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Freddie Mac Releases COVID-19 Appraisal Relief Plans

by Todd Paradis | Mar 23, 2020

Expands Qualifications for Appraisal Waivers

On March 23, Freddie Mac released its own plan to address appraisal issues during the COVID-19 outbreak, mirroring in large part the efforts announced by Fannie Mae. This includes increased use of desktop and exterior-only appraisals where a traditional appraisal with an interior inspection cannot be performed. Freddie Mac also provided updated disclosures for use when completing an appraisal for a loan to be sold to them.

Where Freddie differed from Fannie was its announcement of expanded eligibility for appraisal waivers. For no-cash-out refinances, Freddie Mac will offer appraisal waivers on loans less than or equal to 90% of the value of the property collateralizing the loan; where a partial or full cash-out takes place, the limits are at 70% or less for primary residences, and 60% for second homes.

To read the full text of Freddie Mac’s Bulletin 2020-5, click here.