Under Fannie Mae's Selling Guide, a lender submitted a property data collection to the Property Data API for value acceptance + property data, and the loan then lost that eligibility. Which option does the Selling Guide give the lender?
Correct Answer
D) Obtain a hybrid appraisal, which is permitted after this loss of eligibility
Fannie Mae's hybrid appraisal rules note that a lender may obtain a hybrid appraisal if a loan loses value acceptance + property data eligibility after the property data collection was submitted to the Property Data API. Losing eligibility means the loan cannot be delivered under that option, a property data collection is not an appraisal, and a data collector does not prepare a desktop appraisal.
Why This Is the Correct Answer
Option D is correct because the Selling Guide states that a lender may obtain a hybrid appraisal if a loan loses value acceptance + property data eligibility after the property data collection was submitted to the Property Data API. A hybrid appraisal is an appraisal option that requires a property data collection.
Why the Other Options Are Wrong
Option A: Deliver the loan under value acceptance + property data, since the data were already submitted
Option A is wrong because the loan has lost value acceptance + property data eligibility. Having already submitted the data does not restore eligibility for that option.
Option B: Have the property data collector convert the collection into a Form 1004 Desktop
Option B is wrong because a property data collector gathers data and does not develop an appraisal, and a desktop appraisal does not use a property data collection. The Selling Guide names a hybrid appraisal for this situation.
Option C: Treat the submitted property data collection as the appraisal for the loan delivery
Option C is wrong because a property data collection is not an appraisal. Once value acceptance + property data is lost, the lender needs an appraisal, such as the hybrid appraisal the Selling Guide permits.
Lost VA+PD? Go hybrid
The data collection already exists, so the natural fallback is the appraisal type built on a data collection: the hybrid.
How to use: Use this when a question describes a loan that drops out of value acceptance + property data after the data collection.
Exam Tip
Keep the products straight: a property data collection supports value acceptance + property data and hybrid appraisals, but it is not itself an appraisal.
Common Mistakes to Avoid
- -Treating a property data collection as an appraisal
- -Assuming a loan keeps value acceptance + property data status once data is submitted
- -Confusing desktop appraisals, which use no property data collection, with hybrids
Concept Deep Dive
Analysis
This question tests the link between value acceptance + property data and hybrid appraisals. Both rely on a property data collection submitted to the Property Data API, so when the value acceptance + property data route closes, the hybrid appraisal is the route the Selling Guide names.
Background Knowledge
Under value acceptance + property data, the lender obtains a property data collection in place of an appraisal. A hybrid appraisal uses the same kind of data collection, delivered to the Fannie Mae Property Data API, as the basis for an appraiser's analysis.
Real-World Application
A lender orders a property data collection for a refinance offered value acceptance + property data, and a later DU resubmission removes that offer. The lender engages an appraiser to complete a hybrid appraisal.
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