source:
  type: guide
  id: fnma-sel-b4-1.1-04
  authority: Fannie Mae Selling Guide B4-1.1-04 — Unacceptable Appraisal Practices
  description: Fannie Mae Selling Guide B4-1.1-04 — Unacceptable Appraisal Practices.
  coverage_tier: operative
obligations:
- id: fnma-sel-b4-1.1-04-full
  canonical_id: fnma-sel-b4-1.1-04-full
  section: Fannie Mae Selling Guide B4-1.1-04 — Unacceptable Appraisal Practices
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B4-1.1-04 — Unacceptable Appraisal Practices
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B4-1.1-04, Unacceptable Appraisal Practices (06/04/2025) Introduction
      This topic contains examples of unacceptable practices, many of which are reﬂected
      in the appraiser’s certiﬁcations on the appraisal reports. Unacceptable Appraisal
      Practices Uniform Appraisal Dataset (UAD) 3.6 Policy Unacceptable Appraisal
      Practices The following are examples of unacceptable appraisal practices: development
      of or reporting an opinion of market value (including responses to requests
      for an ROV) that is not supportable by market data or is misleading; development
      of a valuation conclusion based either partially or completely on the sex, race,
      color, religion, disability, national origin, familial status, or including
      a reference to any protected class of either the prospective owners or occupants
      of the subject property or the present owners or occupants of the properties
      in the vicinity of the subject property; reference to crime rate or related
      data; use of unsupported assumptions, interjections of personal opinion, or
      perceptions about factors in the valuation process and the use of subjective
      terminology, including, but not limited to: "pride of ownership," "no pride
      of ownership," and "lack of pride of ownership"; "poor neighborhood"; "good
      neighborhood"; "crime" (and its variants); "desirable neighborhood or location";
      or "undesirable neighborhood or location"; development of a valuation conclusion
      based on factors that local, state, or federal law designate as discriminatory,
      and thus, prohibited; Published May 6, 2026 524 misrepresentation of the physical
      characteristics of the subject property, improvements, or comparable sales;
      failure to comment on negative factors with respect to the subject neighborhood,
      the subject property, or proximity of the subject property to adverse inﬂuences;
      failure to adequately analyze and report any current contract of sale, option,
      oﬀering, or listing of the subject property and the prior sales of the subject
      property and the comparable sales; selection and use of inappropriate comparable
      sales; failure to use comparable sales that are the most locationally and physically
      similar to the subject property; creation of comparable sales by combining vacant
      land sales with the contract purchase price of a home that has been built or
      will be built on the land; failure to personally inspect the exterior of the
      comparable property when required by the scope of work in the appraisal report;
      use of adjustments to comparable sales that do not reﬂect market reaction to
      the diﬀerences between the subject property and the comparable sales; not supporting
      adjustments in the sales comparison approach; failure to make market-derived
      adjustments, including time adjustments, when they are clearly indicated; use
      of data, particularly comparable sales data, provided by parties that have a
      ﬁnancial interest in the sale or in the ﬁnancing of the subject property without
      the appraiser’s veriﬁcation of the information from a disinterested source;
      development of an appraisal or reporting an appraisal in a manner or direction
      that favors the cause of either the client or any related party, the amount
      of the opinion of value, the attainment of a speciﬁc result, or the occurrence
      of a subsequent event in order to receive compensation or employment for performing
      the appraisal or in anticipation of receiving future assignments; or development
      of or reporting an appraisal in a manner that is inconsistent with the requirements
      of USPAP. Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must
      follow the requirements in the UAD 3.6 Policy Supplement . Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2025-04 June
      04, 2025 Announcement SEL-2024-08 December 11, 2024 Announcement SEL-2024-03
      May 01, 2024 Announcement SEL-2024-01 February 07, 2024 Published May 6, 2026
      525 Announcements Issue Date Announcement SEL-2022-01 February 02, 2022 Announcement
      SEL-2021-10 November 03, 2021'
  judgment: false
