Desktop Appraisal Option to Start in March 2022

On January 19, 2022, the government sponsored entity, Federal National Mortgage Association (Fannie Mae) announced that, effective March 19, 2022, it is implementing an update to their Desktop Underwriter product/process that will provide an option for “Desktop Appraisals”.

Requirements to use this approach are tight (one-unit  principal residence, loan-to-value ratio less than or equal to 90% and several others), but in essence a key component of this change will allow an appraiser to conduct analysis and develop an opinion of value with “no physical inspection of the subject property”, while utilizing data that may be provided by various parties (buyer/seller agent, homeowner, builder, appraisal files, etc.) and through the utilization of secondary data sources (public records, MLS, internet, etc.).

This change should be helpful to lenders as they will now have a greater selection of appraisal options, should be able to reduce turnaround times and should be able to reduce appraisal costs.  A quicker, more efficient appraisal, should help to minimize closing delays.

Working with an experienced realtor is essential for these scenarios, as the realtor can provide input to the process (as stated above), by supplementing the appraiser with advanced geographic competency and geographic knowledge.

For more information see Fannie Mae.

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