5601.15: Electronic transmission of appraisal reports (03/02/16)

© Freddie Mac Single-Family Seller Servicer Guide

The Seller may use and maintain an Electronic Record of the appraisal report as an original Mortgage file document if all of the following conditions are met:

• The electronic appraisal report otherwise complies with the applicable requirements of Chapter 5601
• The appraiser electronically transmits the electronic appraisal report directly to the Seller or any third party specifically authorized by the Seller, as applicable
• The electronically transmitted photographs and any addenda are clear and otherwise satisfy the requirements of Section 5601.10(a) and Section 5601.10(e)
• The Seller represents and warrants that the appraiser's Electronic Signature, and a supervisory appraiser's signature if applicable, are attached to or logically associated with the electronic appraisal report in accordance with the federal Electronic Signatures in Global and National Commerce Act ("E-SIGN") and other applicable State and federal laws
• The Seller represents and warrants that the electronic appraisal report is as effective, enforceable and valid as a paper original of the appraisal report duly executed by the appraiser, and the supervisory appraiser if applicable

In addition to the unacceptable appraisal practices set forth in Section 5601.4, the following are unacceptable electronic appraisal report practices and will constitute a breach of the Seller's warranty of the professional quality of the appraisal report:

• Failure of the appraiser to take reasonable precautions to protect his or her electronic signature from identity and signature theft, including granting a trainee, administrative personnel or other third party permission to use the appraiser's or supervisory appraiser's electronic signature
• Failure to maintain proper security controls to protect against alteration of the appraisal report or data used in connection with preparing the report by someone other than the appraiser, or supervisory appraiser if applicable, ultimately responsible for the report
• Failure to securely store the electronic appraisal report, including all original photographs, maps and supporting documents, as originally reported by the appraiser

The Seller retains liability for the authenticity and accuracy of the electronic appraisal report, including all original photographs, maps and supporting documents. In the event the Seller is concerned about the accuracy or reliability of the electronic appraisal report or photographs, maps and supporting documents, the Seller shall immediately obtain a paper duplicate of the electronic appraisal report signed with pen and ink by the appraiser, and the supervisory appraiser if applicable, and maintain the paper duplicate of the electronic appraisal report in the Mortgage file. The Seller shall provide the electronic or original appraisal report and photographs, as applicable, to Freddie Mac at any time upon Freddie Mac's request. After receiving the paper duplicate of the original appraisal report signed with pen and ink by the appraiser, and the supervisory appraiser if applicable, the Seller may maintain a copy of the paper duplicate of the original appraisal report and photographs reproduced from the original of such documents, in accordance with the requirements of Section 3302.2. The Seller shall provide Freddie Mac with a copy of the original appraisal report and photographs upon Freddie Mac's request.

The Seller represents and warrants that any appraisal report, including photographs received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record, is a copy of the original appraisal report, including photographs, that was signed by the appraiser and a supervisory appraiser if applicable, and that it complies with applicable State and federal laws and regulations. The Seller agrees that the appraisal report and photographs received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record are subject to the Seller's representations, warranties, covenants, agreements and requirements contained in Chapter 1401.

In the event the Seller becomes aware of the unauthorized or improper use of the appraiser's signature and a supervisory appraiser's signature if applicable, in connection with any electronic appraisal report, including photographs, or if the Seller suspects unauthorized alteration of any appraisal report, the Seller must notify Freddie Mac immediately.