A lender assigns an appraiser who has never worked in the subject market and does not have access to local data sources. The lender says the appraiser can learn as they go because the fee is low and the turn time is fast. For a Fannie Mae mortgage assignment, what is the best response?
Correct Answer
A) Use an appraiser with the requisite market knowledge and access to local data
Fannie Mae requires lenders to use appraisers who have the knowledge necessary for the specific market and property type and who have access to appropriate local data sources. Quality and competency must outweigh fee or turnaround considerations.
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In two similar assignments, appraiser Heather Mills writes extensive comments labeling one area a "high-crime neighborhood" and ties that phrase to a lower value conclusion, even though she did not analyze crime statistics consistently across comparable assignments. What is the best appraisal compliance conclusion?
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