B4-1.2-01, Appraisal Report Forms and Exhibits (02/07/2024)

Appraisers must use the most recent version of the appraisal report forms and include any other information, either as an attachment or addendum to the appraisal report form, needed to adequately support the opinion of market value. Although the scope of work for the appraisal or the extent of the appraisal process is guided by Fannie Mae’s appraisal report forms, the forms do not limit or control the appraisal process. The appraiser’s analysis should go beyond any limitations of the forms, with additional comments and exhibits being used if they are needed to adequately describe the subject property, document the analysis and valuation process, or support the appraiser’s conclusions. The extent of the appraiser’s data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment.

List of Appraisal Report Forms

Appraisal reports must be completed on one of the following Fannie Mae appraisal forms.

For appraisal updates and/or completion reports for all one- to four-unit properties.

Exhibits for Appraisals

The exhibits in the following table must accompany the appraisal report. It should be noted that, in addition to these requirements, the appraiser is expected to provide any additional attachments or addenda to the appraisal report necessary to provide an adequately supported opinion of market value.

A footprint sketch or floor plan must be software-generated (not hand drawn) and indicate dimensions and calculations that demonstrate how the gross living area was derived. The sketch must include the subject's exterior footprint with dimensions. All levels of the dwelling unit(s) must be part of the exhibit. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable.

A floor plan is required for certain appraisal reports. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required.

If the interior layout of the dwelling unit(s) is atypical or functionally obsolete, thus limiting the market appeal for the property in comparison to competitive properties in the neighborhood, Fannie Mae also requires a floor plan. The floor plan must include the following:

• interior walls,
• doorways,
• staircases,
• exterior ingress/egress,
• labels for each room, and
• provide the dimensions of all exterior walls.

For a unit in an apartment-style condo or co-op project, the sketch of the unit must indicate interior perimeter unit dimensions rather than exterior building dimensions (dimensions and estimates for gross living area shown in the condo documents are acceptable). See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal ReportB4-1.3-05, Improvements Section of the Appraisal Report for additional information.

A map showing the location of the subject property and the comparables that the appraiser used.

Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. The subject and all comparables must be appropriately identified.

Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required.

At a minimum, the appraisal report must include photographs of the following:

• the kitchen;
• all bathrooms;
• main living areas of the property (such as living room, family room, dining room, all bedrooms, etc.);
• basement, including all finished and unfinished rooms;
• examples of physical deterioration, if present; and
• examples of recent updates, such as restoration, remodeling, and renovation, if present.

Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D.

Appraisal Update and/or Completion Report ( Form 1004D )

At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included.

Single-Family Comparable Rent Schedule ( Form 1007 )

Required if the property is a one-unit investment property and the borrower is using rental income to qualify. Otherwise, Form 1007 is not required. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental IncomeB3-3.1-08, Rental Income .)

Appraiser Certifications and Limiting Conditions

Each Fannie Mae appraisal report form includes an appraiser’s certification (and, if applicable, a supervisory appraiser’s certification) and a statement of assumptions and limiting conditions. Appraisers may not add limiting conditions.

The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. Acceptable additional certifications might include:

• those required by state law;
• those related to the appraiser’s continuing education or membership in an appraisal organization; or
• those related to the appraiser’s compliance with privacy laws and regulations in the development, reporting, and storage of an appraisal and the information on which it is based.

Lenders are responsible for reviewing any additional certifications made by appraisers to ensure that they do not conflict with Fannie Mae’s policies or standard certifications on Fannie Mae appraisal forms.

The appraiser’s certification #23 is an acknowledgment by the appraiser that certain parties to a mortgage finance transaction that are not the lender/client and/or intended user may rely on the appraisal report. This certification clarifies that such other parties include the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government-sponsored enterprises, and other secondary market participants.

Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user:

“The intended user of this appraisal report is the lender/client. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. No additional intended users are identified by the appraiser.”

The table below provides references to recently issued Announcements that are related to this topic.