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Here's what a desktop appraisal is: we're talking about an appraisal where the appraiser does *not* physically inspect the subject property or the comparable sales in person. Instead, the appraiser gathers information from third-party data sources—things like photos, floor plans, virtual inspections, and machine-generated information—and verifies that data through disinterested sources to make sure it's accurate and reliable. The appraiser must determine the property's features, quality, and condition based on this remote data, and cannot use workarounds like "subject to verification" of the property's actual condition. When this type of appraisal is completed, it gets reported as "Desktop Appraisal" on the property valuation method field of the appraisal form, with the effective date being the date the appraiser develops the opinion of value (not an inspection date). Straight from Fannie Mae Selling Guide, UAD 3.6/URAR, and 2024 USPAP — nothing added.

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© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.

© Copyright Notice: © The Appraisal Foundation. Excerpts shown for research and reference only (fair use, 17 U.S.C. § 107) — every certified appraiser is required to have their own current copy under USPAP's own Record Keeping/Competency provisions; this tool helps you find the exact passage, it doesn't replace owning it. Full current edition available for purchase at appraisalfoundation.org. Reproduction restricted per The Appraisal Foundation's copyright policy.

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#1 Fannie Mae Selling Guide Page 553

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Announcements Issue Date Announcement SEL-2019-06 July 03, 2019 B4-1.2-02, Desktop Appraisals (12/10/2025) Introduction This topic contains information on desktop appraisals,…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 553 · View at official source (selling-guide.fanniemae.com) →

Announcements Issue Date Announcement SEL-2019-06 July 03, 2019 B4-1.2-02, Desktop Appraisals (12/10/2025) Introduction This topic contains information on desktop appraisals, including: Overview Completing the Form 1004 Desktop Eligible Transactions Ineligible Transactions Representations and Warranties Uniform Appraisal Dataset (UAD) 3.6 Policy Overview For certain loan casefiles, DU offers desktop appraisals. A desktop appraisal reported on the Uniform Residential Appraisal Report (Desktop) (Form 1004 Desktop) is permitted for certain transactions. The minimum scope of work for Form 1004 Desktop does not include a current inspection of the subject property or comparable sales by the appraiser; the appraiser relies on data obtained from alternative methods or sources to identify property characteristics and condition. Completing the Form 1004 Desktop Subject property information may be obtained from one or more data sources. The appraiser can accept data, photos, floor plans, and other information from a party who has a financial interest in the sale or financing of the property if the appraiser verifies such data from a disinterested source. The appraiser must determine if the information is accurate and reliable to produce a credible report, which includes the features, quality, and condition of the subject property. Virtual inspection methods (including digital photos or videos) or other technological solutions (such as a machine-generated floor plan) can augment the data and imagery used for a desktop appraisal. Information provided by the homeowner, potential borrower, or a third party can be used to develop the description of the interior and exterior of the improvements. Extraordinary assumption(s) or appraisals made "subject to" verification of the subject property's condition, quality, or physical characteristics are not permitted. The lender remains responsible for the description of the property, and the accuracy and of all data on the

#2 Fannie Mae Selling Guide Page 554

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appraisal that pertains to the property. This includes the property's condition and quality ratings. The lender is also responsible for ensuring the property meets the property…

Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 554 · View at official source (selling-guide.fanniemae.com) →

appraisal that pertains to the property. This includes the property's condition and quality ratings. The lender is also responsible for ensuring the property meets the property eligibility requirements in this Selling Guide. Lastly, the lender remains responsible for any life-of-loan representations and warranties that may apply to the property or the appraisal. Exhibits: Form 1004 Desktop requires the same exhibits as traditional appraisals, plus a floor plan. The Square Footage-Method for Calculating: ANSI Z765-2021 standard is not required for desktop appraisals but encouraged when feasible. See B4-1.2-01, Appraisal Report Forms and Exhibits for additional information. Entry of Appraisal Assignment Type: The appraiser must provide the Appraisal Assignment Type and supporting details (located in the Additional Comments section of the appraisal report) as shown in the following table. Field Labels Required Entry Appraisal Assignment Type "DesktopAppraisal" Subject Property Data Collection Method "Other" Subject Property Data Collection Date Null Subject Property Data Workforce Null DU Messaging: For loan casefiles that are eligible for a desktop appraisal option, DU will issue a message informing the lender they can choose to obtain an appraisal reported on Form 1004 Desktop. DU will also issue messages for other appraisal options. The lender may select from any of the options presented, which may include a desktop appraisal, hybrid appraisal, or traditional appraisal. Eligible Transactions To be eligible for a desktop appraisal, transactions must meet the following criteria: one-unit property (including those with an ADU and units in a PUD), principal residence, purchase transaction (including new construction), LTV ratio less than or equal to 90%, and DU loan casefile that receives an Approve/Eligible recommendation. Ineligible Transactions The following transactions are not eligible for a desktop appraisal: two- to four-unit properties; condo and co-op units;

#3 UAD 3.6 / URAR (FNMA) Page 34

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Assignment Information Appendix F-1: URAR Reference Guide Page 34 of 375 Version 1.3 Assignment Information: Borrower, Seller, and Current Owner of Public Record Report Field ID…

UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 34 · View at official source (fanniemae.com/uad) →

Assignment Information Appendix F-1: URAR Reference Guide Page 34 of 375 Version 1.3 Assignment Information: Borrower, Seller, and Current Owner of Public Record Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance 2.002 Seller Name If applicable Free-form Repeatable Notes: • The seller can be a person or a legal entity. • If there is no seller (such as refinance transactions), leave blank. 2.003 Current Owner of Public Record Always required Free-form Repeatable Note: The current owner can be a person or a legal entity. Property Valuation Method Reference published guidelines by the GSEs, government agencies, or other identified secondary market participants for specific guidance. Assignment Information: Property Valuation Method Report Field ID Report Label When to Include Allowable Answers / Format Definition / Additional Guidance 2.004 Property Valuation Method Always required Choose an allowable answer from table (Property Valuation Method) The method of property valuation, based on appraiser’s scope of work performed. • Traditional Appraisal • Hybrid Appraisal • Desktop Appraisal • Exterior Appraisal Note: Regardless of what was ordered, Property Valuation Method represents what was completed. Property Valuation Method (Choose one) Allowable Answer Definition / Additional Guidance Traditional Appraisal An appraisal assignment for which the scope of work includes an interior and exterior onsite inspection of the subject property completed by the appraiser who signs the appraisal report. The Effective Date of Appraisal (26.011) is the date of inspection. Hybrid Appraisal An appraisal assignment for which the scope of work includes using a recent collection of property data in lieu of the appraiser performing an onsite inspection. The Effective Date of Appraisal (26.011) is the date the appraiser develops the opinion of value. Note: If this answer is selected, Property Data Report Used (2.005) must be Yes, and the Property Data Report subsection (2.053-2.060) displays. The collection of property data must comply with the Uniform Property Dataset (UPD), as specified in Uniform Property Dataset - Freddie Mac Single-Family and Uniform Property Dataset | Fannie Mae. Desktop Appraisal An appraisal assignment for which the scope of work includes using third party data sources, other than a recent collection of property data, in lieu of an appraiser performing an onsite inspection. The Effective Date of Appraisal (26.011) is the date the appraiser develops the opinion of value. Exterior Appraisal An appraisal assignment for which the scope of work includes an inspection of the

#4 2024 USPAP Page 91

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appraiser that concludes what data is needed for the assignment. 88 A Personal Inspection as Part of the Scope of Work 89 Appraisers are often asked to appraise a property which…

2024 USPAP · 2024_USPAP_text.txt · Page 91 · View at official source (The Appraisal Foundation — USPAP) →

appraiser that concludes what data is needed for the assignment. 88 A Personal Inspection as Part of the Scope of Work 89 Appraisers are often asked to appraise a property which they have previously inspected. If an appraiser has driven 90 past a property many times prior to that property becoming the subject of an assignment, the appraiser has not yet 91 Inspected the property as a part of his or her scope of work for the assignment. 92 The definition of PERSONAL INSPECTION is distinguished as an inspection the appraiser performs “as part of the scope 93, of work" for an appraisal or an appraisal review assignment. In these situations, prior inspections occurred before the 9% agreement to perform an assignment and thus are not part of the appraiser's scope of work. Itis not unusual foran 95 appraiser to have, for example, seen a property in-person before they agree to perform an appraisal assignment. 96 Minimum Extent of a Personal Inspection 7 An inspection is not required by USPAP for appraisal or appraisal review assignments, but one is often conducted. 98 The appraiser's personal inspection, and the extent of that inspection, is an aspect of the scope of work and may 99 be required as an assignment condition and/or be necessary for the intended use of the assignment results. The 100 extent of any personal inspection can be quite comprehensive, or very limited in scope. Regardless of the level of 101 detail of a personal inspection, it is always possible to perform a personal inspection that is even more thorough. 102 Itis the appraiser's responsibility to determine the appropriate scope of work, including the extent of a personal 103, inspection (when one is performed, required or necessary to produce credible assignment results given the 104 Intended use of the assignment results). 105 There are many circumstances that influence the appraiser's personal inspection. In some assignments, the client 106 may request that the appraiser perform an exterior-only inspection from the street or perform no inspection ofthe 107, subject property (Le., a “desktop appraisal”). There are situations where inspection of the subject property isnot 108 possible; for example, if the improvements have been destroyed, removed, or not yet built. In some cases, the 109 appraiser is denied access to the property for legal, personal safety, or other reasons. In such cases, the appraiser 110 must use other means to gather information

#5 2024 USPAP Page 95

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to disclose regarding the inspection completed by the third-party inspector? 2 The property inspection report is information; therefore, you can use the information to conclude…

2024 USPAP · 2024_USPAP_text.txt · Page 95 · View at official source (The Appraisal Foundation — USPAP) →

to disclose regarding the inspection completed by the third-party inspector? 2 The property inspection report is information; therefore, you can use the information to conclude the 173 characteristics of the property that are relevant to the assignment or decide to research additional 1” information. An appraiser must have sufficient information to develop their own opinions and conclusions. 175 Therefore, in cases when the appraiser relies upon a third-party Inspector's report, it may be necessary 176 to obtain additional information and/or examine other documents in order to understand the property 7 characteristics relevant to the assignment. Since the inspection was not performed by you, itwasnota 178 part of the scope of work completed as a part of the appraisal assignment. 179 3. Ihave been contacted by a property owner who Is being transferred by their employer to another city. The 180 owner indicated that while they might want a “detailed appraisal” later, right now they only need a rough idea 1s! of the value of the residence to begin negotiations related to the relocation. The owner has asked me to 182 perform a “desktop” appraisal (i... an appraisal with no inspection of the property). | believe that, given this, 183 Intended use, credible assignment results can be developed without a personal inspection. Is this permitted is under USPAP? 185 Yes, this is permitted if sufficient information is available to conclude the characteristics of the property 186 that are relevant to the assignment. Such information could be obtained from public records, previous 187 listings of the property for sale, appraiser's files, etc. 188 While such an issue would likely not exist in this example, If, in a similar scenario the use of an extraordinary 189 assumption about the condition of the property is necessary, then one must comply with the requirements forthe 190, use of an extraordinary assumption. 1 USPAP Guidance: Advisory Opinions co 3 © The Appraisal Foundation sac --- Page 102 --- 1. This communication by the Appraisal Standards Board (ASB) does not establish new standards or interpret 2. existing standards. Advisory Opinions are issued to illustrate the applicability of appraisal standards in specific 2 situations and to offer advice from the ASB for the resolution of appraisal issues and problems. SUBJECT: Update of a Prior Appraisal 5 APPLICATION: Real Property, Personal Property, Intanglble Property 6 THE ISSUE: 7 Once an appraisal of a property has been completed, there are

#6 UAD 3.6 / URAR (FNMA) Page 6

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paradigm WHICH FORMS WILL BE AFFECTED? Uniform Residential Appraisal Report (1004, 70) Universal Residential Appraisal Report Desktop (1004 Desktop, 70D) Uniform Residential…

UAD 3.6 / URAR (FNMA) · 2025-UAD-eBook-final.pdf · Page 6 · View at official source (fanniemae.com/uad) →

paradigm WHICH FORMS WILL BE AFFECTED? Uniform Residential Appraisal Report (1004, 70) Universal Residential Appraisal Report Desktop (1004 Desktop, 70D) Uniform Residential Appraisal Report Hybrid (1004 Hybrid, 70H) Individual Condo Unit Appraisal Report (1073, 465) Individual Condo Unit Appraisal Report Desktop (1073 Desktop, 465D) Individual Condo Unit Appraisal Report Hybrid (1073 Hybrid, 465H) Exterior-Only Inspection Individual Condominium Unit Appraisal Report (1075, 466) Exterior-Only Inspection Residential Appraisal Report (2055) Manufactured Home Appraisal Report (1004C, 70B) Individual Cooperative Interest Appraisal Report (2090) Exterior-Only Individual Cooperative Interest Appraisal Report (2096) Small Residential Income Property Appraisal Report (1025, 72) Single Family Comparable Rent Schedule (1007, 100) *This is based on currently available information and may change in the future. CLOSING MESSAGE While we understand that change can be a challenge, we also know that this new methodology has the power to make the work you already put into your reports more impactful, more efficient and more robust against unnecessary revision requests. All users will get plenty of time to explore and learn about this new workflow before it becomes mandatory (refer to the timeline above). Throughout this process we hope you will utilize the resources we’ve mentioned here and share any ideas for improvement you might have on feedback.alamode.com. UAD 3.6 | Preparing for the new paradigm

#7 VA Lenders Handbook (Pamphlet 26-7) Page 383

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Appraisal Report 11-5 3. Appraisal Report Contents Change Date February 22, 2019 • This Chapter has been revised in its entirety. c. Appraisal Report Contents 1. Invoice For…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 383 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Appraisal Report 11-5 3. Appraisal Report Contents Change Date February 22, 2019 • This Chapter has been revised in its entirety. c. Appraisal Report Contents 1. Invoice For consistency, the first page of PDF file uploaded into WebLGY 2. Appraisal Form • Lender’s name and “Department of Veterans Affairs” must be provided in the Lender/Client field on the appraisal report form • The VA assigned fee appraiser’s signature must be provided in the signature block with the fee appraiser’s VA ID in the “other” block, just below state certification and license information Appraisal forms accepted by VA • Fannie Mae Form 1004, Uniform Residential Appraisal Report • Fannie Mae Form 2055, Exterior-Only Inspection Residential Appraisal Report, for liquidation appraisals only if interior access was not provided • Fannie Mae Form 1004C, Manufactured Home Appraisal Report, • Fannie Mae Form 1073, Individual Condominium Unit Appraisal Report • Fannie Mae Form 1075, Exterior-Only Inspection Individual Condominium Unit Appraisal Report, for liquidation appraisals only if interior access was not provided • Fannie Mae Form 1025, Small Residential Income Property Appraisal Report, • Commercially available vacant land form, for liquidation appraisals if the improvements have no contributory value (see Topic 22 of this Chapter.) 3. Street Map • Showing location of subject and each comparable sale • Additional maps if sales are a substantial distance away from the subject. Continued on next page

#8 VA Lenders Handbook (Pamphlet 26-7) Page 384

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Appraisal Report 11-6 3. Appraisal Report Contents, continued c. Appraisal Report Contents, continued 4. Building Sketch • Gross living area calculations • Exterior dimensions of…

VA Lenders Handbook (Pamphlet 26-7) · VA-Lender-Handbook.pdf · Page 384 · View at official source (VA.gov — Appraisers/Staff Appraisal Reviewer) →

Appraisal Report 11-6 3. Appraisal Report Contents, continued c. Appraisal Report Contents, continued 4. Building Sketch • Gross living area calculations • Exterior dimensions of dwelling, basement, and any other improvements contributing value • Basement may be shown in relation to the floor plan of the house instead of separately • Floor plan layout (interior room dimensions and partitioning are not required) • If interior access is not provided on a liquidation appraisal, a sketch is not required 5. Photographs • Clear and labeled • Front and rear taken at opposite angles to show all sides of the dwelling if possible • Improvements with contributory value • Minimum Property Requirement (MPR) repair items • Street scene • Any views affecting value • Kitchen • Main living area • Bathrooms • Any recent updates, remodeling or renovation • Front view of each comparable sale (real estate marketing photographs are acceptable with an explanation, for example, to exhibit condition at the time of sale, or if a comparable sale is in a gated community that was not accessible to the appraiser) • For condominiums, if the subject and sales are in the same building or identical buildings, the appraiser may comment instead of providing photographs of the sales • Interior photographs are not required on liquidation appraisals when access to the interior of the property is not available 6. Repair list • Itemized list of any observed MPR repairs (see Chapter 12 of this handbook) or customer preference items to be installed on new construction appraisals • May be included directly on the appraisal form 7. Uniform Appraisal Dataset (UAD) • UAD Property Condition and Quality Rating Definitions • UAD Property Description Abbreviations (see Topic 13 of this chapter) Continued on next page

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