Many of our clients have questions about which review product is right for them for different scenarios. Below we have detailed and summarized the specifics of these appraisal reports in the hopes that it will help our clients to make informed decisions about what is right for them.

One-Unit Residential Appraisal Field Review Report (FNMA 2000 / FHLMC 1032)
Two- to Four-Unit Residential Appraisal Field Review Report (FNMA 2000A / FHLMC 1072)

What is it?
A field review of an existing appraisal report by a licensed appraiser.

What is the purpose?
It is used by lenders to spot check appraisal quality.
It is generally used as part of a quality control program.

Why would I order it?
It provides an opinion of value.
It can be done with an interior or exterior inspection of the subject property.

Requirements:
All aspects of the report must be checked.
All comparable sales in the report must be inspected and photographed.
If the appraiser disagrees with the value in the report, 1-3 new comparables can be added.
The appraiser can also adjust the existing comparables differently, with explanation.
An enhanced version requires the appraiser to add two additional comparables whether or not
they agree with the value estimate.
All comparables, both those in the original report and any new ones added, must be mapped.

Residential Appraisal Review Form - Desk Review (2002)

What is it?

A desktop review of an existing appraisal report by a licensed appraiser without comparables.

What is the purpose?

This report is usually done prior to a loan being processed to question value.

Why would I order it?

It can be done with an interior or exterior inspection of the subject property.
Allows for the lender to check on the accuracy of a report and decide if a second appraisal
report is warranted.

Requirements:

It has a question and answer format (yes, no, N/A). There are a few lines for comments.

The report should contain a reviewer's estimate of value based on the information stated in the appraisal report if the appraiser deems the presented data to be assumed accurate. If the review appraiser is not able to state a reviewer's estimate of value based on the informationcontained in the original report, the review appraiser must state so, and specifically state what factors in the appraisal report preclude the reviewer from making an estimate of value.

An enhanced version must contain a Sales Grid Addendum that contains a minimum of two additional comparable sales provided by the reviewer, with adjustments made, and indicated values provided, for each comparable sale.

Residential Appraisal Review Short Form (2006)

What is it?

A desktop review of an existing appraisal report by a licensed appraiser on a short form, without comparables

What is the purpose?

These are done by lender for both pre-funding and post funding audits.

Requirements:

It can be done with an exterior inspection of the subject property.
Very brief question and answer format. Less detailed than a Desk Review 2002
Confirmation of data utilized in the report is and from a variety of publicly available sources, not generally to the standards of typical reports where Municipal and MLS data is used.
The report should contain reviewer's recommendation as to value based on information in the report.

If the appraiser is not able to make a recommendation of value based on the report the
appraiser must state what factors in the report preclude an estimate from being made.

In Summary:

The 2000/2000A is generally used by lenders on a regular spot check basis as part of an overall
plan of assuring appraisal quality. This form almost requires another appraisal be done. Fees are
generally highest for this form. When underwriters don't like the looks for an appraisal they will
often order this product. Rarely is one done where new comparables do not need to be added.
It is almost like preparing a second appraisal. It can be used instead of ordering another
appraisal. The two appraisers can be asked to resolve the differences in the reports.

The 2002 allows for the lender to check on the accuracy of a report and decide if a second
appraisal report is warranted. It is generally completed by local appraiser and all data included is
expected to be checked on the most reliable local data sources available. This report is usually
done prior to a loan being processed to question value. The lender can determine based on this
report whether to order a new appraisal

The 2006 is a newer form and is very brief. This form is useful because it provides a quick check
on a report under consideration or as a spot check for appraisal quality after the fact. Using
public databases, it is the least reliable of the three and does not have to be done by a local
appraiser.