DATE: April 6, 2020 REMN Wholesale has modified our policy regarding appraisal inspection report types due to new guidance from VA. In response to COVID-19, reduced documentation may be permitted in certain circumstances. The below guidance provided is effective immediately for loans closing after March 27, 2020.
PURCHASE AND CASH-OUT TRANSACTIONS
• Traditional appraisal – OR
• Exterior Only – OR
• Desktop – Limited to 2020 Freddie Mac Conforming Limit for 1 unit in the county where the property is located
• **Special Note** a traditional appraisal is required for vacant properties UNLESS ‘shelter in place’ is mandated in the property’s area. In that instance an exterior or desktop appraisal is permitted
RECONSIDERATION OF VALUE
• Purchase – Limited to no greater than 5% of the original value
• Cash out – Not permitted until further notice
• Suspended until further notice. Any loans currently in the pipeline will be unable to proceed
• In lieu of a 1004D the following may be used: receipts, written and/or verbal confirmation from the licensed contractor
• Lead Based paint repairs require an inspection by the appraiser
• REMN Wholesale will not allow a repair escrow holdback
The link to VA Circular 26-20-11 can be found here.
If you have additional questions please contact your Account Executive.