Enhanced Appraisal Requirements

Overview

Correspondents must carefully review appraisals to ensure that the value is supported. A field review may be required if the underwriter feels that the market value may be overstated. In order to improve quality and, ultimately, performance of the Mortgages we purchase, PennyMac is providing further guidance on appraisal review. While the following policy outlines specific triggers for additional review and investigation, it is the responsibility of the Correspondent to employ additional measures, whenever necessary, to validate an appraisal.

General Desk or Field Review Criteria

Correspondents are encouraged to use the resources available to determine market trends and obtain public record data. These resources include, but are not limited to:

  • S&P/Case-Shiller Home Price indices
  • Office of Federal Housing Enterprise Oversight (OFHEO) Index
  • National Association of Realtors (NAR) statistics on changes in median prices
  • LandSafe’s ValueFinder (with public record data)
  • First American CoreLogic - History Pro
  • DataVerify