Appraisal changes raise key questions for brokers, NAMB president says
Michael Farrell (pictured top), president of the National Association of Mortgage Brokers (NAMB), said brokers need to know which format each lender uses. Farrell holds a seat on the Appraisal Foundation Advisory Council.
“From a broker perspective and an independent originator perspective, you need to be cognizant of which lenders you’re taking the client through and what their business decision is, and are they using 3.6 or 2.6?” Farrell told Mortgage Professional America.
What the exception changes
Under the agencies’ temporary policy, lenders granted relief can keep submitting legacy UAD 2.6 appraisals through May 19, 2027, while the Nov. 2 mandate for UAD 3.6 stays in place. Starting March 1, loans backed by those older reports lose collateral representation and warranty relief for value, and the agencies’ collateral review tools stop returning standard risk scores.
“It has put a tourniquet on what could have been a major roadblock,” Farrell said. “Again, the extension is welcome. But with the extension comes the awareness of now, you’ve got options. It’s not a hard line for using 3.6 as of November 2nd. It’s now, you can use 3.6 or 2.6 if you got the exception approved by Fannie.”
The exception is granted to lenders, so a broker’s wholesale partners can end up on different formats. A client’s costs and timeline then depend on which partner handles the loan.
