Per recently announced guideline updates from HUD and VA, the following appraisal relief applies to all FHA/VA & USDA loans, unless otherwise notated, that close on or before May 17,2020
FHA: Effective immediately, for appraisal inspections completed on or before May 17,2020, LoanStream will allow either a desktop appraisal or an exterior-only inspection appraisal, as outlined below, in lieu of the interior and exterior inspection appraisal (i.e. traditional appraisal) as long as there is sufficient information for the appraiser to complete the assignment. The optional Exterior-Only and Desktop-Only appraisals must be reported on the existing Acceptable Appraisal Reporting Forms by Property and Assignment Type. These forms will require amended certifications and clear scope of work disclosures. The appraisal report must include a signed certification indicating whether the Appraiser did or did not personally inspect the subject property and the extent of the inspection. Forms 2055/1075 are not acceptable.
USDA: Effective immediately, with exception to New Construction Properties, LoanStream will allow an exterior-only inspection appraisal (FHLMC 2055/FNMA1075) in lieu of the interior and exterior inspection appraisal (i.e. traditional appraisal) as long as there is sufficient information for the appraiser to complete the assignment. In such cases, appraisers are not required to certify that the property meets HUD HB 4000.1 standards.
VA: Effective immediately, with exception to those outlined below, an Exterior Only appraisal with enhanced assignment conditions or in limited instances, a Desktop appraisal is allowed.
Should you have any additional questions, please contact your manager.