appraisaladam
Freshman Member
- Joined
- Mar 23, 2009
- Professional Status
- Certified Residential Appraiser
- State
- Wisconsin
Beginning in Q4/2023, these phrases and words, if found in a report submitted to the UCDP portal, will result in a fatal message that must be cleared. These messages will be delivered on appraisals containing the most commonly used prohibited, subjective or potentially biased words and phrases.
Words and phrases identified by FHLMC include:
The following are examples of unacceptable appraisal practices. Evidence of any of the practices listed in this section will be a breach of Seller’s warranty as to the professional quality of the appraisal.
Words and phrases identified by FHLMC include:
- Desirable/Undesirable
- Safe
- Well Kept
- Prestigious
- Students
- Gentrification
- Criminal/Crime
The following are examples of unacceptable appraisal practices. Evidence of any of the practices listed in this section will be a breach of Seller’s warranty as to the professional quality of the appraisal.
- Consideration of the race, color, religion, sex, sexual orientation, gender identity, age, marital status, disability, familial status, exercise of any federally protected civil right, receipt of income derived from any public assistance program, birthplaces of residents at the property or in the neighborhood, national origin of the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. (See also Section 1301.2 for equal opportunity compliance requirements.)
- Use of unsupported or subjective terms to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for analysis and contextual information
- Incorporating terminology or veiled language that may be code words that could indicate underlying bias that include, but are not limited to, “pride of ownership,” “crime-ridden area,” “desirable neighborhood or location” or “undesirable neighborhood or location,” “gentrified,” “preferred community,” “up and coming,” predominantly Hispanic or Black neighborhood, substantial amount of Black or Hispanic residents at the property, diverse school system, amenities specifically geared to a race, ethnic or religious group or using terms such as Millennials, Generation X or Baby Boomers
- Inclusion of inaccurate or incomplete data about the subject property, the neighborhood or any comparable sale used in the appraisal analysis
- Failure to report and/or consider any apparent factor that has an adverse effect on the value and/or marketability of the subject property
- Consideration of the age or location of a dwelling or the age of the neighborhood or census tract where the dwelling is located in a manner that has a discriminatory effect
- Reliance in the appraisal analysis on comparable sales that were not personally inspected by the appraiser. A personal inspection requires at least a visual inspection of the exterior of the comparable property.
- Reliance in any appraisal analysis on inappropriate comparable sales, or the failure to use comparable sales that are more similar to or nearer to the subject property without adequate explanation
- Use of comparable sales data provided by interested parties to the transaction without verification by a disinterested party
- The use of inordinate adjustments for differences between the subject property and the comparable sales that do not reflect the market’s reaction to such differences, or the failure to make proper adjustments when they are clearly necessary
- Development of value and/or marketability conclusions that are not supported by available market data
- The appraiser’s or supervisory appraiser’s breach of a certification or Statement of Assumptions and Limiting Conditions or comparable statements as found on any Freddie Mac approved appraisal report form or addendum.
LMAO
