Under Fannie Mae's Selling Guide, on which report form is a desktop appraisal reported?
Correct Answer
B) Uniform Residential Appraisal Report (Desktop), Form 1004 Desktop
Fannie Mae's desktop appraisal is reported on the Uniform Residential Appraisal Report (Desktop), Form 1004 Desktop. Form 1004 Hybrid and Form 1073 Hybrid are the hybrid appraisal forms, and condo units are not eligible for a desktop appraisal, so a condominium form does not apply.
Why This Is the Correct Answer
Option B is correct because Fannie Mae states that a desktop appraisal is reported on the Uniform Residential Appraisal Report (Desktop), Form 1004 Desktop.
Why the Other Options Are Wrong
Option A: Individual Condominium Unit Appraisal Report (Hybrid), Form 1073 Hybrid
Option A is wrong because Form 1073 Hybrid is a hybrid appraisal form for condominium units. Condo units are not eligible for a desktop appraisal.
Option C: Uniform Residential Appraisal Report (Hybrid), Form 1004 Hybrid
Option C is wrong because Form 1004 Hybrid is used for hybrid appraisals, which rely on a property data collection by a trained third party. A desktop appraisal is reported on Form 1004 Desktop.
Option D: Individual Condominium Unit Appraisal Report, the standard Form 1073
Option D is wrong because the condominium unit form is not the desktop form, and condo units are ineligible for a desktop appraisal. The desktop report form is Form 1004 Desktop.
Desktop lives on 1004 Desktop
The form name carries the method: a desktop appraisal is reported on Form 1004 Desktop, a hybrid on Form 1004 Hybrid or Form 1073 Hybrid.
How to use: Use this to match each alternative appraisal type with its report form.
Exam Tip
When forms are listed, match the method word in the form name to the method in the question.
Common Mistakes to Avoid
- -Reporting a desktop appraisal on a hybrid form
- -Assuming a condominium unit can receive a desktop appraisal
Concept Deep Dive
Analysis
This question tests the basic identification of the desktop appraisal report form. Knowing which forms go with which alternative appraisal type helps on later questions about eligibility and reporting.
Background Knowledge
Fannie Mae offers alternatives to a traditional appraisal for certain loan casefiles, including desktop and hybrid appraisals. Each uses its own version of the appraisal report form so the reader knows how the subject data were obtained.
Real-World Application
A lender selects the desktop option DU offered for a principal residence purchase and orders a Form 1004 Desktop from an appraiser, who completes it from alternative data sources without inspecting the property.
More Emerging Methods Questions
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