source:
  type: guide
  id: fnma-sel-b4-1.1-02
  authority: Fannie Mae Selling Guide B4-1.1-02 — Lender Responsibilities
  description: Fannie Mae Selling Guide B4-1.1-02 — Lender Responsibilities.
  coverage_tier: operative
obligations:
- id: fnma-sel-b4-1.1-02-full
  canonical_id: fnma-sel-b4-1.1-02-full
  section: Fannie Mae Selling Guide B4-1.1-02 — Lender Responsibilities
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B4-1.1-02 — Lender Responsibilities
    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: 'B4-1.1-02, Lender Responsibilities (06/04/2025) Introduction
      This topic contains information on lender requirements, including: Lender Responsibilities
      Conﬁrmation and Documentation of the Current Owner Objective and Unbiased Appraisals
      Reporting Unfavorable Conditions Uniform Appraisal Dataset (UAD) 3.6 Policy
      Lender Responsibilities The lender is responsible for ensuring that the subject
      property provides adequate collateral for the mortgage. For most loans, Fannie
      Mae requires that the lender obtain a signed and complete appraisal report that
      accurately reﬂects the market value, condition, and marketability of the property.
      Some loans may be eligible for a value acceptance option, and an appraisal is
      not required if the lender exercises the option and complies with the related
      requirements. (See B4-1.4-10, Value Acceptance and B4-1.4-11, Value Acceptance
      + Property Data, for additional information.) If an appraisal is obtained, the
      lender is responsible for providing the borrower disclosures and requirements
      described in B4-1.3-12, Appraisal Quality Matters; compliance with the Appraiser
      Independence Requirements ; selection of the appraiser (see B4-1.1-03, Appraiser
      Selection Criteria); Published May 6, 2026 518 compliance with the Uniform Appraisal
      Dataset (UAD) when applicable (see B4-1.1-06, Uniform Appraisal Dataset (UAD)
      and the Uniform Collateral Data Portal (UCDP)); ensuring the appraiser has utilized
      sound reasoning and provided evidence to support the methodology chosen to develop
      the value opinion, particularly in cases that are not covered by Fannie Mae
      policy; successful submission of the appraisal through the UCDP prior to sale
      of the loan (see B4-1.1-06, Uniform Appraisal Dataset (UAD) and the Uniform
      Collateral Data Portal (UCDP)); continually evaluating the appraiser’s work
      through the quality control process (see B4-1.3-12, Appraisal Quality Matters
      and Subpart D1, Lender QC Process); and ensuring the appraisal does not contain
      subjective and prohibited language relating to discriminatory practices and
      appraisal bias. If the transaction involves property data collection, the lender
      is responsible for compliance with the Property Data Collector Independence
      Requirements ; selection of the property data collector (see B4-1.4-11, Value
      Acceptance + Property Data); successful submission of the data to Fannie Mae''s
      Property Data API prior to loan delivery; and continually evaluating the property
      data collector''s work through the quality control process (see also Subpart
      D1, Lender QC Process). Conﬁrmation and Documentation of the Current Owner Publicly
      available information helps to identify property ﬂipping schemes, which typically
      involve various combinations of transactions and result in a sale of recently
      acquired property for signiﬁcant proﬁt based on a misleading or fraudulent appraisal
      with an inﬂated property value. The lender must conﬁrm that the property seller
      in a purchase transaction (or the borrower in a reﬁnance transaction) is the
      owner of the subject property. Lenders must conﬁrm and document in the loan
      ﬁle that the property seller in a purchase money transaction or the borrower
      in a reﬁnance transaction is the owner of the subject property when an appraisal
      is required. Examples of acceptable documentation include, but are not limited
      to: a copy of a recorded deed, mortgage, or deed of trust, a recent property
      tax bill or tax assessment notice, a title report, a title commitment or binder,
      or a property sale history report. This documentation is especially important
      for transactions involving an assignment (or sale) of a contract for sale and
      back-to-back, simultaneous, double transaction closings, or double escrows to
      support the property acquisition, ﬁnancing, and closing. When the transaction
      is part of an employee relocation, the relocation company may be the assignee
      of the seller, which should be indicated on the sales contract. Additionally,
      the appraiser must comment on this condition in the appraisal report. Objective
      and Unbiased Appraisals A lender must ensure the appraiser Published May 6,
      2026 519 described the property and the market area in factual, unbiased, and
      speciﬁc terms; considered all factors that have an eﬀect on value; and was objective
      and unbiased in the development of the opinion of market value in the appraisal
      report. A number of federal, state, and local laws prohibit discrimination in
      the appraisal of housing. Fannie Mae expects professional appraisers to fully
      understand that discriminatory valuation and appraisal reporting practices are
      not only illegal, but also unethical. Unintentional discrimination can occur
      in the appraisal report as the result of what an appraiser states, or fails
      to state. The lender and appraiser must ensure the appraisal is not in violation
      of any unacceptable appraisal practices (see B4-1.1-04, Unacceptable Appraisal
      Practices). Reporting Unfavorable Conditions The lender must ensure that appraiser
      comments regarding unfavorable conditions, such as the existence of an adverse
      environmental or economic factor, also discuss how the condition aﬀects the
      value or marketability of the property being appraised and explain how the condition
      was taken into consideration in the valuation process. In such cases, the appraiser’s
      analysis must reﬂect and include comparable sales that are similarly aﬀected
      whenever possible. The appraiser must address the impact these factors may have,
      if any, on the value and marketability of the subject property. (See B4-1.3-06,
      Property Condition and Quality of Construction of the Improvements, for further
      information). 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 the Announcements that
      have been issued that are related to this topic. Announcements Issue Date Announcement
      SEL-2025-04 June 04, 2025 Announcement SEL-2024-07 November 06, 2024 Announcement
      SEL-2024-06 September 04, 2024 Announcement SEL-2024-03 May 01, 2024 Announcement
      SEL-2023-07 August 02, 2023 Announcement SEL-2023-02 March 01, 2023 Published
      May 6, 2026 520 Announcements Issue Date Announcement SEL-2021-10 November 03,
      2021'
  judgment: false
