Updates – Appraisal Options

Bulletin 2023-062 Underwriting Guideline Updates – Appraisal Options

Newrez LLC "Newrez" Approved Correspondent Clients; effective immediately, unless otherwise noted, for all loans in pipeline, the topics contained in this announcement have been updated in the Conventional Conforming Underwriting Guides.

 

Please use this announcement as guidance until all applicable underwriting guides are published.

 

Conventional Conforming Updates

 

Chapter 1J Appraisal Requirements  

 

The following updates align with Fannie Mae and Freddie Mac guidelines as identified below::

 

Appraisal Options have been expanded to accept:

 

  • Hybrid or Bifurcated Appraisals (Fannie Mae Form 1004 Hybrid/Freddie Mac 70H)
  • ACE+PDR (Automated Collateral Evaluation + Property Data Report) (Freddie Mac)
  • Value Acceptance + Property Data (Fannie Mae)

 

Completion Alternatives will now be accepted to align with Fannie Mae and Freddie Mac:

 

  • Warranty of Completion of Construction (Freddie Mac form 400 rev.06.07.23)
  • Completion Alternatives Attestation Letters (Fannie Mae)
    • Borrower/Builder Attestation Letter
    • Borrower Attestation letter

 

Complete guidelines can be found in the Conventional Underwriting Guide, Chapter 1J, Appraisal requirements

 

Additional Resources: