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Understanding the New Appraisal Guidelines

WednesdayApril 6, 202210:00 am - 11:30 am

Understanding the New Appraisal Guidelines

This is a livestreamed seminar. You will recieve a link to the session the day before the seminar.

Join real estate broker and appraiser, Melanie McLane, on April 6 to discuss how the changes for Fannie Mae loans will impact your ability to prepare an accurate CMA and provide good advice to your clients under these new rules.

Read more on the potential pitfalls Realtors may encounter under these new guidelines from PAR’s Kim Shindle below:

Appraisal changes for measuring, calculating and reporting gross living area for Fannie Mae loans are going into effect April 1, 2022, according to an announcement last month.

Appraisers will be required to use American National Standards Institute – or ANSI – Measuring Standard for measuring, calculating and reporting gross living area and non-GLA areas of properties requiring interior and exterior inspections on loans sold to Fannie Mae.

According to Fannie Mae, “This policy update will standardize the method used to measure, calculate and report gross living area and non-GLA areas of subject properties. Valuations of residential property correlate strongly with GLA, yet to date there is substantial inconsistency in how appraisers determine it. Fannie Mae’s adoption of the ANSI standard for measuring, calculating and reporting square footage: Creates alignment across market participants. Provides a professional and defensible method for the appraiser. Allows transparent and repeatable results for consumers of appraisal reports.”

Previously, Fannie Mae’s Selling Guide has not required the use of a specific measurement standard. This change is being made to standardize the measuring method, however, it could cause problems in areas with older homes.

Michelle Czekalski Bradley, a Pennsylvania certified general appraiser and USPAP instructor, said, “This has the potential to cause some difficulty, for Pennsylvania in particular, because we have a rather old housing stock. This won’t be an issue where new homes are the predominant market, but areas like Pittsburgh, Harrisburg and Philadelphia, for example, have older homes that are going to have potential issues.”

PAR Staff Attorney Brian Carter added, “Given that Pennsylvania has the fourth oldest average age of homes nationally, with 58% built before 1970 and the median age being 1962, this new rule could be disruptive on that fact alone.”

Melanie McLane Instructor Headshot

Instructor:

Melanie McLane

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