Under Fannie Mae's Selling Guide, an appraiser completing a Form 1004 Desktop receives interior photos and a floor plan from the listing agent, who has a financial interest in the sale. How may the appraiser use this material?
Correct Answer
B) Use it after verifying it from a disinterested source and judging it accurate and reliable
For a Form 1004 Desktop, Fannie Mae lets the appraiser accept data, photos and floor plans from a party with a financial interest in the sale if the appraiser verifies them from a disinterested source, and the appraiser must still decide whether the information is accurate and reliable. Excluding the material goes beyond the rule, a "subject to" verification of condition is not permitted, and the lender's responsibility for the property description does not replace the appraiser's own verification.
Why This Is the Correct Answer
Option B is correct because Fannie Mae allows a desktop appraiser to accept photos and floor plans from a party with a financial interest if the appraiser verifies the data from a disinterested source. The appraiser must also determine that the information is accurate and reliable enough to produce a credible report.
Why the Other Options Are Wrong
Option A: Exclude it, because data from an interested party may not be used in the report
Option A is wrong because the Selling Guide does not bar interested-party data from a desktop appraisal. It permits the appraiser to accept such data once it is verified from a disinterested source.
Option C: Use it as provided and make the appraisal subject to verification of the interior condition
Option C is wrong because a desktop appraisal may not be made "subject to" verification of the subject's condition, quality or physical characteristics. The appraiser has to resolve the condition question from reliable data before completing the report.
Option D: Use it as provided, because the lender is responsible for the property description
Option D is wrong because the lender's responsibility for the property description does not relieve the appraiser of verifying interested-party data. Using the material as provided skips the required verification from a disinterested source.
Interested data needs a neutral check
Data from someone with a financial interest can be used only after a disinterested source backs it up, and condition cannot be left to a later "subject to" check.
How to use: Use this when a desktop question involves photos, plans or descriptions supplied by an agent, seller or borrower.
Exam Tip
When an answer choice adds a "subject to" verification of condition for a desktop appraisal, check it against the rule that such conditions are not permitted for this form.
Common Mistakes to Avoid
- -Believing interested-party information can never be used in a desktop appraisal
- -Making a desktop appraisal subject to later verification of interior condition
- -Assuming the lender's responsibility for the property description removes the appraiser's verification duty
Concept Deep Dive
Analysis
This question tests how a desktop appraiser may rely on information from an interested party. Two rules interact: interested-party data is usable once verified from a disinterested source, and the appraiser cannot defer the condition question with a "subject to" verification. The best answer satisfies both.
Background Knowledge
In a desktop appraisal, the appraiser relies on data obtained from alternative methods or sources rather than a personal inspection. Because that information may come from people with a stake in the transaction, the program pairs flexibility in sources with a verification requirement and a ban on condition-related assumptions.
Real-World Application
A listing agent emails interior photos and a sketch of a home to the desktop appraiser. The appraiser compares the room count, layout and living area with public records and finds them consistent, judges the photos accurate and reliable, and then uses them in rating condition.
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