Hello - I was wondering if someone could help me with a question. During a mortgage audit, I reviewed some purchased loans (Freddie Mac and Fannie Mae ) that were not required to have an appraisal. For each one of these loans, I was not able to obtain a property evaluation. After looking over FIRREA (Section XI), it appears an evaluation is required when an appraisal is not needed. The Business Line stated they have never done an evaluation when an appraisal is not required and also suggested that this is industry practice. After looking deeper into FIRREA and other sources, I was unable to find language that suggested this.
Would anyone know if there is guidance that provides an evaluation exception when an appraisal is not required on purchased loans?
-Thank You
Steven
