Freddie Mac Single-Family Seller/Servicer Guide 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs
Freddie Mac Single-Family Seller/Servicer Guide section 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Single-Family Seller/Servicer Guide 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs (part 1 of 2)
4 sections · 6,169 characters of verbatim text. Open a section to read it, or . Every section below is in the page source whether open or closed.
§Refer to Bulletin 2025-7, which announced the policy requirements…468 ch
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. This section contains: ■ Age of appraisal reports and appraisal update requirements ■ Re-use of an appraisal report for a subsequent “no cash-out” refinance transaction ■ Acceptable age of a PDR
aAge of appraisal reports and appraisal update requirements (i)…3,803 ch
(a) Age of appraisal reports and appraisal update requirements (i) Acceptable age of appraisal reports The following age of appraisal requirements must be met: ■ The effective date of the appraisal report must be as described in the following table: Effective Date of appraisal report based on Mortgage offering Mortgage offering Effective date of the appraisal report All Mortgages, except Construction to Permanent Mortgages and Renovation Mortgages No more than 12 months before the Note Date Renovation Mortgages (One-Time Close and Two-Time Close) No more than 12 months before the Effective Date of Permanent Financing Two-Time Close Construction to Permanent Mortgages No more than 12 months before the Effective Date of Permanent Financing One-Time Close Construction to Permanent Mortgages No more than 4 months before the Note Date of the Interim Construction Financing If the effective date of the appraisal report exceeds the time frame in the table above, a new appraisal with an interior and exterior inspection is required. ■ Except for desktop appraisals, if the effective date of the appraisal report is more than 120 days before the Note Date, an appraisal update is required. The effective date of the appraisal update must be no more than 120 days before the Note Date or, for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing. ■ For desktop appraisals, if the effective date of the appraisal report is more than 120 days before the Note Date, a new desktop appraisal is required (ii) Appraisal update reporting requirements Appraisal updates must be reported on Form 442, Appraisal Update and/or Completion Report. ■ If the update indicates that the value of the subject property has not declined, a new appraisal is not required ■ If the update indicates that the value of the subject property has declined, the Seller must obtain a new appraisal, based on either: • An exterior-only inspection reported on the following applicable Freddie Mac form for the property type: ■ Form 2055, Exterior-Only Inspection Residential Appraisal Report ■ Form 466, Exterior-Only Inspection Individual Condominium Unit Appraisal Report • An interior and exterior inspection reported on the following applicable Freddie Mac form for the property type: ■ Form 70, Uniform Residential Appraisal Report ■ Form 70B, Manufactured Home Appraisal Report ■ Form 70H, Uniform Residential Appraisal Report (Hybrid) ■ Form 72, Small Residential Income Property Appraisal Report ■ Form 465, Individual Condominium Unit Appraisal Report ■ Form 465H, Individual Condominium Unit Appraisal Report (Hybrid) ■ Fannie Mae Form 2090, Individual Cooperative Interest Appraisal Report Exception: For Construction to Permanent Mortgages and Renovation Mortgages, if the appraisal update indicates the value of the subject property has declined, the Seller must not obtain a hybrid appraisal report. The original appraiser should perform the appraisal update. If the original appraiser is not available to perform the update, another appraiser may be used. Freddie Mac will accept an appraisal update performed by an unlicensed appraiser or appraiser trainee (or similar classification) if a supervisory appraiser signs the appraisal update. See Section 5604.2(f) for appraisal update exhibit requirements. (iii)Appraisal requirements for Settlement Dates more than 120 days after the Note Date If the Settlement Date is more than 120 days after the Note Date, or for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing, the Seller must warrant that the value of the subject property as of the Settlement Date is not less than the appraised value of the subject property as of the effective date of the appraisal.
bRe-use of an appraisal report for a subsequent “no cash-out”…1,645 ch
(b) Re-use of an appraisal report for a subsequent “no cash-out” refinance transaction An original appraisal report may be used for a subsequent “no cash-out” refinance transaction secured by the Mortgaged Premises, if the following requirements are met: ■ The Borrowers on the refinance transaction must be the Borrowers on the original transaction, unless the original Borrowers are divorced or legally separated. In the event of a divorce or legal separation, the Borrower for the new transaction must be one of the Borrowers on the original transaction and the Mortgage file must document that the Borrower for the new transaction acquired the property through a divorce or legal separation. ■ Since the effective date of the original appraisal report, the Mortgaged Premises must not have undergone any substantial rehabilitation or renovation or been impacted by a disaster if the rehabilitation, renovation or disaster would affect the value, condition or marketability of the Mortgaged Premises ■ The new transaction must be a “no cash-out” refinance ■ The original appraisal report must meet the following requirements: ❑ The effective date of the appraisal report must be no more than 12 months before the Note Date of the subsequent transaction ❑ If the effective date of the appraisal is more than 120 days before the Note Date of the subsequent transaction, an appraisal update is required. The appraisal update must meet all requirements in Section 5604.3(a) and reflect the current Borrower(s) and lender/client. ❑ The lender/client is the Seller or a third party specifically authorized by the lender of the original transaction
cAcceptable age of a PDR The effective date of the PDR is the date…253 ch
(c) Acceptable age of a PDR The effective date of the PDR is the date the data was collected, which must be no more than 12 months before the Note Date. If the effective date of the PDR is more than 12 months before the Note Date, a new PDR is required.
Freddie Mac Single-Family Seller/Servicer Guide 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs (part 2 of 2)
effective date 11/02/26) This section contains: ■ Age of appraisal reports and appraisal update reporting requirements ■ Re-use of an appraisal report for a subsequent “no cash-out” refinance transaction ■ Acceptable age of a PDR for ACE+ PDR and Hybrid Appraisal Reports (a) Age of appraisal reports and appraisal update reporting requirements (i) Acceptable age of appraisal reports The following age of appraisal requirements must be met: ■ The effective date of the appraisal report must be as described in the following table: Effective Date of appraisal report based on Mortgage offering Mortgage offering Effective date of the appraisal report All Mortgages, except Construction to Permanent Mortgages and Renovation Mortgages No more than 12 months before the Note Date Renovation Mortgages (One-Time Close and Two-Time Close) No more than 12 months before the Effective Date of Permanent Financing Two-Time Close Construction to Permanent Mortgages No more than 12 months before the Effective Date of Permanent Financing One-Time Close Construction to Permanent Mortgages No more than 4 months before the Note Date of the Interim Construction Financing If the effective date of the appraisal report exceeds the time frame in the table above, a new Traditional Appraisal Report or Hybrid Appraisal Report is required. Exception: For Construction to Permanent Mortgages and Renovation Mortgages, if the effective date of the appraisal report exceeds the time frame in the table above, a new Traditional Appraisal Report is required. ■ Except for Desktop Appraisal Reports, if the effective date of the appraisal report is more than 120 days before the Note Date, an appraisal update is required. The effective date of the Restricted Appraisal Update Report must be no more than 120 days before the Note Date or, for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing. ■ For Desktop Appraisal Reports, if the effective date of the appraisal report is more than 120 days before the Note Date, a new Desktop Appraisal Report is required (ii) Appraisal update reporting requirements Appraisal updates must be reported on the Restricted Appraisal Update Reports in accordance with the Restricted Appraisal Update Reports Reference Guide (Appendix F2). ■ If the appraisal update indicates that the value of the subject property has not declined, a new appraisal is not required ■ If the appraisal update indicates that the value of the subject property has declined, the Seller must obtain a new appraisal, reported on either: • An Exterior Appraisal Report • A Traditional Appraisal Report • A Hybrid Appraisal Report Exception: For Construction to Permanent Mortgages and Renovation Mortgages, if the appraisal update indicates the value of the subject property has declined, the Seller must obtain a Traditional Appraisal Report or Exterior Appraisal Report. The original appraiser should complete the appraisal update. If the original appraiser is not available to perform the appraisal update, another appraiser may be used. Freddie Mac will accept an appraisal update performed by an unlicensed appraiser or appraiser trainee (or similar classification) if a supervisory appraiser signs the appraisal update. See Section 5604.2(f) for appraisal update exhibit requirements. (iii)Appraisal requirements for Settlement Dates more than 120 days after the Note Date If the Settlement Date is more than 120 days after the Note Date or, for Construction to Permanent Mortgages and Renovation Mortgages, the Effective Date of Permanent Financing, the Seller must warrant that the value of the subject property as of the Settlement Date is not less than the appraised value of the subject property as of the effective date of the appraisal report. (b) Re-use of an appraisal report for a subsequent “no cash-out” refinance transaction An original appraisal report may be used for a subsequent “no cash-out” refinance transaction secured by the Mortgaged Premises, if the following requirements are met: ■ The Borrower(s) on the refinance transaction must be the Borrowers on the original transaction, unless the original Borrowers are divorced or legally separated. In the event of a divorce or legal separation, the Borrower for the new transaction must be one of the Borrowers on the original transaction and the Mortgage file must document that the Borrower for the new transaction acquired the property through a divorce or legal separation. ■ Since the effective date of the original appraisal report, the Mortgaged Premises must not have undergone any substantial rehabilitation or renovation or been impacted by a disaster if the rehabilitation, renovation or disaster would affect the value, condition or marketability of the Mortgaged Premises ■ The new transaction must be a “no cash-out” refinance ■ The original appraisal report must meet the following requirements: ❑ The effective date of the appraisal report must be no more than 12 months before the Note Date of the subsequent transaction ❑ If the effective date of the appraisal report is more than 120 days before the Note Date of the subsequent transaction, an appraisal update is required. The appraisal update must meet all requirements in Section 5604.3(a) and reflect the current Borrower(s) and lender/client. ❑ The lender/client is the Seller or a third party specifically authorized by the lender of the original transaction (c) Acceptable age of a PDR for ACE+ PDR and Hybrid Appraisal Reports The effective date of the PDR is the date the data was collected. For ACE+ PDR, if the effective date of the PDR is more than 12 months before the Note Date, a new PDR is required. For Hybrid Appraisal Reports, if the effective date of the PDR is more than 12 months before the effective date of the appraisal report, a new PDR is required.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 5604.3 — Age of appraisal reports, appraisal update requirements, re-use of an appraisal report for a subsequent transaction and age of PDRs
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