Fannie Mae Selling Guide B4-1.2-03 — Hybrid Appraisals

Fannie Mae Selling Guide B4-1.2-03 — Hybrid Appraisals

Effective 2025-12-10 · publisher's stamp for this provision

B4-1.2-03, Hybrid Appraisals (12/10/2025) Introduction This topic contains information on hybrid appraisals, including: Overview Completing the Hybrid Appraisal Eligible Transactions Ineligible Transactions Exercising Hybrid Appraisals Representations and Warranties Uniform Appraisal Dataset (UAD) 3.6 Policy Overview For certain loan casefiles, DU offers hybrid appraisals - an appraisal option requiring a property data collection. A hybrid appraisal reported on the Uniform Residential Appraisal Report (Hybrid) (Form 1004 Hybrid) or Individual Condominium Unit Appraisal Report (Hybrid) (Form 1073 Hybrid) must conform to B4-1.1-04, Unacceptable Appraisal Practices. The minimum scope of work for hybrid appraisals includes consideration by the appraiser of interior and exterior property data collection by a trained and vetted third party (such as a real estate agent, insurance inspector, appraiser, etc.). The appraiser relies on the data collected (and other sources if needed) to identify property characteristics including condition. The property data collection must comply with the Uniform Property Dataset and be delivered to the Fannie Mae Property Data API. Completing the Hybrid Appraisal Property data collection and the appraisal report are separate assignments and may be performed by different people. If the appraiser does not perform the data collection, the lender must share the property data collection with the appraiser at the time of engagement. The appraiser will use the data along with other third-party sources to develop the appraisal. The effective date of the hybrid appraisal is the date that the appraiser arrives at their opinion of value. Note: If the appraiser is engaged as a property data collector and at a later date engaged as an appraiser, this is still considered a hybrid appraisal. The lender remains responsible for verifying the accuracy of the property description and the completeness of the data including the condition and quality ratings as determined by the appraiser. 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 Hybrid and Form 1073 Hybrid require the same exhibits as traditional appraisals with the inclusion of a floor plan conforming to the ANSI standard. See B4-1.2-01, Appraisal Report Forms and Exhibits for additional information on exhibits and B4-1.3-05, Improvements Section of the Appraisal Report for additional information on the ANSI standard. 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 "Hybrid" Subject Property Data Collection Method "Physical" Subject Property Data Collection Date "YYYY-MM-DD" Subject Property Data Workforce "Appraiser" "AppraiserTrainee" "RealEstateAgent" "HomeInspector" "InsInspector" (*Insurance Inspector) "Other" Note: For the Subject Property Data Collection Date, the appraiser must enter the date that the property data collection was performed. For the Subject Property Data Workforce, the appraiser must enter the Workforce indicated in the property data that is one of the six Required Entry enumerations listed above. DU Messaging: For loan casefiles that are eligible for a hybrid appraisal option, DU will issue a message informing the lender they can obtain an appraisal reported on Form 1004 Hybrid or Form 1073 Hybrid. DU will also issue messages for other appraisal options. The lender may select from any of the options presented, which may include a hybrid appraisal, desktop appraisal, or traditional appraisal. Eligible Transactions The following are eligible for a hybrid appraisal: existing one-unit properties, including a condo or unit in a PUD; principal residence, second home, or investment properties; under construction properties; existing properties with incomplete construction or renovation project; community land trusts, or other properties with resale price restrictions, which include loan casefiles using the Affordable LTV feature; and Texas 50(a)(6) loans. The transaction must be a purchase, limited cash-out refinance, or cash-out refinance. Ineligible Transactions The following transactions are not eligible for a hybrid appraisal: two- to four-unit properties; co-op units; manufactured homes; proposed construction; construction-to-permanent loans (single-close and two-close); HomeStyle Renovation and HomeStyle Refresh loans; DU loan casefiles that receive an Ineligible recommendation; and manually underwritten loans. Exercising Hybrid Appraisals When exercising a hybrid appraisal, the lender must complete all of the following: obtain a property data collection and successfully submit to the Fannie Mae Property Data API. provide the property data collection to an appraiser for the completion of a hybrid appraisal based on property type using either Form 1004 Hybrid or Form 1073 Hybrid. submit the hybrid appraisal to the Uniform Collateral Data Portal (UCDP). perform an appraisal review in accordance with this Guide. deliver the loan with the hybrid appraisal to Fannie Mae. Note: A lender may obtain a hybrid appraisal if a loan loses value acceptance + property data eligibility after submitting the property data collection to the Property Data API. See B4-1.4-11, Value Acceptance + Property Data B4-1.4-11, Value Acceptance + Property Datafor specific requirements. Representations and Warranties When a hybrid appraisal is reported on Form 1004 Hybrid or Form 1073 Hybrid and submitted through the UCDP, the appraisal will be scored by Collateral Underwriter (CU). All eligible loans with a hybrid appraisal receiving a CU risk score of 2.5 or less are eligible for enforcement relief of certain representations and warranties related to the appraisal value of the subject property (see A2-2-06, Representations and Warranties on Property Value for complete requirements and additional information). Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement .

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