The servicer must obtain a property valuation, which must not be more than 90 days old at the time the servicer evaluates the borrower for the mortgage loan modification, using one of the following:
- an exterior BPO;
- an appraisal;
- Fannie Mae's APS;
- Freddie Mac's AVM;
- a third-party AVM; or
- the servicer's own internal AVM, provided that
- the servicer is subject to supervision by a federal regulatory agency, and
- other servicer's primary federal regulatory agency has reviewed the model.
If Fannie Mae's APS, Freddie Mac's AVM, the third-party AVM, or the servicer's internal AVM does not render a reliable confidence score, the servicer must obtain an assessment of the property value utilizing an exterior BPO, an appraisal, or a property valuation method documented as acceptable to the servicer's federal regulatory supervisor. The property value assessment must be rendered in accordance with the FDIC's Interagency Appraisal and Evaluation Guidelines regardless of whether such guidelines apply to mortgage loan modifications.
The servicer must attach the valuation and documentation when submitting its proposed recommendation to Fannie Mae through its servicing solutions system.
For more information see Servicing Guide F-1-28, Processing a Fannie Mae Flex Modification.