Selling Guide

Published December 4, 2019

D1-3-04: Lender Post-Closing Quality Control Review of Appraisers and Appraisals (04/03/2019)

This topic contains information on the lender's post-closing QC review of appraisers and appraisals, including:


The lender must continually evaluate the quality of its appraisals through the normal underwriting review of all appraisal reports, and by utilizing field reviews and desk reviews as part of the QC process. (See B4-1, Appraisal Requirements, for additional information regarding appraisal policies, guidelines, and requirements.) The lender should also utilize third-party tools and information (such as analytical tools, public record databases, and automated valuation models) to help identify areas of inaccuracy and/or inconsistencies that may be indicators of appraisal deficiencies.

Oversight of Appraisers

The lender’s QC plan must include requirements for monitoring and assessing the overall quality of work performed by an appraiser, including a process for loan-level QC reviews of origination appraisals. Fannie Mae holds the lender fully accountable for the quality of the QC appraisal reviews regardless of whether the work is performed by the lender itself or by an outsourced QC service provider.

The lender must also develop and maintain a documented process to monitor the appraisers it uses. The process, at a minimum, must include an annual review of an appraiser’s state licensing or certification status and a procedure for suspending or terminating business with individual appraisers. Additionally, the lender must have a procedure for referring appraisers to the applicable state appraiser licensing and regulatory board.

See B4-1.3-12, Quality Assurance, for information concerning Fannie Mae’s right to refuse to accept appraisals prepared by specific appraisers.

Verification of Appraisals by Field Review

The lender must obtain an appraisal field review to evaluate the appraisal for 10% of the mortgage loans selected for QC review in the random sample. The calculation of the 10% field review requirement need only be based on loans that have an appraisal.

When identifying the 10% sample on which to conduct a field review, the lender may use a random or targeted sampling approach that allows for higher-risk transactions (or appraisals) to be selected. The field review must be prepared by an appropriately licensed or certified appraiser who is not affiliated with the original appraiser or appraisal firm.

Appraisal Field Review Forms

Fannie Mae requires the use of the following forms when completing a field review:

  • One-Unit Residential Appraisal Field Review Report (Form 2000)

  • Two- to Four-Unit Residential Appraisal Field Review Report (Form 2000A)

Verification of Appraisals by Desk Review

The lender must complete a desk review to evaluate the appraisal for the remaining 90% of mortgage loans the lender has selected for QC review as part of its random sample. It is acceptable for the desk review to be completed by an individual who is not a licensed or certified appraiser; however, the appraisal reviewer must be competent in the application of basic appraisal theory for

  • assessing market risk;

  • determining if a property meets eligibility requirements, including the LTV, CLTV, and HCLTV ratios; and

  • prescribing corrective actions in the underwriting process when defects are identified.

Fannie Mae permits lenders to use automated valuation models as a tool in the completion of the valuation assessment.


The lender must review the results of the field review or desk review to determine whether any defects are identified. If the lender determines that the mortgage loan was not eligible as delivered, the lender must advise Fannie Mae of these findings using the self-report functionality in Loan Quality Connect. For additional information, see D1-3-06, Lender Post-Closing Quality Control Reporting, Record Retention, and Audit.

Example: The lender delivered a two-unit property loan to Fannie Mae and, after reviewing the appraisal, the lender determines that the property is a mixed-use property. Because mixed-use properties are limited to one-unit dwellings, the loan is ineligible as delivered to Fannie Mae and the lender must self-report the loan.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.

Announcements Issue Date
Announcement SEL-2019-03 April 03, 2019
Announcement SEL-2015–13 December 15, 2015
Announcement SEL-2014–10 July 29, 2014
Announcement SEL-2013–05 July 30, 2013
Announcement SEL-2010–16 December 1, 2010
Announcement SEL-2010–03 March 29, 2010