Under Fannie Mae Selling Guide B4-1.2-02 for a Form 1004 Desktop appraisal, which statement correctly describes the minimum scope of work?
Correct Answer
B) The minimum scope does not include a current inspection of the subject property or comparable sales by the appraiser; the appraiser relies on data from alternative methods or sources
For the specified Fannie Mae Form 1004 Desktop option, the minimum scope omits a current inspection of the subject or comparables by the appraiser and uses appropriate alternative information. The appraiser still develops an appraisal and must have reliable information for credible results. An automated score alone is not the appraisal. Program eligibility and restrictions apply; this is not a universal USPAP rule for every assignment.
Why This Is the Correct Answer
Option B is correct because Fannie Mae Selling Guide B4-1.2-02 states that the minimum scope for Form 1004 Desktop does not include a current inspection of the subject or comparable sales by the appraiser; the appraiser relies on data from alternative methods or sources to identify property characteristics and condition. The appraiser still must have reliable information for credible results.
Why the Other Options Are Wrong
Option A: The appraiser must personally complete a current interior and exterior on-site inspection of the subject property and of each comparable sale used in the sales comparison grid of the report
Option A says the appraiser must personally complete a current interior and exterior inspection of the subject and each comparable. That describes a full inspection scope, not the desktop scope, which omits a current inspection by the appraiser.
Option C: Desktop appraisals are permitted for refinance transactions at any LTV
Option C says desktop appraisals are permitted for refinance transactions at any LTV. Desktop appraisals are permitted only for certain transactions under Fannie Mae's eligibility rules, so an unrestricted any-LTV refinance statement is not the described minimum scope and is not supported.
Option D: An AVM score alone satisfies the Form 1004 Desktop scope of work when the LTV is below 80%
Option D says an AVM score alone satisfies the Form 1004 Desktop scope when LTV is below 80%. An automated score alone is not an appraisal; the desktop scope still requires an appraiser to develop and report a value opinion.
Desktop means desk, not doorstep
A desktop appraiser works from the desk, not the doorstep: no current inspection of subject or comps. The appraiser still forms the value opinion.
How to use: Use this to recall the inspection scope of a Form 1004 Desktop appraisal.
Exam Tip
Separate the scope question from eligibility questions. The desktop scope omits a current inspection, but an AVM score alone does not become the appraisal.
Common Mistakes to Avoid
- -Believing a desktop appraisal requires inspecting the comparables
- -Assuming an AVM score can replace the desktop appraisal
- -Assuming desktop appraisals are available for all loans
Concept Deep Dive
Analysis
This question tests the minimum scope of work for a Fannie Mae Form 1004 Desktop appraisal. The appraiser does not perform a current inspection of the subject or comparables and relies on alternative data sources. The appraiser still develops an appraisal, and program eligibility rules apply.
Background Knowledge
Fannie Mae's desktop appraisal option uses the Form 1004 Desktop for eligible transactions. The appraiser relies on alternative data, such as public records, MLS and floor plans, rather than a current personal inspection. This is a program-specific scope, not a universal USPAP rule for all assignments.
Real-World Application
A lender's eligible purchase loan qualifies for a desktop appraisal. The appraiser uses MLS photos, public records and a floor plan to describe the home and selects comparables from data sources without visiting them. The appraiser develops and reports the value opinion on the desktop form.
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