Freddie Mac Single-Family Seller/Servicer Guide 4504.9 — Appraisal requirements for HeritageOne® Mortgages

Freddie Mac Single-Family Seller/Servicer Guide 4504.9 — Appraisal requirements for HeritageOne® Mortgages

Effective 2026-02-04 · Freddie Mac's stamp for this section

Refer to Bulletin 2025-7, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal® appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section. This section contains requirements related to: ■ Appraiser qualifications ■ Appraisal type, automated collateral evaluation (ACE) eligibility and ACE+ PDR eligibility ■ Appraised value representation and warranty relief ■ Appraisal cost offset credit ■ Sales comparison approach and cost approach ■ Additional form instructions ■ Site value ■ Uniform Collateral Data Portal® (UCDP®) ■ Additional resources The following appraisal requirements apply to HeritageOne® Mortgages: (a) Appraiser qualifications In addition to the appraiser qualifications in Section 5603.1, the Seller must ensure the appraiser has the knowledge and experience required to perform appraisals for properties located in Tribal Areas. By way of example and not of limitation, the appraiser must be knowledgeable about and have experience with the various types of land ownership interests (e.g., tribal trust land, allotted trust land, unrestricted or restricted fee simple land, etc.) and have access to all appropriate data sources. Although traditional appraisal data sources (e.g., multiple listing service, public land records, etc.) remain important sources of data, the appraiser may need access to other sources of data and information, such as those maintained by the BIA and the Eligible Native American Tribe within whose Tribal Area the Mortgaged Premises is located, to develop a fully supported and sufficiently documented opinion of market value. (b) Appraisal type, ACE eligibility and ACE+ PDR eligibility The appraisal must meet the requirements of Topic 5600. Unless ACE or ACE+ PDR is offered and accepted in accordance with Section 5602.3 or 5602.4, respectively: ■ An appraisal report with an interior and exterior inspection is required; and ■ The Seller must maintain in the Mortgage file all property valuation documentation (c) Appraised value representation and warranty relief If an appraisal report is obtained and the sales comparison approach was used, the Mortgage may be eligible for appraised value representation and warranty relief, if the requirements for Loan Collateral Advisor® appraised value representation and warranty relief in Section 5602.2 are met. (d) Appraisal cost offset credit If an appraisal report is obtained for the Mortgage transaction, Freddie Mac will issue an appraisal cost offset credit, which must be passed to the Borrower. The appraisal cost offset credit will be detailed in the Seller’s Purchase Documents. (e) Sales comparison approach and cost approach When a sufficient number of comparable sales (i.e., a minimum of three closed comparable sales) are available, the sales comparison approach (with any support provided from the cost approach or income approach, as applicable) must be used by the appraiser. It is acceptable to use comparable sales that are older than, distant from or dissimilar to the subject property, if the applicable sales comparison approach requirements in Section 5605.6 are met. For Market Areas without a sufficient number of comparable sales to develop a fully supported and sufficiently documented opinion of market value using the sales comparison approach, although Sections 5605.6 and 5605.7(a) provide otherwise, an appraisal report that relies solely on the cost approach for the opinion of market value is acceptable, if the appraiser: ■ Provides: ❑ A well-developed cost approach that includes a fully completed cost approach section of the report ❑ Sufficient detail to allow the Seller to replicate the cost approach; and ❑ In the reconciliation section of the report, an explanation of how the value was derived ■ Uses the revised scope of work, statement of assumptions and limiting conditions and appraiser’s certifications (which will be provided in the Seller’s Purchase Documents), and the additional form instructions set forth below; and ■ Completes all fields in the report, other than the comparable sales data in the sales comparison approach grid An appraisal report may not rely solely on the cost approach for the opinion of market value if the Mortgage is secured by a: ■ Property subject to resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deedin-lieu of foreclosure ■ Condominium Unit ■ 2- to 4-unit property; or ■ Property with an ADU (f) Additional form instructions For an appraisal report that relies solely on the cost approach for the opinion of market value, the report must include the text identifier “Heritage1” in the “File #” field in the appraisal report form. The appraiser must complete all applicable fields for the subject property in the sales comparison approach grid, including, but not limited to: ■ Location ■ View ■ Quality of Construction ■ Condition ■ Gross Living Area (g) Site value For properties on land that is owned in fee simple, for appraisal reports that rely solely on the cost approach for the opinion of market value, a site value must be developed and reported. For leasehold Mortgages, if there is no ground rent due under the lease agreement and no upfront payment was made, the leased fee value is zero, and no value is attributable to the underlying land. (h) UCDP If an appraisal report is obtained for the Mortgage transaction, the report must be submitted to the UCDP and receive a “Successful” status prior to delivery of the Mortgage. (i) Additional resources Sellers are encouraged to review the Appraisal Institute’s appraisal training curriculum for performing property valuations in tribal areas.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4504.9 — Appraisal requirements for HeritageOne® Mortgages · source URL · snapshot 4c94f67729042dd6

Freddie Mac Single-Family Seller/Servicer Guide 4504.9 — Appraisal requirements for HeritageOne® Mortgages — PENDING VERSION, takes effect 2026-11-02

Not yet in force. This is the pending version of the section, which takes effect 2026-11-02. The other version on this page governs until then.

Effective 2026-02-04 · Freddie Mac's stamp for this section

Mortgages (Future effective date 11/02/26) This section contains requirements related to: ■ Appraiser qualifications ■ Appraisal type, automated collateral evaluation (ACE) eligibility and ACE+ PDR eligibility ■ Appraised value representation and warranty relief ■ Appraisal cost offset credit ■ Sales comparison approach and cost approach ■ Additional form instructions ■ Site value ■ Uniform Collateral Data Portal® (UCDP®) ■ Additional resources The following appraisal requirements apply to HeritageOne® Mortgages: (a) Appraiser qualifications In addition to the appraiser qualifications in Section 5603.1, the Seller must ensure the appraiser has the knowledge and experience required to perform appraisals for properties located in Tribal Areas. By way of example and not of limitation, the appraiser must be knowledgeable about and have experience with the various types of land ownership interests (e.g., tribal trust land, allotted trust land, unrestricted or restricted fee simple land, etc.) and have access to all appropriate data sources. Although traditional appraisal data sources (e.g., multiple listing service, public land records, etc.) remain important sources of data, the appraiser may need access to other sources of data and information, such as those maintained by the BIA and the Eligible Native American Tribe within whose Tribal Area the Mortgaged Premises is located, to develop a fully supported and sufficiently documented opinion of market value. (b) Appraisal type, ACE eligibility and ACE+ PDR eligibility The appraisal must meet the requirements of Topic 5600. Unless ACE or ACE+ PDR is offered and accepted in accordance with Section 5602.3 or 5602.4, respectively: ■ An appraisal report with an interior and exterior inspection is required; and ■ The Seller must maintain in the Mortgage file all property valuation documentation (c) Appraised value representation and warranty relief If an appraisal report is obtained and the sales comparison approach was used, the Mortgage may be eligible for appraised value representation and warranty relief, if the requirements for Loan Collateral Advisor® appraised value representation and warranty relief in Section 5602.2 are met. (d) Appraisal cost offset credit If an appraisal report is obtained for the Mortgage transaction, Freddie Mac will issue an appraisal cost offset credit, which must be passed to the Borrower. The appraisal cost offset credit will be detailed in the Seller’s Purchase Documents. (e) Sales comparison approach and cost approach When a sufficient number of comparable sales (i.e., a minimum of three closed comparable sales) are available, the sales comparison approach (with any support provided from the cost approach or income approach, as applicable) must be used by the appraiser. It is acceptable to use comparable sales that are older than, distant from or dissimilar to the subject property, if the applicable sales comparison approach requirements in Section 5605.7 are met. For Market Areas without a sufficient number of comparable sales to develop a fully supported and sufficiently documented opinion of market value using the sales comparison approach, although Sections 5605.7 and 5605.8(a) provide otherwise, an appraisal report that relies solely on the cost approach for the opinion of market value is acceptable, if the appraiser: ■ Provides: ❑ A well-developed cost approach that includes a fully completed cost approach section of the report ❑ Sufficient detail to allow the Seller to replicate the cost approach; and ❑ In the reconciliation section of the report, an explanation of how the value was derived ■ Uses the revised scope of work, statement of assumptions and limiting conditions and appraiser’s certifications (which will be provided in the Seller’s Purchase Documents), and the additional form instructions set forth below; and ■ Completes all fields in the report, other than the comparable sales data in the sales comparison approach grid An appraisal report may not rely solely on the cost approach for the opinion of market value if the Mortgage is secured by a: ■ Property subject to resale restrictions that terminate upon foreclosure (or expiration of any applicable legally required foreclosure redemption period) or recordation of a deedin-lieu of foreclosure ■ Condominium Unit ■ 2- to 4-unit property; or ■ Property with an ADU (f) Additional form instructions For an appraisal report that relies solely on the cost approach for the opinion of market value, the report must include the text identifier “Heritage1” in the “File #” field in the appraisal report form. The appraiser must complete all applicable fields for the subject property in the sales comparison approach grid, including, but not limited to: ■ Location ■ View ■ Quality of Construction ■ Condition ■ Gross Living Area (g) Site value For properties on land that is owned in fee simple, for appraisal reports that rely solely on the cost approach for the opinion of market value, a site value must be developed and reported. For leasehold Mortgages, if there is no ground rent due under the lease agreement and no upfront payment was made, the leased fee value is zero, and no value is attributable to the underlying land. (h) UCDP If an appraisal report is obtained for the Mortgage transaction, the report must be submitted to the UCDP and receive a “Successful” status prior to delivery of the Mortgage. (i) Additional resources Sellers are encouraged to review the Appraisal Institute’s appraisal training curriculum for performing property valuations in tribal areas.

Source: Freddie Mac Single-Family Seller/Servicer Guide 4504.9 — Appraisal requirements for HeritageOne® Mortgages · source URL · snapshot 4c94f67729042dd6