What is an FNMA 2055 appraisal?

 

In some cases, underwriting guidelines require appraisal reports that do not include an interior inspection. When that happens, appraisers typically complete an FNMA 2055. These appraisals are better known as an exterior-only appraisal, and referred to in the industry as “drive-by appraisals.” While an exterior-only appraisal assignment doesn’t seem like it would be daunting, the truth is, these appraisals can often be even more challenging than traditional residential appraisals. As you can imagine, necessary items like the number of rooms, property conditions, and gross living area can be difficult to pin down when evaluating the property by only viewing the exterior of the property. However, knowing a little more about the development of FNMA 2055 appraisals will help you improve turn times by providing necessary information to the appraiser.

WHAT’S AN EXTRAORDINARY ASSUMPTION WITHIN AN FNMA 2055 APPRAISAL?

With an FNMA 2055 appraisal, many factors within the report will be treated as extraordinary assumptions. As a reminder, an extraordinary assumption is when an appraiser takes uncertain information as of the appraisal effective date and presumes it is fact. For example, if the exterior of a property is considered good, the appraiser typically will make an extraordinary assumption that the interior is in similar condition.

In other cases, an appraiser might be supplied with some of the interior information. Items like the bedroom or bathroom count, gross living area, site size, and parcel number or tax identification number can be divulged which makes an FNMA 2055 much easier to complete. An appraiser might also receive additional information like a redacted past appraisal, list of amenities, and/or a description of any recent significant renovations or upgrades that have been made to the property, too.

HOW CAN I HELP MY APPRAISERS BE MORE PREPARED FOR AN FNMA 2055 APPRAISAL?

If you find yourself in need of an exterior-only appraisal, dig-up as much information for your appraiser as you can. Providing this information early in the process to an appraiser who is engaged to complete an FNMA 2055 – Exterior Only appraisal will ensure that the appraiser has the most relevant, up-to-date data. Which will help him/her complete the most accurate appraisal in the most timely manner, resulting in an improved customer experience.

Looking for more answers to your burning appraisal questions? Don’t hesitate to reach out. We’re happy to answer any questions you might have, or point you in the right direction.