Flexibilities Guide: Permissible Appraisal Requirements During COVID-19 (through May 17, 2020)

For informationalpurposes only. While efforts were made to verify the information provided,this document may contain typographicalor other errors and should not be assumed to be error free. The information presented in this document is subject to updates and should not be used to replace either official documents or the advice of a qualified professional. Nothing
herein should be construed to be legal advice or suggestions on what business activities may or may not be permissible in a jurisdiction. Appraisers are advised to carefully review all applicable orders to determine what business activities are permitted or prohibited, and any required precautions that must be taken when engaging in business activities.

This document is provided “AS-IS” and without any warranty of any kind, expressed or implied. This document is presented for informationalpurposes only with the understanding that the Appraisal Institute is not engaged in rendering legal, accounting, or other professional advice or services. Nothing in this document is to be construed as the offering of such advice or
services. The Appraisal Institute does not warrant the quality, accuracy, completeness or timeliness of the data and information contained in this document. All warranties are expressly disclaimed. Readers who rely or use this document assume the full risk of any reliance or use. In no event shall the Appraisal Institute, its officers, directors, employees,Designated
Members, Candidates, Practicing Affiliates, Affiliates, agents or representatives be jointly or severally, liable for any actual, direct, indirect, punitive, or consequential damages arising from such use, even if advised of the possibility of such damages. Publication date (updated) April 14, 2020.

Suggested addenda language to include when using third party data (modified 1004/70, 2055) : Use of third-party data and lack of actual personal visual inspection by the appraiser might have
affected the assignment results.

GSEs
Mortgage Purpose Permissible Appraisals Forms - Fannie Mae/Freddie Mac
Purchase Transaction Interior and exterior inspection appraisal, desktop appraisal or exterior-only appraisal 1004/70, 1004/70 with modified SOW/Desktop Cert, 2055 (or 1075) with appropriate modified exterior certification
Condo Purchase Transaction Interior and exterior inspection appraisal, desktop appraisal or exterior-only appraisal Form 1073/465, 1073/465 with modified SOW/Desktop Cert, or 1075/465 with modified Exterior certification
Second Homes Interior and exterior inspection appraisal 1004/70 (or other appropriate interior/exterior form)
New Construction Interior and exterior inspection appraisal, desktop appraisal or exterior-only appraisal 1004/70, 1004/70 with modified SOW/Desktop Cert, 2055 with appropriate exterior certification
2-4 Family/Duplex Small Residential Income Property Appraisal Report Form 1025/72, Form 1025/72 with Modified SOW/Desktop Cert or 1025/72 with Modified Exterior certification

Refinances
No cash-Out Refinance Interior and exterior inspection apprasial or exterior-only inspection (GSE held loans) 1004/70, 2055 with appropriate exterior certification
Cash-out Refinance Interior and exterior inspection appraisal 1004/70 (or other appropriate interior/exterior form*)
Construction Conversions Interior and exterior inspection appraisal 1004/70 (or other appropriate interior/exterior form*)
Renovation Interior and exterior inspection appraisal 1004/70 (or other appropriate interior/exterior form*)
Construction Interior and exterior inspection appraisal 1004/70 (or other appropriate interior/exterior form*)
* 2-4 Family/Duplex utilizes 1025/72 with Modified SOW/Desktop certification or 1025/72 with Modified Exterior certification
Fannie Mae Lender Letter 2020‐04
Freddie Mac Bulletin 2020‐8
FHA
Mortgage Purpose Permissible Appraisals Forms
FHA Purchase Transactions
Forward Transaction Interior and exterior inspection appraisal, desktop-only, or exterior-only 1004/70, 1004/70 with modified SOW
HECM Purchase Transaction Interior and exterior inspection appraisal, desktop-only, or exterior-only 1004/70, 1004/70 with modified SOW
New Construction Interior and exterior inspection appraisal 1004/70
Construction to Permanent Interior and exterior inspection appraisal 1004/70
Building on Own Lands Interior and exterior inspection appraisal 1004/70
203(k) purchases Interior and exterior inspection appraisal 1004/70

Refinances
Traditional HECM Interior and exterior inspection appraisal, or exterior-only 1004/70, 1004/70 with modified SOW
HECM-to-HECM Refinance Interior and exterior inspection appraisal, or exterior-only 1004/70, 1004/70 with modified SOW
Rate and Term Refinance Interior and exterior inspection appraisal, or exterior-only 1004/70, 1004/70 with modified SOW
Simple Refinance Interior and exterior inspection appraisal, or exterior-only 1004/70, 1004/70 with modified SOW
Cash-out Refinance Interior and exterior inspection appraisal 1004/70
203(k) refinance Interior and exterior inspection appraisal 1004/70
Mortgagee Letter 2020‐05
VA
Mortgage Purpose Permissible Appraisals Forms
Purchase Transaction (vacant) Interior and exterior inspection appraisal 1004/70 with modified assignment conditions
Exterior-only: FNMA 2055/1075 form. For manufactured homes and multi-unit (2-to-4 unit) properties appraisers will use the
Interior and exterior inspection appraisal, Exterior-only appraisal with enhanced assignment conditions. Desktop-only* 1004C or 1025 form. Desktop-only: FNMA 1004,1073, 1004C, 2025 and the appraiser will be required to attach a copy of the
Purchase Transaction (occupied) are allowed if there is a mandatory" shelter at home" or "quarantine" provided Scope of Work (SOW) Exhibit A, certifications, and assumptions in all reports
Exterior-only: FNMA 2055/1075 form. For manufactured homes and multi-unit (2-to-4 unit) properties appraisers will use the
Interior and exterior inspection appraisal, Exterior-only appraisal is permissible with enhanced assignment conditions. 1004C or 1025 form. Desktop-only: FNMA 1004,1073, 1004C, 2025 and the appraiser will be required to attach a copy of the
Refinance Transaction (occupied) Desktop-only* are allowed if there is a mandatory" shelter at home" or "quarantine" provided Scope of Work (SOW) Exhibit A, certifications, and assumptions in all reports.
* If the lender will not accept a Desktop appraisal, the appraiser will place the
assignment on hold for 30 days and then subsequently cancel, if the status has not changed.
**VA may require appraisers to complete additional inspections to be added to the appraisal within one year of
completing an Exterior-Only or Desktop appraisal under the same fee payment.
Circular 26‐20‐13, April 10, 2020
RHS
Mortgage Purpose Permissible Appraisals Forms
Purchase Transaction Interior and exterior inspection appraisal or exterior-only 1004/70, 2055
Non-streamlined Refinance Interior and exterior inspection appraisal or exterior-only 1004/70, 2055
New Construction Interior and exterior inspection appraisal 1004/70
Construction-to-Permanent Interior and exterior inspection appraisal 1004/70
*For exterior-only appraisals, appraisers are not required to certify that the property meets HUD HB 4000.1 standards.
March 27, 2020 Stakeholder Announcement