Announcement 2020-026 COVID-19 Coronavirus Guidance and 2020-038 FHA COVID-19 Coronavirus Guidance provided guidance for temporary flexibilities to permit an exterior-only inspection in certain situations. Below provides clear instruction for appraisal ordering.
For conventional conforming and FHA appraisal orders, follow the guidance provided in the above two announcements, the COVID-19- Guidance Job Aid and the COVID-19 Quick Reference by Product Job Aid.
- It is the responsibility of the individual placing the order to choose the correct appraisal type; if an exterior-only inspection is ordered, do the announced flexibilities permit?
- If an interior-exterior inspection order was originally placed and cannot be performed, verify that the transaction is eligible for an exterior-only inspection. Upon confirmation, you may communicate the change to the AMC, regardless of the original order date.
- When ordering an exterior-only inspection, be sure to select the appropriate appraisal type.
- The AMC will not know if an exterior-only inspection is or is not acceptable per investor requirements.
The following are NOT eligible for an exterior-only inspection and require an interior inspection:
- cash-out refinance
- properties subject to Texas Section 50(a)(6)
- new construction, and
- a rate and term refinance that is not owned by Fannie Mae or Freddie Mac
Note: Failure to validate that a loan is eligible for an exterior-only inspection prior to placing a new order and/or changing an existing order will impact loan eligibility. Exceptions cannot be accommodated when the incorrect appraisal type is ordered and will require a new appraisal report prior to loan approval and closing.
Please reference the NewRez Lending Library for the changes outlined in this announcement.