Desktop Appraisals
Leveraging the wealth of data, the power of advanced analytics, and the speed of technology, appraisers can perform desktop appraisals without physically inspecting the property.1
Desktop appraisal benefits
- Supports digital transformation in the loan origination process.
- Cost- and time-efficient process.
- May reduce confirmation bias.
- Mitigates appraiser capacity constraints.
- Rigorous testing shows similar risk performance compared to traditional appraisals.
- Improves disaster/pandemic response time.
Appraiser and lender responsibilities
Lender receives message from Desktop Underwriter® (DU®) indicating the casefile is eligible for a desktop appraisal.
Lender orders desktop appraisal.
Lender and borrower always have the option to order any of the eligible valuation options detailed in DU messages.
Appraiser receives assignment for desktop appraisal reported on Form 1004 Desktop.
Appraiser conducts analysis and develops opinion of value.
- No physical inspection of the subject property; data may be obtained by various parties (buyer/seller agent, homeowner, builder, appraiser files, etc.) and through secondary data sources (public records, MLS, internet, etc.).
- Use Form 1004 Desktop.
- Must include floor plan with interior walls and exterior dimensions as well as meet the photo requirements.
- The appraiser must have sufficient information to develop a credible opinion or deliver a reliable report.
- Data provided by parties with a financial interest in the sale, or financing of the subject property must be verified by a disinterested source.
Appraiser submits report.
Lender reviews the appraisal to confirm that it:
- Is reported on Form 1004 Desktop.
- Includes a floor plan.
- Meets all other requirements.
Lender submits appraisal to the Uniform Collateral Data Portal®. The appraisal will be scored in Collateral Underwriter®, and lender will receive rep and warrant relief if the risk score is 2.5 or less. Lender delivers the loan through Loan Delivery. Choose “DesktopAppraisal” as the appraisal method type in loan delivery data.
1This fact sheet provides a summary for reference only. All criteria are subject to the formal terms and conditions of the Selling Guide.
