Form 70/1004, officially known as the Uniform Residential Appraisal Report (URAR), is a standardized form designed by Freddie Mac and Fannie Mae (the GSEs), and it’s often the required reporting format for a residential appraisal report. When an appraiser signs an appraisal report communicated on the Freddie Mac Form 70, what obligations are inherent in that signature? 

The appraiser’s signature not only indicates accepting responsibility for the opinions and conclusions in the appraisal report, but it also indicates compliance with the following: 

  • Scope of Work.
  • Statement of Assumptions and Limiting Conditions.
  • Appraiser’s Certification. 

The URAR contains the following restrictions on page 4: 

Modifications, additions, or deletions to the intended use, intended user, definition of market value or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser’s continuing education or membership in an appraisal organization, are permitted. 

The appraiser may not modify, via addition or deletion, the assumptions and limiting conditions. Only very specific types of additional certifications may be added. The scope of work may exceed the scope of work described in Form 70 but cannot be less. We’ve received inquiries around the language used in the form, and if there’s flexibility to more broadly interpret certain sections. Let’s review a few commonly asked questions.

Q1. Is it acceptable for an appraiser to sign Form 70 (as the appraiser) when they have not inspected both the interior and exterior of the subject property?

A: No. The first certification item requires the appraiser to certify adherence to the scope of work requirements stated in the report. Those requirements include inspection of the interior and exterior of the subject property. The second certification item requires the appraiser to certify that they’ve inspected the interior and exterior of the property.   

An appraiser who signs in the appraiser signature block without inspecting the interior and exterior of the subject property has not met the minimum scope of work required and is delivering an appraisal report with false certifications.

Q2. If an appraiser did not inspect the interior and exterior of the property, is it acceptable to sign as the appraiser and add a clarifying certification noting the person who did the inspection?

A: No. As noted on Form 70, only certain types of certifications may be added. As also noted, the scope of work must include at least an interior and exterior inspection by the appraiser.

Q3. In a hybrid appraisal assignment, the appraiser relies on information collected by another party. Why is that not allowed when using Form 70?

A: Hybrid appraisal reports are completed on Form 70H, which has a different certification and scope of work statement, and is specifically designed for hybrid appraisal assignments. It’s not acceptable to use Form 70 for any appraisal assignment where the scope of work did not include inspection of the interior and exterior of the subject property by the appraiser.

Q4. What is Freddie Mac doing when they find violations?

A: Concerns in appraisal report development can range from simple inconsistency to patterns and trends that may introduce risk to Freddie Mac. For minor concerns, the Appraiser Quality Monitoring (AQM) team will typically message appraisers directly and share feedback as an educational opportunity. For more serious concerns, such as intentionally misleading the reader by signing a certification that represents an action other than one taken by the appraiser, we view this misleading behavior as a Uniform Standards of Professional Appraisal Practice (USPAP) violation. The issues are identified and then reported to the respective state agency for further action.