source:
  type: regulation
  id: fhlmc-5603.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
  description: "Freddie Mac Guide §5603.4 (Unacceptable appraisal practices). Gap-fill (verbatim, ID-diff). \n"
obligations:
- id: fhlmc-5603.4-0
  canonical_id: fhlmc-5603.4-0
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 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.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 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.
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-1
  canonical_id: fhlmc-5603.4-1
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 603-8 The following are examples of unacceptable appraisal
    practices. Evidence of any of the practices listed in this section will be a breach of Seller’s warranty as
    to the professional quality of the appraisal. 1. Consideration of the race, color, religion, sex, sexual orientat…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 603-8 The following are examples of unacceptable appraisal practices. Evidence of any of the
      practices listed in this section will be a breach of Seller’s warranty as to the professional quality of the
      appraisal. 1. Consideration of the race, color, religion, sex, sexual orientation, gender identity, age, marital
      status, disability, familial status, exercise of any federally protected civil right, receipt of income derived
      from any public assistance program, birthplaces of residents at the property or in the Neighborhood, national
      origin of the prospective owners or occupants of the subject property or of the present owners or occupants
      of the properties in the vicinity of the subject property. (See also Section 1301.2 for equal opportunity
      compliance requirements.) 2. Use of unsupported or subjective terms or statements to assess or rate, such
      as, but not limited to, “high,” “low,” “good,” “bad,” “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast”
      or “average” without providing a foundation for analysis and contextual information 3. Incorporating terminology
      or veiled language that could indicate underlying bias, including but not limited to, “pride of ownership,”
      “crime-ridden area,” “desirable neighborhood or location” or “undesirable neighborhood or location,” “gentrified,”
      “working class,” “inner city,” “preferred community,” “up and coming,” predominantly Hispanic or Black neighborhood,
      substantial amount of Black or Hispanic residents at the property, diverse school system, amenities specifically
      geared to a race, ethnic or religious group or using terms such as Millennials, Generation X or Baby Boomers
      4. Development of an appraisal using inaccurate or incomplete data about the subject property, the Neighborhood,
      the Market Area or any comparable property used in the appraisal analysis or report 5. Inclusion of references,
      statements or comparisons about crime rates or crime statistics, whether objective or subjective, in the appraisal
      analysis or report 6. Consideration of the age or location of a dwelling, or the age of the Neighborhood or
      census tract where the dwelling is located, in a manner that has a discriminatory effect 7. Basing the development
      of an opinion of value on factors that local, State or federal law designates as discriminatory 8. Reliance
      in the appraisal analysis on comparable properties that were not personally inspected by the appraiser when
      required by the appraisal’s scope of work. A personal inspection requires at least a visual inspection of
      the exterior of the comparable property. 9. Reliance in any appraisal analysis on inappropriate comparable
      properties, or the failure to use comparable properties that are more similar, or nearer, to the subject property
      without adequate explanation 10. Use of comparable property data provided by any interested party to the transaction
      without verification by a disinterested party
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-2
  canonical_id: fhlmc-5603.4-2
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 603-9 11. Use of inordinate adjustments for differences
    between the subject property and the comparable properties that do not reflect the market’s reaction to such
    differences, or the failure to make proper adjustments when necessary 12. Development of an opinion of value
    and/or…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '603-9 11. Use of inordinate adjustments for differences between the subject property and the
      comparable properties that do not reflect the market’s reaction to such differences, or the failure to make
      proper adjustments when necessary 12. Development of an opinion of value and/or marketability conclusions
      that is not supported by available market data 13. Breach by the appraiser or supervisory appraiser of a certification
      or Statement of Assumptions and Limiting Conditions or comparable statements on any Freddie Mac approved appraisal
      report form or addendum Note: See Section 5606.3 for additional unacceptable appraisal practices related to
      electronic appraisal reports.'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-3
  canonical_id: fhlmc-5603.4-3
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: Unacceptable appraisal practices (Future effective date
    11/02/26) The following are examples of unacceptable appraisal practices. Evidence of any of the practices listed
    in this section will be a breach of Seller’s warranty as to the professional quality of the appraisal. 1. Cons…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: Unacceptable appraisal practices (Future effective date 11/02/26) The following are examples
      of unacceptable appraisal practices. Evidence of any of the practices listed in this section will be a breach
      of Seller’s warranty as to the professional quality of the appraisal. 1. Consideration of the race, color,
      religion, sex, sexual orientation, gender identity, age, marital status, disability, familial status, exercise
      of any federally protected civil right, receipt of income derived from any public assistance program, birthplaces
      of residents at the property or in the Neighborhood, national origin of the prospective owners or occupants
      of the subject property or of the present owners or occupants of the properties in the vicinity of the subject
      property. (See also Section 1301.2 for equal opportunity compliance requirements.) 2. Use of unsupported or
      subjective terms or statements to assess or rate, such as, but not limited to, “high,” “low,” “good,” “bad,”
      “fair,” “poor,” “strong,” “weak,” “rapid,” “slow,” “fast” or “average” without providing a foundation for
      analysis and contextual information 3. Incorporating terminology or veiled language that could indicate underlying
      bias, including but not limited to, “pride of ownership,” “crime-ridden area,” “desirable neighborhood or
      location” or “undesirable neighborhood or location,” “gentrified,” “working class,” “inner city,” “preferred
      community,” “up and coming,” predominantly Hispanic or Black neighborhood, substantial amount of Black or
      Hispanic residents at the property, diverse school system, amenities specifically geared to a race, ethnic
      or religious group or using terms such as Millennials, Generation X or Baby Boomers 4. Development of an appraisal
      using inaccurate or incomplete data about the subject property, the Neighborhood, the Market Area or any comparable
      property used in the appraisal analysis or report
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-4
  canonical_id: fhlmc-5603.4-4
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 603-10 5. Inclusion of references, statements or comparisons
    about crime rates or crime statistics, whether objective or subjective, in the appraisal analysis or report
    6. Consideration of the age or location of a dwelling, or the age of the Neighborhood or census tract where
    the…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '603-10 5. Inclusion of references, statements or comparisons about crime rates or crime statistics,
      whether objective or subjective, in the appraisal analysis or report 6. Consideration of the age or location
      of a dwelling, or the age of the Neighborhood or census tract where the dwelling is located, in a manner that
      has a discriminatory effect 7. Basing the development of an opinion of value on factors that local, State
      or federal law designates as discriminatory 8. Reliance in the appraisal analysis on comparable properties
      that were not personally inspected by the appraiser when required by the appraisal’s scope of work. A personal
      inspection requires at least a visual inspection of the exterior of the comparable property. 9. Reliance in
      any appraisal analysis on inappropriate comparable properties, or the failure to use comparable properties
      that are more similar, or nearer, to the subject property without adequate explanation 10. Use of comparable
      property data provided by any interested party to the transaction without verification by a disinterested
      party 11. Use of inordinate adjustments for differences between the subject property and the comparable properties
      that do not reflect the market’s reaction to such differences, or the failure to make proper adjustments when
      necessary 12. Development of an opinion of value and/or marketability conclusions that is not supported by
      available market data 13. Breach by the appraiser or supervisory appraiser of a certification or Statement
      of Assumptions and Limiting Conditions or comparable statements on any Freddie Mac approved appraisal report
      Note: See Section 5606.3 for additional unacceptable appraisal practices related to electronic appraisal reports.'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-5
  canonical_id: fhlmc-5603.4-5
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: Property Data Collector Independence Requirements and Seller
    engagement of property data collectors (11/06/24) This section contains requirements related to: ■ Seller responsibilities
    ■ Separation of functions'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Property Data Collector Independence Requirements and Seller engagement of property data collectors
      (11/06/24) This section contains requirements related to: ■ Seller responsibilities ■ Separation of functions'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-6
  canonical_id: fhlmc-5603.4-6
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 603-11 (a) Seller responsibilities The Seller is responsible
    for: ■ Complying with the Property Data Collector Independence Requirements ■ Selecting the property data collector
    ■ Complying with the Uniform Property Dataset Freddie Mac does not select or approve individual propert…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '603-11 (a) Seller responsibilities The Seller is responsible for: ■ Complying with the Property
      Data Collector Independence Requirements ■ Selecting the property data collector ■ Complying with the Uniform
      Property Dataset Freddie Mac does not select or approve individual property data collectors or property data
      collector management companies. The Seller, or a third party authorized by the Seller, is responsible for
      approving and selecting the property data collector. The Seller represents and warrants that the property
      data collection complies with Exhibit 42, Property Data Collector Independence Requirements, applicable laws
      and Freddie Mac requirements. (b) Separation of functions The Seller must maintain separation between its
      sales and Mortgage production functions and its property data collection functions.'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-7
  canonical_id: fhlmc-5603.4-7
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: Property data collector qualifications and Seller oversight
    (11/06/24) This section contains requirements related to: ■ Property data collectors ■ Seller oversight of property
    data collectors (a) Property data collectors The Seller, or its authorized third party, must ensure the …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Property data collector qualifications and Seller oversight (11/06/24) This section contains
      requirements related to: ■ Property data collectors ■ Seller oversight of property data collectors (a) Property
      data collectors The Seller, or its authorized third party, must ensure the property data collector: ■ Is independent
      and unbiased and has no present or prospective interest or bias with respect to the transaction, the property
      or the participants to the transaction ■ Completes training in all aspects of property data collection and
      the Uniform Property Dataset (UPD) and passes an exam that evidences proficiency in property data collection,
      and ■ Performs all aspects of a property data collection including, but not limited to:'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-8
  canonical_id: fhlmc-5603.4-8
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 603-12 1. Identifying and reporting, with supporting photographs,
    any: ❑ Property characteristics represented in the UPD; ❑ Design features that impair the use of the subject
    property and cannot easily be changed (e.g., access to a bedroom only through another bedroom, etc.); and…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '603-12 1. Identifying and reporting, with supporting photographs, any: ❑ Property characteristics
      represented in the UPD; ❑ Design features that impair the use of the subject property and cannot easily be
      changed (e.g., access to a bedroom only through another bedroom, etc.); and ❑ Factors adjacent to the subject
      property that are atypical for the location (e.g., power lines, commercial site, industrial site, etc.) 2.
      Measuring the dwelling unit(s) and any other structures on the subject property to produce building sketches
      and floorplans in accordance with the exhibit requirements in Section 5604.2(a)(ii) 3. Collecting a comprehensive
      set of photographs of the subject property, as described in the UPD. (See Section 5604.2(h) for photograph
      requirements.) (b) Seller oversight of property data collectors The Seller, or its authorized third party,
      is responsible for the accuracy and reliability of the PDR and of any data provided by the property data collector
      to the appraiser. The Seller, or its authorized third party, must have in place policies or procedures that:
      ■ Require property data collectors to undergo periodic background checks that include criminal background
      checks; ■ Require property data collectors to complete comprehensive training on preparing an accurate and
      thorough PDR; ■ Require property data collectors to comply with the same customer service standards or code
      of conduct with which employees and/or contractors of the Seller, or its authorized third party, must comply;
      ■ Include a process to continuously evaluate property data collectors, including monitoring and documenting
      performance to identify and remedy any recurring deficiencies and discontinuing the use of chronically underperforming
      property data collectors; and ■ Include a process for providing continuing education when appropriate (e.g.,
      in the event of significant changes to the UPD, the property data collection process, etc.) The Seller must
      include a targeted review of PDRs as part of its quality control sampling. Appraisals completed using a hybrid
      process must also be included in the Seller’s quality control sampling.'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-5603.4-9
  canonical_id: fhlmc-5603.4-9
  section: Freddie Mac Guide 5603.4
  description: '5603.4 Unacceptable appraisal practices: 604-1 Chapter 5604: Appraisal Report Forms, Inspection
    Types, PDRs, Exhibits, Age of Appraisal Reports and PDRs, Appraisal Updates, Appraisal Re-use and Reconciliation
    of Multiple Opinions of Market Value Chapter 5604: Appraisal Reports and PDRs, Exhibits for Appraisal Reports
    an…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §5603.4 — Unacceptable appraisal practices (01/26/26)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '604-1 Chapter 5604: Appraisal Report Forms, Inspection Types, PDRs, Exhibits, Age of Appraisal
      Reports and PDRs, Appraisal Updates, Appraisal Re-use and Reconciliation of Multiple Opinions of Market Value
      Chapter 5604: Appraisal Reports and PDRs, Exhibits for Appraisal Reports and PDRs, Age of Appraisal Reports
      and PDRs, Appraisal Updates, Appraisal Re-use, Reviewing Appraisal Reports, Reconsideration of Value, Subsequent
      Appraisal Reports and Reconciliation of Multiple Opinions of Market Value (Future effective date 11/02/26)'
    drafter_attestation: Verbatim from Freddie Guide §5603.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
