Contact Editor

Fannie Mae, Freddie Mac Reinforce That Virtual Inspections are Not Sufficient to Fulfill Interior Inspection Requirements

by Todd Paradis | Apr 15, 2020

On April 14, Fannie Mae and Freddie Mac issued updated guidance surrounding the usability of virtual inspections (having a home’s occupant provide a video walkthrough, e.g.) in connection with desktop, exterior-only, and interior inspection appraisals. In the guidance, Fannie Mae’s statement reads:
Appraisers may use virtual inspection methods to augment the data and imagery that is used for either a desktop appraisal or an exterior-only appraisal. All traditional appraisals require the appraiser to perform a complete onsite interior and exterior inspection of the property. A virtual inspection cannot be used as a substitute for the onsite interior and exterior inspection for a traditional appraisal.
Similarly, Freddie Mac says the following:
Appraisers may use virtual inspection methods to augment the data and imagery that is used for either a desktop appraisal or an exterior-only inspection appraisal. All interior and exterior inspection appraisals require the appraiser to perform a complete onsite interior and exterior inspection of the property. A virtual inspection is not a substitute for an on-site interior and exterior inspection.
On both fronts, the GSEs have reinforced their previous statements that interior inspections still require the appraiser to physically set foot into the subject property. To read Fannie Mae’s updated Lender Letter 2020-04, click here. To read Freddie Mac’s updated Bulletin 2020-11, click here.