GENERALIZACIÓN DE PROCESOS

Photographs must be original photographs or electronic images and be illustrative of the property. The photographs must be clear, appropriately identified and must clearly show the improvements and conditions that have a material effect on the market value or marketability of the property.

Interior Photographs

Interior photographs of specific rooms must be included in the appraisal report whenever an interior inspection is performed.

At a minimum, interior photos must include: • Kitchen

• Bathrooms (ALL) • Main living area

• Examples of physical deterioration, if present

• Examples of recent updates, restoration, remodeling or renovation, if present

109.2.5

Appraisal Forms

The appraisal form must be prepared and signed by an approved appraiser. The appraisal report must be on the current version of the appropriate appraisal form listed below. There are two types of appraiser

inspections of the subject property:

• Interior and Exterior Inspection - The appraiser is expected to perform a complete visual inspection of the interior areas of the subject property and report the condition of the improvements in factual and specific terms.

• Exterior-Only Inspection - The appraiser is expected to perform a visual inspection of the exterior areas of the subject property from at least the street and report the condition of the improvements in factual, specific terms. The appraiser is expected to identify and report any physical deficiencies that

Section 109 Property and Appraisal

E Mortgage Management, LLC

This document is intended for use by E Mortgage Management, LLC and its business partners only. It may not be disseminated without express, written consent of E Mortgage Management, LLC. EMM Wholesale Lending is a division of E Mortgage Management, LLC.

© 2013 – E Mortgage Management, LLC NMLS #2926

Last Updated 9/3/2013 Page 101

Exterior-Only Inspection Residential Report (Fannie Mae and Freddie Mac 2055)

Use for appraisals of one-unit properties and units in a PUD or a one-unit property with an accessory unit. It may also be used for a unit in a Detached Condominium project if the appraiser includes information about the project and its condition. An exterior-only inspection of the subject property is required. DU and LP will not require a 2055. Use only when guidelines specifically require a 2055 as additional documentation. The appraisal report must be UAD compliant.

Individual Condo Unit Appraisal Report (Fannie Mae 1073, Freddie Mac 465)

Use for appraisals of one-unit properties in condominium projects. An interior and exterior property inspection is required.

The appraisal report must be UAD compliant.

Exterior-Only Inspection Individual Condo Unit Appraisal Report (Fannie Mae 1075 and Freddie Mac 466)

Use for appraisals of one-unit properties in condominium projects. An exterior-only property inspection is required. DU will not require a 1075 or 466. Use only when guidelines specifically require a 1075 or 466 as additional documentation.

The appraisal report must be UAD compliant.

Small Residential Income Property Appraisal Report (Fannie Mae 1025 and Freddie Mac 72)

Use for appraisals of two- to four-unit properties (including two- to four-unit properties in PUD or condominium projects. An interior and exterior property inspection is required.

DU Property Inspection Report (Fannie Mae Form 2075)

The DU Property Inspection Report is not an appraisal report. It is a property inspection report that requires an exterior-only inspection of the subject property, completed by an appraiser. DU will not require a 2075. Use only when guidelines specifically require a 2075 as additional documentation.

Property Inspection Waiver

A Property Inspection Waiver (PIW) is a DU recommendation that results in the waiver of both the property inspection and appraisal report. A PIW is only permitted on DU Refi Plus and Open Access loans.

The stated value of the subject property provided at time of application and submitted to DU resulting in the PIW is the determined value of the subject property.

• Value may not arbitrarily be increased and submitted to DU.

• A Property Inspection Waiver may not be used if an appraisal or inspection has been performed. • Evidence that the property is not listed for sale is required.

When DU recommends a Property Inspection Waiver, an interior and exterior inspection is required when: • The subject property does not conform to the neighborhood

• There are apparent adverse physical deficiencies or environmental conditions

• The subject property is new or proposed construction. Escrows for postponed improvements are not permitted.

• Home inspection report or other information in the file indicates the presence of adverse condition and/or marketability factors

• Purchase transactions when the transaction is the result of the sale of an REO property • The last transaction on the property being purchased was a foreclosure

Property Inspection Alternative

A Property Inspection Alternative (PIA) is an LP recommendation that results in a waiver of both the property inspection and appraisal report.

To be eligible for a PIA, the transaction must meet the following requirements: • Property is owned in fee simple; leaseholds are not eligible.

• Property is fully completed and occupied as a residence prior to loan closing. • Property is not undergoing rehabilitation or renovation.

• An appraisal or inspection has not been performed.

• Underwriter is not aware of and could not have been aware of any conditions that would adversely affect the subject property’s market value, condition, or marketability.

• Borrower is not affiliated with or related in any way to the builder, developer, or property seller.

NOTE: If a Property Inspection Waiver, Property Inspection Alternative, 2075, or other reduced

appraisal requirement was obtained on a property prior to a disaster, a new full appraisal is required.

Appraisal Update

When performing an appraisal update, the appraiser is expected to research, verify and analyze current market data, and to perform at least an exterior-only inspection of the subject property.

The use of a substitute appraiser to perform the appraisal update is acceptable only in cases where the original appraiser is physically unable to perform the inspection.

• The substitute appraiser must review the original appraisal and express an opinion about whether the original appraiser's opinion of market value was reasonable on the date of the appraisal report. • The loan file must contain a note explaining why the original appraiser was not used.

The type of inspection required is dependent on the nature of the appraisal conditions or changes to the subject property.

If the appraisal is completed "as is", an interior inspection is not required unless there are any known changes to the subject property that would have an adverse effect on condition or marketability.

If the appraisal is subject to completion per plans and specifications, an interior and exterior inspection is required. Exterior and interior photographs are required.

If the appraisal is subject to repairs that affect safety, soundness or habitability, an interior and exterior inspection is required if repairs are required for the interior of the dwelling. Exterior and interior photographs are required. Otherwise, an exterior-only inspection with exterior photographs is required.

Section 109 Property and Appraisal

E Mortgage Management, LLC

This document is intended for use by E Mortgage Management, LLC and its business partners only. It may not be disseminated without express, written consent of E Mortgage Management, LLC. EMM Wholesale Lending is a division of E Mortgage Management, LLC.

© 2013 – E Mortgage Management, LLC NMLS #2926

Last Updated 9/3/2013 Page 103

Field Review Appraisal

The following forms are required when a Field Review appraisal is required by the Loan Program: • One-unit properties

- One-Unit Residential Appraisal Field Review Report (Fannie Mae Form 2000 or Freddie Mac

Form 1032)

- Original front and street photos of the subject property

- Photos of the comparable sales must be used for all review of one-unit residential appraisal

reports

• Two- to four-unit properties

- Two- to Four-Unit Residential Appraisal Field Review Report (Fannie Mae Form 2000A or

Freddie Mac Form 1072)

- Original front and street photos of the subject property

- Photos of the comparable sales must be used for all review of two- to four-unit residential

appraisal report

An analysis comparing the original appraisal and the review appraisal must be performed. The original appraiser must address any significant differences or discrepancies.