Fannie Mae and Freddie Mac recently explained what is meant by the term “meets minimum building codes.” They assured appraisers that it isn’t their job to act as a home inspector and crawl under the house or up in the attic, chip away at drywall or probe framing to determine if the dwelling meets minimum building codes. However, the clarification issued by the agencies does state that it is the appraiser’s job to be “knowledgeable” of building codes in the subject and comparables market area.
This is a fair responsibility because if the appraiser does not understand basic residential construction methodology and building code requirements, it’s difficult to address issues related to the new definitions such as matters related to safety, soundness or structural integrity. Essentially, what Fannie and Freddie are saying is that while they don’t expect appraisers to determine if the dwelling meets code, they do expect us to be generally knowledgeable to the point where we know if something is obviously “not right” and should be further inspected by an expert, like a roof inspector or structural engineer, depending on the issue(s).
ACI is providing a new Webinar to address this issue and others. The webinar, Understanding the Nuances of the UAD Condition and Quality Ratings, provides information on the UAD condition and quality rating misunderstandings nuances. This webinar is provided by ACI at no cost to ACI clients.