New 1004 Hybrid and 1004 Desktop appraisal forms FAQ
This document answers some of the most frequently asked questions we hear about the new 1004 Hybrid/70H and 1004 Desktop/70D appraisal forms.
Document 2009 | Last updated: 07/24/2020 MJY
Fannie Mae and Freddie Mac (the government‑sponsored enterprises [GSEs]) have been tasked by the Federal Housing Finance Agency (FHFA) with exploring appraisal modernization. One common theme regularly mentioned in the appraisal industry is the concept of alternative appraisal processes such as so‑called hybrids and desktops.
Today's standard appraisal form (Uniform Residential Appraisal Report [URAR]) does not accommodate these types of alternative processes. So, with FHFA's permission, the GSEs have created and aligned on a modified set of Scope of Work, Limiting Conditions, and Certifications that allow Fannie Mae and Freddie Mac to separately explore alternative appraisal processes.
On July 28, 2020, a new TOTAL update will be released and two new forms will be available alongside the existing 1004 form — which is now referred to as a Traditional appraisal. The new forms will be available in Titan Reports on July 29, 2020. The two new forms include:
- Hybrid [Fannie Mae 1004 Hybrid / Freddie Mac 70H]
- Desktop [Fannie Mae 1004 Desktop / Freddie Mac 70D]
The traditional 1004/70 form will remain unchanged, and you will continue to use the traditional form in most cases. Continue reading below to view frequently asked questions regarding the new Hybrid and Desktop 1004 appraisal forms.
Does this apply to me?
This only applies to appraisers participating with a lender in a pilot program with the GSEs. Wait for an order that specifies 1004/70D DESKTOP or 1004/70H HYBRID before using either of the new forms.
What are the new forms? What are the differences between a Hybrid, Desktop, and Traditional appraisal?
There are two new forms that are available: 1004 Hybrid/70H and 1004 Desktop/70D. The new forms are available alongside the existing 1004 form which is now referred to as Traditional. The differences between the forms essentially amount to a modified set of Scope of Work, Limiting Conditions, and Certifications with the new forms.
Click the panel below to expand it and view a description, the data collection method, and certification for each type of form.
Click here for details on Hybrid, Desktop, and Traditional forms
Traditional:
Fannie Mae 1004
Freddie Mac 70An appraisal assignment for which the scope of work includes an interior and exterior personal, onsite inspection of the subject property completed by the appraiser who signs the appraisal report, and the effective date of the appraisal is the date of inspectionData Collection MethodPhysical inspection of the interior and exterior of subject property by the appraiserCertificationAppraiser performed a complete visual inspection of the interior and exterior areas of the subject propertyHybrid:
Fannie Mae 1004 Hybrid
Freddie Mac 70HAn appraisal assignment consisting of a desktop appraisal for which the scope of work includes reviewing a recent interior/exterior property data reportData Collection MethodPhysical inspection of the interior and exterior of subject property by a third‑party inspector or an appraiser
Virtual inspection of the interior and exterior of subject property by a third party or an appraiser using tools such as PropertyAssist, Skype, FaceTime®, or others to allow remote viewingCertificationAppraiser may not have performed a personal inspection of the subject property; relying on subject property information from property data reportDesktop:
Fannie Mae 1004 Desktop
Freddie Mac 70DAn appraisal assignment for which the scope of work does not include field work by the appraiser and does not include reviewing a recent interior/exterior property data reportData Collection MethodNo physical inspection — Appraiser uses prior URAR or hybrid, MLS, public record data, or other sourcesCertificationAppraiser did not perform a personal visual inspection of the subject property at the time of the desktop report
Why is there a new form?
The current URAR 1004 form does not accommodate alternative processes. So in an effort to explore appraisal modernization, the GSEs have created and aligned on a modified set of Scope of Work, Limiting Conditions, and Certifications with the new forms.
What type of appraisals does this affect? Are other forms affected?
This change initially applies to the URAR (Fannie Mae Form 1004 / Freddie Mac Form 70/70H/70D). At some point, it may be extended to the Individual Condominium Unit Appraisal Report (Fannie Mae Form 1073 / Freddie Mac Form 465/465H/465D) and/or to other appraisal forms.
Are these new forms related to the COVID‑19 flexibilities?
No. The new forms are separate from the temporary COVID-19 flexibilities. For more information on those, see Fannie Mae LL‑2020‑04 or Freddie Mac Bulletin 2020‑05.
How are the new forms different from the traditional 1004 form?
The new forms include a modified set of Scope of Work, Limiting Conditions, and Certifications that allow for alternative, modernized appraisal processes.
Click the arrows on the slides below to view differences between the traditional 1004 form and the new Hybrid and Dektop forms:
When will the new forms be available?
The new Hybrid and Desktop appraisal forms will be available alongside the existing Traditional 1004 URAR appraisal form after you download TOTAL's July 28, 2020 update. The new forms will be available in Titan Reports on July 29, 2020.
Which form should I use?
In most cases, continue using the 1004 URAR form you've been using — as these changes only apply to appraisers participating with a lender in a pilot program with the GSEs.
You'll only use the new forms when you receive an order that specifically requests either 1004/70D DESKTOP or 1004/70H HYBRID.
Where do I find the new forms?
The new forms will be available alongside all of your other forms in the Contents PowerView in TOTAL. You can also use the new form titles and form numbers — 1004 Hybrid/70H, or 1004 Desktop/70D — to search for them and quickly add them to a report.
Where can I find more information about the pilot program?
For more information about the pilot program, click here to view Fannie Mae's announcement on their website.
