For appraisals that are made subject to completion per plans and specifications, or to repairs, alterations or conditions, a final inspection of the property is required and a completion report must be provided that documents that the property has been completed. The completion report must meet the requirements of this section and must be retained in the Mortgage file.
(A) For appraisals that are made subject to completion per plans and specifications, or are subject to repairs or alterations:
- An appraiser must perform the final inspection of the property and provide a completion report documenting that the property has been completed. Freddie Mac will accept a completion report performed by an unlicensed or trainee (or similar classification) appraiser if a supervisory appraiser signs the completion report
- The completion report must:
- Include photographs of the completed items
- Be dated before the Settlement Date unless requirements for incomplete improvements have been met. (See Section 5601.2(b) for more information.)
- Be retained in the Mortgage file
(B) For appraisals that are made subject to an inspection of the property, a licensed professional or another person trained in the particular field of concern (e.g., structural engineer, plumber, pest inspector, etc.) must perform the inspection of the property.The inspector must provide either:
- A report stating that a repair(s) is not required, or
- A signed report or invoice stating that the repair has been completed and the issue corrected. The report or invoice must provide the professional's license number when available
The report or invoice must be:
- Dated before the Settlement Date
- Retained in the Mortgage file
| Related Guide Bulletins | Issue Date |
|---|---|
| Bulletin 2017-20 | September 14, 2017 |
Additional Resource: https://www.allregs.com/tpl/Viewform.aspx?formid=00051759&formtype=agency#page=554