Fannie Mae Freddie Mac 1094 selling guide

Freddie Mac Officially Eliminates 1004MC Requirement

On August 29, Freddie Mac released Bulletin 2018-13 which officially confirmed what almost everyone had already suspected—they are following Fannie Mae’s lead in eliminating the requirement for appraisers to include the 1004MC (Freddie Mac Form 71) as an attachment to appraisal reports.  

In the Bulletin, Freddie stated: “As part of our appraisal modernization efforts, we are no longer requiring that Form 71, Market Conditions Addendum to the Appraisal Report, be provided with all appraisal reports. The expected scope of work is not changing as the appraiser is still required to perform the analysis necessary to report and consider neighborhood and market conditions. If Sellers continue to require the use of Form 71, we will accept the form and there will be no operational impact.” [Note: the term “Sellers” refers to originating lenders who sell loans to Freddie Mac, not property sellers.] 

For appraisers, the two most important things to note are:

  1. Freddie still expects the appraiser to perform analysis of the neighborhood and market conditions.
  2. Lenders may still require appraisers to use this form if they wish.

There is no word yet regarding whether HUD/FHA and VA plan to remove their requirements to use the 1004MC. When and if additional announcements are made, McKissock will keep the appraisal community informed.   

A link to Bulletin 2018-13 may be found here: