After September 1st, your appraisals are going to look a bit different. Basically, the agencies have been warning us for the last year or so that they were creating a uniform set of "codes" that will be used by all appraisers, nationwide.
Fannie and Freddie have impletemented the new codes as of 9-1-11. FHA just announced that they are delaying implementation unitl 1-1-12.
While most of the changes involve changing the written explanations to codes, here are 6 of them that you and your clients will definitely want to know about.
1. Bathroom Code - Instead of saying 2.5 bathrooms, the appraiser will now say 2.1 bathrooms. The figure to the left of the decimal means full bathrooms and the number to the right of the decimal point is the amount of 1/2 baths. So the number 3.4 means there are 3 full and 4 half-baths.
2. Condition Rating Code - You'll no longer see "good, average, or poor" ratings. There will now be codes from C-1 to C-6, with C-6 being the worst and you will probably not be able to finance a C-6 rated property.
3. Quality Rating Code - This basically applies to new construction, either a new home or an addition to an existing home. The codes will be Q-1 to !-6.
4. Other codes - there are 60 "fields" that have changed that have inititals instead of descriptions, which are included in the UAD Appraisal Codes Chart.
5. Type of Home Code - Appraisers can no longer just say that the home is "single-story or 2 story". They must specify the type of design like: Colonial, contemporary, Victorian, farmhouse, ranch, cottage, etc.
6. Basement Information - Appraisers will also be required to report the square footage of basements, regardless if it's finished or not.
Here's the chart for you!
