Freddie Mac Single-Family Seller/Servicer Guide Section 5606.3 — Electronic appraisal reports

Freddie Mac Single-Family Seller/Servicer Guide Section 5606.3 — Electronic appraisal reports

5606.3: Electronic appraisal reports (01/26/26) 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 information for: ■ Electronic appraisal report requirements ■ Unacceptable electronic appraisal report practices ■ Seller liabilities and responsibilities Freddie Mac Single-Family Seller/Servicer Guide Chapter 5606 As of 01/26/26 Page 5606-8 (a) Electronic appraisal report requirements The Seller may use and maintain an Electronic Record of the appraisal report as an original Mortgage file document if the following conditions are met: 1. The electronic appraisal report otherwise complies with the applicable appraisal report requirements in Topic 5600 2. The appraiser electronically transmits the electronic appraisal report directly to the Seller or a third party authorized by the Seller 3. The electronically transmitted photographs and any addenda are clear and meet the requirements for exhibits and addenda outlined in Section 5604.2 4. The Seller represents and warrants that the appraiser’s Electronic Signature, and a supervisory appraiser’s signature if applicable, are attached to, or logically associated with, the electronic appraisal report in accordance with the federal Electronic Signatures in Global and National Commerce Act (“E-SIGN”) and other applicable State and federal laws 5. The Seller represents and warrants that the electronic appraisal report is as effective, enforceable and valid as a paper original of the appraisal report duly executed by the appraiser and the supervisory appraiser, if applicable (b) Unacceptable electronic appraisal report practices In addition to the unacceptable appraisal practices set forth in Section 5603.4, the following are unacceptable electronic appraisal report practices, and each constitutes a breach of the Seller’s warranty of the professional quality of the appraisal report: ■ Failure of the appraiser to take reasonable precautions to protect their electronic signature from identity and signature theft, including granting a trainee, administrative personnel or other third-party permission to use the appraiser’s or supervisory appraiser’s electronic signature ■ Failure to maintain proper security controls to protect against alteration of the appraisal report or data used by anyone other than the appraiser, or supervisory appraiser, if applicable, responsible for the appraisal report ■ Failure to securely store the electronic appraisal report, including all original photographs, maps and supporting documents, as originally reported by the appraiser (c) Seller liabilities and responsibilities (i) Liability for the authenticity and accuracy of the appraisal report Freddie Mac Single-Family Seller/Servicer Guide Chapter 5606 As of 01/26/26 Page 5606-9 The Seller retains liability for the authenticity and accuracy of the electronic appraisal report, including all original photographs, maps and supporting documents. If the Seller is concerned about the accuracy or reliability of the electronic appraisal report or photographs, maps and supporting documents, the Seller must immediately obtain a paper duplicate of the electronic appraisal report signed with pen and ink by the appraiser, and the supervisory appraiser, if applicable, and maintain the paper duplicate of the electronic appraisal report in the Mortgage file in accordance with the requirements of Section 3302.1(b). The Seller shall provide the electronic or original appraisal report and photographs, as applicable, to Freddie Mac upon Freddie Mac’s request. (ii) Representations and warranties for authenticity of any appraisal report and required notification The Seller represents and warrants that any appraisal report, including photographs received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record, is a copy of the original appraisal report, including photographs, that was signed by the appraiser, and a supervisory appraiser, if applicable, and that it complies with applicable State and federal laws and regulations. The Seller agrees that the appraisal report and photographs received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record are subject to the Seller’s representations, warranties, covenants, agreements and requirements contained in Chapter 1401. If the Seller becomes aware of the unauthorized or improper use of the appraiser’s signature or the supervisory appraiser’s signature, if applicable, or suspects unauthorized alteration of any appraisal report, including photographs, the Seller must notify Freddie Mac immediately. 5606.3: Electronic appraisal reports (Future effective date 11/02/26) This section contains information for: ■ Electronic appraisal report requirements ■ Unacceptable electronic appraisal report practices ■ Seller liabilities and responsibilities (a) Electronic appraisal report requirements The Seller may use and maintain an Electronic Record of the appraisal report as an original Mortgage file document if the following conditions are met: Freddie Mac Single-Family Seller/Servicer Guide Chapter 5606 As of 01/26/26 Page 5606-10 1. The electronic appraisal report otherwise complies with the applicable appraisal report requirements in Topic 5600 2. The appraiser electronically transmits the electronic appraisal report directly to the Seller or a third party authorized by the Seller 3. The electronically transmitted photographs and any exhibits are clear and meet the requirements for exhibits outlined in Section 5604.2 4. The Seller represents and warrants that the appraiser’s Electronic Signature, and a supervisory appraiser’s signature if applicable, are attached to, or logically associated with, the electronic appraisal report in accordance with the federal Electronic Signatures in Global and National Commerce Act (“E-SIGN”) and other applicable State and federal laws 5. The Seller represents and warrants that the electronic appraisal report is as effective, enforceable and valid as a paper original of the appraisal report duly executed by the appraiser and the supervisory appraiser, if applicable (b) Unacceptable electronic appraisal report practices In addition to the unacceptable appraisal practices set forth in Section 5603.4, the following are unacceptable electronic appraisal report practices, and each constitutes a breach of the Seller’s warranty of the professional quality of the appraisal report: ■ Failure of the appraiser to take reasonable precautions to protect their electronic signature from identity and signature theft, including granting a trainee, administrative personnel or other third-party permission to use the appraiser’s or supervisory appraiser’s electronic signature ■ Failure to maintain proper security controls to protect against alteration of the appraisal report or data used by anyone other than the appraiser, or supervisory appraiser, if applicable, responsible for the appraisal report ■ Failure to securely store the electronic appraisal report, including all original photographs, maps and supporting documents, as originally reported by the appraiser (c) Seller liabilities and responsibilities (i) Liability for the authenticity and accuracy of the appraisal report The Seller retains liability for the authenticity and accuracy of the electronic appraisal report. If the Seller is concerned about the accuracy or reliability of the electronic appraisal report, the Seller must immediately obtain a paper duplicate of the electronic appraisal report signed with pen and ink by the appraiser, and the supervisory appraiser, if applicable, and maintain the paper duplicate of the electronic appraisal report in the Freddie Mac Single-Family Seller/Servicer Guide Chapter 5606 As of 01/26/26 Page 5606-11 Mortgage file in accordance with the requirements of Section 3302.1(b). The Seller shall provide the electronic or original appraisal report to Freddie Mac upon Freddie Mac’s request. (ii) Representations and warranties for authenticity of any appraisal report and required notification The Seller represents and warrants that any appraisal report received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record, is a copy of the original appraisal report that was signed by the appraiser, and a supervisory appraiser, if applicable, and that it complies with applicable State and federal laws and regulations. The Seller agrees that the appraisal report received from an appraiser by the Seller or any third party specifically authorized by the Seller as an Electronic Record are subject to the Seller’s representations, warranties, covenants, agreements and requirements contained in Chapter 1401. If the Seller becomes aware of the unauthorized or improper use of the appraiser’s signature or the supervisory appraiser’s signature, if applicable, or suspects unauthorized alteration of any appraisal report the Seller must notify Freddie Mac immediately. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-1 Chapter 5701: Condominiums 5701.1: Seller’s assessment of Condominium Project risks; terms used in this chapter (05/06/26) This section contains: ■ Seller’s assessment of Condominium Project risks ■ Glossary definitions and other terms used in this chapter (a) Seller’s assessment of Condominium Project risks Freddie Mac requires a Condominium Project review to address certain project risks including, but not limited to: ■ The marketability and condition of the project ■ The marketability of the units within the project ■ The financial stability and viability of the project ■ Project-level litigation ■ Restrictions on unit owners’ rights to occupy the unit ■ Ownership and use of the Common Elements and Amenities; and ■ The adequacy of insurance coverage to protect the project from damage and loss Freddie Mac expects the Seller to have staff that is experienced and knowledgeable about Condominium Project risks and to place as much emphasis on the adequacy of the property as collateral as it does on underwriting the Borrower’s creditworthiness. The quality of a Mortgage secured by a unit in a Condominium Project can be impacted by the financial stability and viability of the particular project, among other project characteristics. The conclusion that a Mortgage is acceptable to Freddie Mac must be based on the determination that the Borrower is creditworthy and the Mortgaged Premises is adequate collateral for the Mortgage transaction. If a Seller determines that an Established Condominium Project does not meet certain Freddie Mac project eligibility requirements and concludes that the Mortgaged Premises is still adequate collateral for the Mortgage transaction, then the Seller may request that Freddie Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-2 Mac consider a waiver. For information on requesting Freddie Mac to consider a waiver of its project eligibility requirements, see Section 5701.11. (b) Glossary definitions and other terms used in this chapter (i) Glossary definitions for Condominium Projects and unit type The Seller should be familiar with the Glossary definitions of the following terms: Glossary definitions for Condominium Projects and unit type D Detached Condominium Project A Condominium Project comprised solely of Detached Condominium Units. Detached Condominium Unit A Condominium Unit that is completely detached from any other unit in a Condominium Project. A Detached Condominium Unit can be in a Detached Condominium Project or in a Condominium Project that contains a mixture of attached, detached and/or semi-detached units. E Established Condominium Project An Established Condominium Project is a Condominium Project in which: ■ The Condominium Project (all Condominium Units, Common Elements and Amenities) and related facilities owned by any Master Association are complete and not subject to any additional phasing ■ At least 75% of the total units in the project have been conveyed to the unit purchasers, and ■ The unit owners control the homeowners association N New Condominium Project A New Condominium Project is a Condominium Project in which: ■ The Condominium Project (all Condominium Units, Common Elements and Amenities) and related facilities owned by any Master Association are not complete, or are subject to additional phasing ■ Fewer than 75% of the total number of units in the project must have been conveyed to the unit purchasers, or Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-3 Glossary definitions for Condominium Projects and unit type ■ The developer has not turned control of the homeowners association over to the unit owners # 2- to 4-Unit Condominium Project A project that is comprised of at least two but no more than four units that are each separately deeded with separate legal descriptions. The units may be attached, detached or semi- detached units or a mixture of attached, detached and/or semi- detached units. The units may also be a mixture of residential units and no more than one commercial unit. 5- to 10-Unit Condominium Project A project that is comprised of at least five but no more than 10 units that are each separately deeded with separate legal descriptions. The units may be attached, detached or semi- detached units or a mixture of attached, detached and/or semi- detached units. The units may also be a mixture of residential units and commercial units. (ii) Glossary definitions for Critical Repairs and Routine Repairs The Seller should be familiar with the Glossary definitions of the following terms: Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-4 Glossary definitions for Critical Repairs and Routine Repairs C Critical Repairs (includes material deficiencies and significant deferred maintenance) Repairs and replacements that significantly impact the safety, soundness, structural integrity or habitability of the project’s building(s) and/or that impact unit values, financial viability or marketability of the project. These include: ■ Material deficiencies which, if left uncorrected, have the potential to result in or contribute to critical element or system failure within one year ■ Any mold, water intrusions or potentially damaging leaks to the project’s building(s) that have not been repaired ■ Advanced physical deterioration ■ Any project that failed to pass state, county, or other jurisdictional mandatory inspections and/or certifications specific to structural soundness, safety, and habitability; or ■ Any unfunded repairs costing more than $10,000 per unit that should be undertaken within the next 12 months (does not include repairs made by the unit owner or repairs funded through a special assessment) Examples of some items to consider include, but are not limited to, sea walls, elevators, waterproofing, stairwells, balconies, foundation, electrical systems, parking structures or other load- bearing structures. R Routine Repairs These repairs are not considered to be critical and include work that is: ■ Preventative in nature or part of normal capital replacements (e.g., focused on keeping the project fully functioning and serviceable); and ■ Accomplished within the project’s normal operating budget or through special assessments that are within guidelines (iii) Other terms used in this chapter The following additional terms are used in this chapter: Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-5 Additional defined terms C Condo Project Advisor® Feedback Certificate The printed or printable document returned by Condo Project Advisor that details the approval of a Project Waiver Request (PWR) submission or details the Project Assessment Request (PAR) findings. H Homeowners Association (HOA) A Homeowners Association is an association comprised of unit owners that maintains the Common Elements for the benefit of the unit owners. In a Condominium Project, the association has no ownership interest in the Common Elements. 5701.2: Condominium Project review and general Condominium Project eligibility requirements (05/06/26) The Seller must determine compliance with Freddie Mac’s project review and eligibility requirements in this section. This section contains: ■ Condominium Project review requirements ■ General Condominium Project eligibility requirements ■ Freddie Mac right to review Condominium Projects ■ Overview of Condominium Project review and eligibility requirements and project review types (a) Condominium Project review requirements Except for Condominium Unit Mortgages delivered in accordance with the requirements in Section 5701.7 relating to Exempt from Review or Section 5701.10 relating to Condominium Projects with a Project Certified status Project Assessment Request (PAR) finding, the Seller must ensure that: 1. The Condominium Unit Mortgage, the Condominium Unit and the Condominium Project comply with project eligibility requirements for one of the following project review types: Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-6 ■ Streamlined reviews (See Section 5701.4) ■ Established Condominium Projects (See Section 5701.5) ■ New Condominium Projects (See Section 5701.6) ■ Reciprocal project reviews (See Section 5701.9) 2. The project is not an ineligible project (See Section 5701.3) Note: If the Condominium Unit Mortgage to be delivered complies with the reciprocal project review requirements in Section 5701.9(a), then compliance with Section 5701.3 is not required. 3. The Seller reviews and determines that a Condominium Project complies with Freddie Mac’s requirements as follows: Condominium Project review expiration Project review type Expiration of project review Streamlined reviews (Section 5701.4) Established Condominium Projects (Section 5701.5) Within one year prior to the Note Date New Condominium Projects (Section 5701.6) Within 180 days prior to the Note Date If the Condominium Project does not meet Freddie Mac’s project eligibility requirements on the Note Date, the Seller may deliver the Condominium Unit Mortgage at the time the Condominium Project complies with all of the project eligibility requirements as long as all other applicable requirements have been met. 4. The Condominium Project remains in full compliance with the applicable State law, the requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations governing the Condominium Project (b) General Condominium Project eligibility requirements The Seller must review and determine compliance with the following requirements: 1. The project must have insurance that complies with the applicable requirements of Chapter 4703 Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-7 2. The Condominium Unit must be covered by a title insurance policy that complies with requirements of Chapter 4702 3. If a Condominium Project is on a leasehold estate, the lease must comply with the requirements of Chapter 5704 4. The Seller must deliver a Condominium Unit Mortgage no later than 120 days after the Note Date. If the Condominium Unit Mortgage is not delivered within 120 days after the Note Date, the Seller must update the review and determination of the Condominium Project eligibility. 5. The Seller must have policies and procedures in place, and must take appropriate steps to ensure that the Condominium Unit, the Condominium Unit Mortgage and the Condominium Project comply with applicable requirements 6. The Seller must retain all documentation related to the review of the Condominium Project. Upon request, the Seller must provide the project information and documentation to Freddie Mac. 7. The Seller must not deliver a Mortgage secured by a Condominium Unit in a Condominium Project with a Not Eligible status as provided in Section 5701.10(d)(i) (c) Freddie Mac right to review Condominium Projects Freddie Mac reserves the right to conduct its own review of the Condominium Project for Condominium Unit Mortgages delivered to Freddie Mac. (d) Overview of Condominium Project review and eligibility requirements and project review types Below is a table illustrating an overview of our Condominium Project review and eligibility requirements and project review types: Condominium Project review and eligibility requirements overview Seller must determine compliance with Project review requirements in Section 5701.2 (a) General project eligibility requirements in Section 5701.2(b) Ineligible projects Section 5701.3 Freddie Mac project review types Streamlined reviews1 X X X Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-8 Section 5701.4 Established Condominium Projects Section 5701.5 X X X New Condominium Projects Section 5701.6 X X X Reciprocal project reviews – Fannie Mae-approved and certified projects Section 5701.9(a) X Reciprocal project reviews – FHA-Approved Project review for condominiums Section 5701.9(b) X X If delivered in accordance with the requirements in Section 5701.10 or 5701.7: Condominium Projects with a Project Certified status Section 5701.10 X 2- to 4- Unit Condominium Projects X See Note 2 5- to 10-Unit Condominium Projects not part of a Master Association X See Note 2 Detached Condominium Units X See Note 2 Freddie Mac-owned “no cash- out” refinance Condominium Unit Mortgage X See Notes 2 & 3 Refi Possible® Mortgage X See Notes 2 & 3 1Condominium Project must meet the Glossary definition of an Established Condominium Project. 2Condominium Project must not be a Condominium Hotel or similar type of transient housing, houseboat project, timeshare project or project with segmented ownership or a project that is terminating or involved in insolvency proceedings. (See Section 5701.3.) The Condominium Project must not include Manufactured Homes, unless the Condominium Unit Mortgage is a Refi Possible Mortgage. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-9 3Condominium Project is not in need of Critical Repairs and does not have an evacuation order. (See Sections 5701.3(n) and 5701.3(o) for details.) 5701.2: Condominium Project review and general Condominium Project eligibility requirements (Future effective date 08/03/26) Effective for Mortgages with Application Received Dates on or after August 3, 2026. The Seller must determine compliance with Freddie Mac’s project review and eligibility requirements in this section. This section contains: ■ Condominium Project review requirements ■ General Condominium Project eligibility requirements ■ Freddie Mac right to review Condominium Projects ■ Overview of Condominium Project review and eligibility requirements and project review types (a) Condominium Project review requirements Except for Condominium Unit Mortgages delivered in accordance with the requirements in Section 5701.7 relating to Exempt from Review or Section 5701.10 relating to Condominium Projects with a Project Certified status Project Assessment Request (PAR) finding, the Seller must ensure that: 1. The Condominium Unit Mortgage, the Condominium Unit and the Condominium Project comply with project eligibility requirements for one of the following project review types: ■ Established Condominium Projects (See Section 5701.5) ■ New Condominium Projects (See Section 5701.6) ■ Reciprocal project reviews (See Section 5701.9) 2. The project is not an ineligible project (See Section 5701.3) Note: If the Condominium Unit Mortgage to be delivered complies with the reciprocal project review requirements in Section 5701.9(a), then compliance with Section 5701.3 is not required. Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-10 3. The Seller reviews and determines that a Condominium Project complies with Freddie Mac’s requirements as follows: Condominium Project review expiration Project review type Expiration of project review Established Condominium Projects (Section 5701.5) Within one year prior to the Note Date New Condominium Projects (Section 5701.6) Within 180 days prior to the Note Date If the Condominium Project does not meet Freddie Mac’s project eligibility requirements on the Note Date, the Seller may deliver the Condominium Unit Mortgage at the time the Condominium Project complies with all of the project eligibility requirements as long as all other applicable requirements have been met. 4. The Condominium Project remains in full compliance with the applicable State law, the requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations governing the Condominium Project (b) General Condominium Project eligibility requirements The Seller must review and determine compliance with the following requirements: 1. The project must have insurance that complies with the applicable requirements of Chapter 4703 2. The Condominium Unit must be covered by a title insurance policy that complies with requirements of Chapter 4702 3. If a Condominium Project is on a leasehold estate, the lease must comply with the requirements of Chapter 5704 4. The Seller must deliver a Condominium Unit Mortgage no later than 120 days after the Note Date. If the Condominium Unit Mortgage is not delivered within 120 days after the Note Date, the Seller must update the review and determination of the Condominium Project eligibility. 5. The Seller must have policies and procedures in place, and must take appropriate steps to ensure that the Condominium Unit, the Condominium Unit Mortgage and the Condominium Project comply with applicable requirements Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-11 6. The Seller must retain all documentation related to the review of the Condominium Project. Upon request, the Seller must provide the project information and documentation to Freddie Mac. 7. The Seller must not deliver a Mortgage secured by a Condominium Unit in a Condominium Project with a Not Eligible status as provided in Section 5701.10(d)(i) (c) Freddie Mac right to review Condominium Projects Freddie Mac reserves the right to conduct its own review of the Condominium Project for Condominium Unit Mortgages delivered to Freddie Mac. (d) Overview of Condominium Project review and eligibility requirements and project review types Below is a table illustrating an overview of our Condominium Project review and eligibility requirements and project review types: Condominium Project review and eligibility requirements overview Seller must determine compliance with Project review requirements in Section 5701.2 (a) General project eligibility requirements in Section 5701.2(b) Ineligible projects Section 5701.3 Freddie Mac project review types Established Condominium Projects Section 5701.5 X X X New Condominium Projects Section 5701.6 X X X Reciprocal project reviews – Fannie Mae-approved and certified projects Section 5701.9(a) X Reciprocal project reviews – FHA-Approved Project review for condominiums X X Freddie Mac Single-Family Seller/Servicer Guide Chapter 5701 As of 05/06/26 Page 5701-12 Section 5701.9(b) If delivered in accordance with the requirements in Section 5701.10 or 5701.7: Condominium Projects with a Project Certified status Section 5701.10 X 2- to 4- Unit Condominium Projects X See Note 1 5- to 10-Unit Condominium Projects not part of a Master Association X See Note 1 Detached Condominium Units X See Note 1 Freddie Mac-owned “no cash- out” refinance Condominium Unit Mortgage X See Notes 1 & 2 Refi Possible® Mortgage X See Notes 1 & 2 1Condominium Project must not be a Condominium Hotel or similar type of transient housing, houseboat project, timeshare project or project with segmented ownership or a project that is terminating or involved in insolvency proceedings. (See Section 5701.3.) The Condominium Project must not include Manufactured Homes, unless the Condominium Unit Mortgage is a Refi Possible Mortgage. 2Condominium Project is not in need of Critical Repairs and does not have an evacuation order. (See Sections 5701.3(n) and 5701.3(o) for details.)

Source: Freddie Mac Single-Family Seller/Servicer Guide Section 5606.3 — Electronic appraisal reports · source URL · snapshot 5869ee9e606cd4ae