5601.7: Overview of appraisal report forms (06/28/18)

Owned by Marsha Freeman
Nov 20, 2018
5 min read

© Freddie Mac Single-Family Seller Servicer Guide

This section lists Freddie Mac's appraisal report forms. See Section 5601.10 for information about appraisal exhibits and addenda. See Section 5601.13 for information related to obtaining subsequent appraisal reports and reconciling multiple opinions of value.

(a)  Form 70, Uniform Residential Appraisal Report

Form 70 is designed to report the results of an appraisal of a 1-unit property, including a unit in a PUD or a 1-unit property with an accessory unit. It may also be used for a Detached Condominium Unit if the appraiser includes information about the project and its condition. The form may not be used for an appraisal of a Manufactured Home or a unit in an attached Condominium Project. An interior and exterior inspection of the subject property is required. Appraisals reported on Form 70 with an effective date on or after September 1, 2011, must be completed using the Uniform Appraisal Dataset (UAD) in accordance with Appendix D, UAD Field-Specific Standardization Requirements, of the Uniform Appraisal Dataset Specification ("UAD Specification") when reporting an appraisal for a conventional Mortgage. (See Section 5601.14.)

(b)  Form 2055, Exterior-Only Inspection Residential Appraisal Report

Form 2055 is designed to report the results of an appraisal of a 1-unit property, including a unit in a PUD or a 1-unit property with an accessory unit. It may also be used for a Detached Condominium Unit if the appraiser includes information about the project and its condition. The form may not be used for an appraisal of a Manufactured Home or a unit in an attached Condominium Project. An exterior-only inspection of the subject property is required. Appraisals reported on Form 2055 with an effective date on or after September 1, 2011, must be completed using the UAD in accordance with Appendix D, UAD Field-Specific Standardization Requirements, of the UAD Specification ("Appendix D") when reporting an appraisal for a conventional Mortgage. (See Section 5601.14.)

Form 2055 upgrade requirements

  • The appraisal must be upgraded to a Form 70 when one or more of the following conditions exist:
  • The appraiser cannot obtain sufficient information about both the interior and exterior physical characteristics of the subject property from third-party data sources in order to develop an accurate and adequately supported appraisal
  • The appraiser cannot reconcile all significant discrepancies (e.g., size, condition, etc.) among available data sources
  • The appraiser's exterior-only inspection does not provide sufficient information to develop an accurate and adequately supported appraisal, including the inability to view the property improvements from the street
  • The subject property is new construction and has not yet been occupied
  • The subject property is undergoing renovation or rehabilitation
  • The data sources used to develop the appraisal (such as the sales contract for purchase transactions) indicate the presence of physical deficiencies or an adverse condition, or the appraiser observes apparent physical deficiencies or adverse property conditions during the exterior property inspection
  • The condition rating is C5 or C6 based on the UAD (refer to Section 5601.12(e))
  • The quality rating is Q6 based on the UAD (refer to Section 5601.12(e))

(c)  Form 70B, Manufactured Home Appraisal Report

Form 70B is designed to report an appraisal of a 1-unit Manufactured Home, including a Manufactured Home in a Planned Unit Development (PUD). A Manufactured Home located in a Condominium Project requires the appraiser to inspect the project and complete the project information section of the Form 465, Individual Condominium Unit Appraisal Report, and attach it as an addendum to Form 70B. Form 70B must be used for all Mortgages secured by a Manufactured Home. Freddie Mac does not require the UAD to be used for appraisals reported on Form 70B. However, Form 70B may be completed using the standards contained in the UAD Specification to the extent those standards are applicable.

(d)  Form 72, Small Residential Income Property Appraisal Report

Form 72 is designed to report the appraisal results for a 2- to 4-unit property. An interior and exterior inspection of the subject property is required. Freddie Mac does not require the UAD to be used for appraisals reported on Form 72. However, Form 72 may be completed using the standards contained in the UAD Specification to the extent those standards are applicable.

(e)  Form 465, Individual Condominium Unit Appraisal Report

Form 465 is designed to report the results of an appraisal of a 1-unit property in a Condominium Project, whether attached or detached. An interior and exterior inspection of the subject property is required. Appraisals reported on Form 465 with effective dates on or after September 1, 2011, must be completed using the UAD in accordance with Appendix D of the UAD Specification when reporting an appraisal for a conventional Mortgage. (See Section 5601.14.)

(f)  Form 466, Exterior-Only Inspection Individual Condominium Unit Appraisal Report

Form 466 is designed to report the results of an appraisal of a unit in a Condominium Project, whether attached or detached. An exterior-only inspection of the subject property is required. Appraisals reported on Form 466 with effective dates on or after September 1, 2011, must be completed using the UAD in accordance with Appendix D of the UAD Specification when reporting an appraisal for a conventional Mortgage. (See Section 5601.14.)

Form 466 upgrade requirements

  • The appraisal must be upgraded to a Form 465 when one or more of the following conditions exist:
  • The appraiser cannot obtain sufficient information about both the interior and exterior physical characteristics of the subject property from third-party data sources in order to develop an accurate and adequately supported appraisal
  • The appraiser cannot reconcile all significant discrepancies (e.g., size, condition, etc.) among available data sources
  • The appraiser's exterior-only inspection does not provide sufficient information to develop an accurate and adequately supported appraisal, including the inability to view the property improvements from the street
  • The subject property is new construction and has not yet been occupied
  • The subject property is undergoing renovation or rehabilitation
  • The data sources used to develop the appraisal (including the Purchase Contract) indicate the presence of physical deficiencies or an adverse condition, or the appraiser observes apparent physical deficiencies or adverse property conditions during the exterior property inspection
  • The condition rating is C5 or C6 based on the UAD (refer to Section 5601.12(e))
  • The quality rating is Q6 based on the UAD (refer to Section 5601.12(e))

(g)  Form 442, Appraisal Update and/or Completion Report

Form 442 is designed to report an update of an appraisal and/or to report a certification of completion for a 1- to 4-unit property. Refer to Section 5601.8 for information regarding appraisal updates and Section 5601.11 for information regarding completion reports.

(h)  Appraisal field review reports

One of the following report forms must be used when the Seller obtains an appraisal field review report:

Form 1032, One-Unit Residential Appraisal Field Review Report, for 1-unit properties

Form 1072, Two- to Four-Unit Residential Appraisal Field Review Report, for 2- to 4-unit properties

(i)  Appraisal desk review report

The Seller must use Form 1033, One-Unit Residential Appraisal Desk Review Report, when obtaining an appraisal desk review report for 1-unit properties.