As part of their appraisal modernization efforts, Fannie Mae and Freddie Mac (the GSEs) have issued test forms for Hybrid and Desktop appraisal assignments. The forms will be made available to the major appraisal report software providers.
The GSEs have also aligned on guidance regarding the use of these test forms, including formal definitions for “Hybrid” and “Desktop” assignments. These two terms are often used interchangeably by appraisers and clients, but under the GSEs’ new definitions, they are different types of assignments.
A Hybrid appraisal is defined as, “An appraisal assignment consisting of a desktop appraisal for which the scope of work includes reviewing a recent interior/exterior property data report.”
A Desktop appraisal is defined as, “An appraisal assignment for which the scope of work does not include field work by the appraiser and does not include reviewing a recent interior/exterior property data report.”
The GSEs have also issued guidance for these test forms, which can be found online here:
URAR Hybrid and Desktop Appraisal Forms – Quick Reference
URAR Hybrid and Desktop Appraisal Forms – Overview
It is important to note that appraisers should not begin using these forms immediately. They will be used for testing for a period of time before being formally adopted. The GSEs caution appraisers to communicate with their clients to ensure they are using the correct form for the assignment.
One other important note: These test forms are not to be used for appraisal assignments prepared under the temporary COVID-19 guidance. Appraisers should continue to use the current URAR form for these assignments.
Written by Dan Bradley. Daniel A. Bradley, SRA, CDEI is the Director of Online Appraisal Curriculum for McKissock Learning. He has been a practicing real property appraiser since 1987, and has been instructing and authoring appraisal courses since 1992. He is a state certified general appraiser in Pennsylvania and is currently on the FHA appraiser roster. From 2004 to 2013, Dan was a member of the Pennsylvania State Board of Certified Real Estate Appraisers, serving for five years as vice-chairman and three years as chairman. He has also has served as a contracted expert witness appraisal reviewer for the Pennsylvania Department of State.
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