May an appraisal be transferred to a lender from a correspondent lender and, if so, under what circumstances?
Yes, a lender may accept an appraisal from a correspondent lender that complies with the Code.
A mortgage broker submits a loan to lender A, which orders an appraisal. The broker later decides to submit the loan to lender B because it is offering better terms, or for another reason. May the appraisal obtained by lender A be used by lender B (assuming the mortgage broker has no control over or involvement in the assignment)?
Yes, a lender may accept an appraisal from a different lender that complies with the requirements of the Code and in particular Section III.A. in connection with the loan being originated. Lender A must be named as client on the appraisal report.
Lender A (an approved Fannie Mae Seller/Servicer) originates and closes a loan in its name, but sells it to lender B (another Fannie Mae approved Seller/Servicer), which in turn sells that loan to Fannie Mae. Is lender B under any obligation to obtain a new appraisal?
No. Lender B may buy a closed loan from Lender A and sell the loan to Fannie Mae without a new appraisal if Lender B can represent and warrant that any appraisal conducted in connection with the loan conforms to the Code.
Lender B originates a loan using an appraisal transferred from Lender A, who provided Lender B with written assurances that the appraisal was obtained in a manner consistent with the Code. Will Fannie Mae hold Lender B liable for remedies if it is discovered after the transfer that Lender A committed a Code violation?
All Fannie Mae–approved Seller/Servicers must represent and warrant they have in place the structure, policies, and procedures required to comply with the Code and that appraisals for mortgages with application dates on or after May 1, 2009, were obtained in a manner consistent with the Code. In the situation described in the question:
If Lender A is a Fannie Mae–approved Seller/Servicer, Fannie Mae will hold Lender A responsible for ensuring its processes are in compliance with the Code.
Fannie Mae will hold Lender B responsible if it did not take appropriate precautions to detect violations of the Code committed by Lender A. For example, Lender B should check to make sure that a mortgage broker or real estate agent is not listed as the lender/client on the appraisal report.
If Lender A is not a Fannie Mae–approved Seller/Servicer, Fannie Mae will hold Lender B fully responsible for any Code violations.
Section III.A of the Code allows a lender to accept an appraisal prepared by an appraiser for a different lender, provided the lender: (1) obtains written assurances that such other lender follows the Code in connection with the loan being originated; and (2) determines that such appraisal conforms to its requirements for appraisals and is otherwise acceptable. Will Fannie Mae provide a standard form to the lender so that the written assurance can be documented?
Fannie Mae will not provide a standard form. The lender is responsible for documenting the written assurance from the other lender.
Can an AMC or a third-party designee provide the written assurance (referenced in Q49) or does the assurance have to come from the prior lender?
The assurance must come from the original lender.
