Freddie Mac Single-Family Seller/Servicer Guide §5605.9 — Special property appraisal requirements (01/26/26)
Freddie Mac Guide §5605.9 (Special property appraisal requirements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §5605.9 — Special property appraisal requirements (01/26/26) — 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 Guide 5605.9
(01/26/26) 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 Section 5605.10. This section contains appraisal requirements related to: ■ 2- to 4-unit properties ■ Condominium Units ■ Manufactured Homes ■ Leasehold estates ■ Cooperative Share Loans (a) 2- to 4-unit properties The following requirements and guidelines apply to completing Form 72, Small Residential Income Property Appraisal Report, for 2- to 4-unit properties. (i) Comparable rent data for 2- to 4-unit properties At least three comparable rentals must be analyzed in the “comparable rental data” section. The comparable rentals must: ■ Have current rental information ■ Be units similar to, and located near, the subject property The appraisal report should state that the units and properties selected as comparable rentals are comparable to the subject property (both the units and the overall property)
Freddie Mac Guide 5605.9
605-57 and should accurately represent the rental market for the subject property unless otherwise stated in the report. (ii) Rent schedule for 2- to 4-unit properties The rent schedule section contains the subject property’s current actual rents and the estimated market rents. The estimated market rents for the subject property must be supported in the appraisal report and must be consistent with the data presented throughout the report. (iii) Sales comparison approach for 2- to 4-unit properties The appraisal report must contain the unadjusted units of comparison for each comparable sale. The units of comparison are: ■ Sales price per square foot of gross building area ■ Sales price per unit ■ Sales price per room ■ Gross rent multiplier For purchase transactions, the appraisal report must also contain the units of comparison for the subject property. In the comment area of the sales comparison analysis, the appraisal report must include a reconciliation of the adjusted sales prices and the unadjusted units of comparison, as appropriate, in the same way properties are sold in the Market Area. The appraisal report must include commentary that describes the factors that are deemed most relevant by typical investors or purchasers in the Market Area when purchasing a similar property. (b) Condominium Units See Section 5701.8(a) for additional appraisal requirements for units in Condominium Projects. (c) Manufactured Homes See Section 5703.9 for additional appraisal requirements for Manufactured Homes.
Freddie Mac Guide 5605.9
605-58 (d) Leasehold estates See Section 5704.2 for additional appraisal requirements for leasehold estates. (e) Cooperative Share Loans See Chapter 5705 for additional appraisal requirements for Cooperative Units.
Freddie Mac Guide 5605.9
Requirements for properties subject to completion or inspection (Future effective date 11/02/26) This section contains requirements related to: ■ Verifying completion for new or proposed construction ■ Verifying completion for an existing property ■ Appraisal reports or PDRs requiring an inspection (a) Verifying completion for new or proposed construction For appraisal reports of new or proposed construction (i.e., the construction has not started and the description of construction to be completed is based on plans and specifications and/or similar documentation) that are subject to completion, Freddie Mac will accept one of the following to verify completion of the subject property: ■ A UAD Completion Report, prepared by an appraiser documenting the property has been completed in accordance with the plans and specifications: ❑ Freddie Mac will accept a completion report prepared by an unlicensed appraiser or appraiser trainee (or similar classification) if a supervisory appraiser signs the completion report ❑ The completion report may be based on an on-site visual inspection or by using technology to perform a virtual inspection of the subject property to evidence completion ■ Form 400, Warranty of Completion of Construction or Repairs/Alterations, or other substantially similar form, signed by the Borrower and the builder confirming the subject property has been completed in accordance with the plans and specifications: ❑ By delivering the signed completion form to Freddie Mac, the Seller represents and warrants the subject property has been completed in accordance with the plans and
Freddie Mac Guide 5605.9
605-59 specifications and there were no material or significant changes to the plans and specifications after completion of the appraisal report ❑ If the Seller is unable to obtain Form 400 signed by both the Borrower and builder, then a UAD Completion Report completed by the appraiser is required The following table describes the completion verification requirements for appraisal reports subject to completion per plans and specifications:
Freddie Mac Guide 5605.9
605-60 Verifying completion for appraisal reports subject to completion per plans and specifications Report or form Requirements for verifying completion UAD Completion Report The completion report must: ■ Be completed in accordance with the Completion Report Reference Guide (Appendix F-3) ■ Include photographs that clearly identify completion of construction. If the subject property was incomplete at the time of inspection, additional photographs may be required (See Section 5604.2(g) for photograph requirements.) ■ Be dated before the Settlement Date, unless the requirements for incomplete improvements (Section 5601.3) or GreenCHOICE Mortgages® (Section 4606.3(a)) have been met ■ Be signed by the appraiser ■ Be retained in the Mortgage file Form 400, Warranty of Completion of Construction or Repairs/Alterations, or other substantially similar form The completion form must: ■ Include photographs that clearly identify completion of construction If the subject property was incomplete at the time of inspection, additional photographs may be required (See Section 5604.2(g) for photograph requirements.) ■ Be dated before the Settlement Date, unless the requirements for incomplete improvements (Section 5601.3) have been met ■ Be signed by the Borrower and the builder ■ Be retained in the Mortgage file ■ Not be used for GreenCHOICE Mortgages
Freddie Mac Guide 5605.9
605-61 (b) Verifying completion for an existing property (i) Appraisal reports subject to repairs or alterations For appraisal reports of existing properties that are subject to repairs or alterations, Freddie Mac will accept one of the following to verify completion: ■ A UAD Completion Report prepared by an appraiser documenting the repairs or alterations identified in the appraisal report have been completed: ❑ Freddie Mac will accept a completion report prepared by an unlicensed appraiser or appraiser trainee (or similar classification) if a supervisory appraiser signs the completion report ❑ The appraiser may complete a UAD Completion Report by performing an on-site visual inspection or by using technology to perform a virtual inspection of the subject property to evidence completion. Virtual inspections using technology must not be used to verify completion for CHOICERenovation Mortgages. ■ Form 400 or other substantially similar form, signed by the Borrower confirming the required repairs or alterations identified in the appraisal report have been completed. By delivering the signed completion form to Freddie Mac, the Seller represents and warrants the repairs or alterations have been completed. ■ PDR Completion Report, prepared by a property data collector, attesting the repairs or alterations identified in the appraisal report have been completed ❑ The property data collector must complete the PDR Completion Report by performing an on-site visual observation of the subject property to verify completion ❑ The PDR Completion Report may be used only with a Hybrid Appraisal Report The following table describes the completion verification requirements for appraisal reports subject to repairs or alterations:
Freddie Mac Guide 5605.9
605-62 Verifying completion for an existing property – appraisal reports Report or form Requirements for verifying completion UAD Completion Report The completion report must: ■ Be completed in accordance with the Completion Report Reference Guide (Appendix F-3) ■ Include photographs that clearly identify the completion of repairs or alterations ■ Be dated before the Settlement Date unless requirements for GreenCHOICE Mortgages or CHOICERenovation® Mortgages, as described in Sections 4606.3(a) and 4607.8, respectively, have been met. ■ Be signed/attested by the appraiser ■ Be retained in the Mortgage file Form 400, Warranty of Completion of Construction or Repairs/Alterations, or other substantially similar form The completion form must: ■ Include photographs that clearly identify the completion of repairs or alterations ■ Be dated before the Settlement Date ■ Include either: ❑ A signed report from the professional that completed the work, or ❑ Paid invoice(s) for the repairs or alterations ■ Be signed/attested by the Borrower(s) ■ Be retained in the Mortgage file ■ Not be used for GreenCHOICE Mortgages or CHOICERenovation Mortgages
Freddie Mac Guide 5605.9
605-63 PDR Completion Report (May be used only with a Hybrid Appraisal Report) The completion report must: ■ Contain the data points and certifications in the PDR Completion Report data set (Exhibit 39, Completion Report Data Set) ■ Include photographs that clearly identify the completion of repairs or alterations ■ Be dated before the Settlement Date ■ Be signed/attested by the property data collector ■ Be retained in the Mortgage file (ii) ACE+ PDR when the Seller’s review of the PDR determines required repairs or alterations For ACE+ PDR when the Seller’s review of the PDR determines there are required repairs or alterations, Freddie Mac will accept one of the following to verify completion: ■ PDR Completion Report, prepared by a property data collector, attesting that the subject property has been completed in compliance with the required repairs or alterations. The property data collector must complete the PDR Completion Report by performing an on-site visual observation of the subject property to verify completion. ■ Form 400, or other substantially similar form, signed by the Borrower confirming completion of repairs or alterations identified in the PDR. By delivering the signed completion form to Freddie Mac, the Seller represents and warrants the repairs or alterations have been completed. The following table describes the completion verification requirements for PDRs when the Seller’s review determines repairs or alterations:
Freddie Mac Guide 5605.9
605-64 Verifying completion for PDRs when the Seller’s review determines repairs or alterations Report or form Requirements for verifying completion PDR Completion Report The completion report must: ■ Contain the data points and certifications in the PDR Completion Report data set (Exhibit 39) ■ Include photographs that clearly identify the completion of repairs or alterations ■ Be dated before the Settlement Date ■ Be signed/attested by the property data collector ■ Be retained in the Mortgage file Form 400, Warranty of Completion of Construction or Repairs/Alterations, or other substantially similar form The completion form must: ■ Include photographs that clearly identify the completion of repairs or alterations ■ Be dated before the Settlement Date ■ Include either: ❑ A signed report from the professional who completed the repairs or alterations, or ❑ Paid invoice(s) for the repairs or alterations ■ Be signed/attested by the Borrower ■ Be retained in the Mortgage file ■ Not be used for GreenCHOICE Mortgages or CHOICERenovation Mortgages (c) Appraisal reports or PDRs requiring an inspection For appraisal reports that are subject to an inspection of the property or PDRs when the Seller’s review determines an inspection is required, a licensed professional or other person trained in the particular field of concern (e.g., structural engineer, plumber, pest inspector) must perform the inspection of the property. The Seller must obtain either: ■ An inspection report stating that repairs are not required (i.e., Seller reviews to ensure property does not have deficiencies consistent with a C5 or C6 condition rating), or