Appraisal & Valuation Glossary

Dollar or percentage changes an appraiser applies to a comparable sale's price to account for how it differs from the subject property. Large or unsupported adjustments are a common reason for review findings and revision requests.

Also called: Appraisal management fee

The portion of the appraisal fee an AMC keeps for managing the order, separate from what the appraiser is paid. The appraiser's share must still meet the customary and reasonable fee requirement.

The American National Standard for measuring and calculating square footage in single-family houses, including townhomes. The current edition is ANSI Z765-2021, published by Home Innovation Research Labs. Fannie Mae and Freddie Mac require appraisers to use it for above- and below-grade finished area, with limited exceptions such as condo and co-op units or a state-mandated standard.

A licensed or certified appraiser's written opinion of a property's market value, developed under USPAP. In mortgage lending, the appraisal tells the lender whether the property supports the loan amount. Fannie Mae, Freddie Mac, FHA and VA each set their own requirements on top of USPAP.

What the borrower pays for the appraisal, collected either when it is ordered (after the borrower has received the Loan Estimate and said they intend to proceed) or at closing. It covers the appraiser's fee and, when an AMC is used, the AMC's management fee.

Also called: AMC

A company that manages appraisal orders for lenders: it maintains an appraiser panel, assigns and tracks orders, reviews reports and handles payment. Most AMCs are registered with and supervised by the states where they operate and listed on the Appraisal Subcommittee's AMC Registry; AMCs owned by federally regulated banks are supervised by their federal regulator. Using one is one way lenders keep loan production staff separate from appraisers.

Collecting the appraisal fee from the borrower, often by card when the appraisal is ordered, and paying the appraiser and AMC. Under TRID the fee can't be collected until the borrower has received the Loan Estimate and indicated intent to proceed. Collecting before the appraisal is done reduces the fees lenders write off when loans fall through.

Also called: Appraisal QC

A lender's ongoing program for sampling and re-checking appraisals and appraisers, both before closing and after. It catches recurring problems, supports panel decisions and satisfies investor and regulator expectations.

Checking a completed appraisal for completeness, accuracy, compliance and credibility before the loan moves forward. A desk review is done from the report and data; a field review adds an inspection of the property. Many lenders use automated review tools to flag potential issues so reviewers can focus on exceptions.

Also called: ASC

The federal body, under the FFIEC, that oversees the states' appraiser and AMC regulatory programs. It maintains the National Registries of appraisers and AMCs that lenders use to verify an appraiser's credentials.

Also called: Appraisal portability

Using an appraisal ordered by one lender for a loan with another, for example when a borrower switches lenders mid-process. Whether it's allowed depends on the loan program and the receiving lender's policy.

The rule that no one with an interest in a loan may influence an appraiser's value opinion through coercion, extortion, bribery or intimidation, or by withholding payment or future work because of the value reported. Under the Truth in Lending Act (Regulation Z §1026.42), anyone involved in the loan must report material appraiser misconduct to the state appraiser board, and lenders and their agents must pay fee appraisers a customary and reasonable fee.

Also called: AIR

Fannie Mae and Freddie Mac's requirements for keeping appraisers free of influence on the loans they sell, including separating loan production staff from appraiser selection and communication. Lenders selling to the GSEs must follow AIR in addition to the federal rules.

The list of approved appraisers a lender or AMC assigns orders to, usually organized by coverage area, credentials and performance. Managing a panel means vetting licenses and insurance, tracking quality and turn times, and spreading work fairly.

Also called: Allocation

The rules a lender or AMC uses to decide which qualified appraiser gets each order, such as round-robin, performance-weighted or geography-based assignment. A documented rotation also supports appraiser independence, because loan staff never pick the appraiser.

An "as is" appraisal values the property in its current state. A "subject to" appraisal values it as if repairs, alterations or new construction are finished, so the lender needs proof of completion, usually a completion report, before closing or delivery.

Also called: ACE

Freddie Mac's appraisal waiver: when Loan Product Advisor finds a loan eligible, the lender can deliver it without an appraisal. ACE + PDR adds an on-site property data report.

Also called: AVM

Software that estimates a property's value from public records, sales data and statistical models, with no inspection. AVMs power appraisal waivers, home equity decisions and portfolio monitoring. Under an interagency rule effective October 1, 2025, mortgage lenders and secondary market issuers that use AVMs to value a consumer's principal dwelling must have quality controls that ensure confidence in the estimates, protect against data manipulation, avoid conflicts of interest, require random sample testing and reviews, and comply with nondiscrimination laws.

Also called: BPO

A real estate agent's or broker's estimate of a property's likely sale price. A BPO isn't an appraisal, and federal law bars using one as the primary basis for valuing a consumer's principal dwelling when originating a mortgage to buy it. BPOs are mostly used in servicing, default management and portfolio reviews.

Also called: CU

Fannie Mae's automated appraisal risk assessment. It scores each appraisal from 1 (lowest risk) to 5 (highest) and flags specific risks, and a low enough score can make the loan eligible for relief from representations and warranties on value.

Also called: Comps

Recent sales of similar nearby properties that an appraiser uses to estimate the subject property's value under the sales comparison approach. Differences between each comp and the subject, such as size, condition or location, are accounted for with adjustments.

Also called: Certificate of completion, Form 1004D

A follow-up from the appraiser confirming that the repairs or construction an appraisal was made "subject to" are complete. On the legacy forms this is the Appraisal Update and/or Completion Report (Form 1004D, Freddie Mac Form 442). Under UAD 3.6 that form is retired, and the Completion Report is a separate report linked to the original URAR.

Also called: C1–C6, Q1–Q6

The standardized scales the Uniform Appraisal Dataset uses to describe a home: C1 (newly built, never occupied) to C6 (severe damage or defects that make it unfit for occupancy) for condition, and Q1 (highest) to Q6 (lowest) for construction quality. UAD 3.6 keeps the same scales with rewritten definitions and adds separate interior and exterior ratings alongside the overall rating.

The federal requirement that lenders and AMCs pay appraisers a fee that is customary and reasonable for comparable work in the market where the property is located. It is part of the appraisal independence rules in Regulation Z.

The transaction size at or below which federally regulated banks and credit unions don't need an appraisal for a residential real estate loan and may use an evaluation instead. For residential transactions it is $400,000. It doesn't override GSE, FHA or VA requirements, or Regulation Z's appraisal rule for higher-priced mortgage loans.

An appraisal completed without an inspection: the appraiser works from public records, MLS data, a floor plan and other third-party sources. Fannie Mae and Freddie Mac accept desktop appraisals for eligible loans, so lenders confirm eligibility from the automated underwriting findings before ordering one.

Also called: DU

Fannie Mae's automated underwriting system. Its findings tell the lender which valuation the loan needs, for example a full appraisal, a desktop or hybrid appraisal, or a value acceptance offer.

Also called: Appraisal copy rule

The Equal Credit Opportunity Act requirement (Regulation B §1002.14) that lenders give applicants a copy of every appraisal and other written valuation developed for an application secured by a first lien on a dwelling, promptly on completion or three business days before closing, whichever is earlier. Lenders can't charge for the copies, and must tell applicants about this right within three business days of receiving the application.

Also called: EAD

FHA's portal for submitting appraisals on FHA-insured loans electronically before endorsement. FHA began accepting optional UAD 3.6 submissions through EAD on October 1, 2026, but hasn't set a mandatory date.

Also called: Assignment

The order an appraiser receives for a specific job: the property, intended use and user, scope of work, due date and fee. Under UAD 3.6, lenders describe the assignment by property and inspection characteristics instead of choosing a form number.

A valuation that federally regulated banks may use instead of an appraisal for certain transactions, such as residential loans at or below the $400,000 de minimis threshold. Credit unions use a similar written estimate of market value. Evaluations must still be credible and independent, but they don't have to be prepared by a state-licensed or certified appraiser or follow USPAP.

Also called: Drive-by appraisal

An appraisal in which the appraiser inspects only the outside of the property, typically from the street, and relies on other sources for interior details. Lenders use it where the investor or program allows a reduced inspection scope.

The section of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 that created the framework for real estate appraisal regulation: state licensing and certification of appraisers, federal oversight through the Appraisal Subcommittee, and appraisal requirements for federally regulated lenders.

Also called: Traditional appraisal, Interior and exterior appraisal

An appraisal in which the appraiser personally inspects both the interior and exterior of the property before developing the value opinion. It remains the default scope when a loan isn't eligible for a desktop or hybrid appraisal or for value acceptance.

Also called: GLA

The finished, above-grade living space of a home. Fannie Mae and Freddie Mac require appraisers to measure it using the ANSI Z765-2021 standard, which keeps below-grade and unfinished areas out of the figure, with limited exceptions such as condo units. The GSE guides and the redesigned URAR now call it above-grade finished area; GLA is the legacy term.

Also called: Government-sponsored enterprise

In mortgage lending, Fannie Mae and Freddie Mac: the government-sponsored enterprises that buy conforming loans from lenders. Their selling guides set most of the appraisal requirements lenders follow on conventional loans.

The Regulation Z requirement that a higher-priced mortgage loan be supported by a written appraisal from a certified or licensed appraiser who physically visits the interior of the home. A second appraisal is required on a purchase if the seller bought the home within 90 days and the price is more than 10% higher, or within 91 to 180 days and more than 20% higher. Qualified mortgages and some other loans are exempt.

An appraisal split between two people: a trained property data collector visits the home and captures photos, measurements and condition data, and an appraiser develops the value opinion from that data without going on site. Hybrids can shorten turn times in markets where appraiser capacity is tight.

Also called: LCA

Freddie Mac's tool for evaluating appraisals submitted through UCDP. It returns a risk score and messages on the appraisal, and qualifying scores can provide relief from representations and warranties on value.

Also called: LOS

The software a lender uses to process a mortgage from application to closing, such as ICE Encompass. Integrating appraisal ordering with the LOS keeps order status, documents and fees in the loan file without manual re-keying.

Also called: LPA

Freddie Mac's automated underwriting system. Like Desktop Underwriter, its feedback tells the lender whether the loan is eligible for ACE, ACE + PDR or a reduced-scope appraisal.

The most probable price a property should bring in a competitive, open market, with a typically motivated buyer and seller each acting in their own interest and the property exposed to the market for a reasonable time. It is the value most mortgage appraisals are asked to develop.

Also called: Mortgage Industry Standards Maintenance Organization

The mortgage industry's standards body for data exchange. UAD 3.6 appraisal reports are built on the MISMO v3.6 data model, which is why they are delivered as structured XML alongside a readable PDF.

Also called: PDC

A trained, vetted person who visits a property to capture photos, measurements, a floor plan and condition details for a hybrid appraisal or a value acceptance + property data assignment. A data collector doesn't develop a value opinion; an appraiser or the GSE's models do.

Also called: ROV

A request for the appraiser to re-examine the value opinion, usually raised by the borrower or lender with new information such as additional comparable sales or corrected property facts. Fannie Mae and Freddie Mac require lenders to have a borrower-initiated ROV process and to explain it when the appraisal is delivered, and federal banking regulators issued ROV guidance in 2024. A 2026 federal law also directs FHA, VA, USDA and FHFA to require ROV procedures on federally backed loans.

Also called: Representation and warranty relief

Protection from a Fannie Mae or Freddie Mac repurchase request based on the property's value, granted when an appraisal earns a qualifying Collateral Underwriter or Loan Collateral Advisor result, or when the loan uses value acceptance or ACE. Lenders still warrant other aspects of the loan.

Also called: Stip, Correction request

A request for the appraiser to correct or clarify something in a delivered report, such as a factual error, a missing exhibit or an unexplained adjustment. Unlike a reconsideration of value, a revision doesn't ask the appraiser to revisit the value opinion itself.

Also called: SSR

The feedback report UCDP returns for each appraisal submission. It lists any hard-stop errors that block delivery, warning messages, and the Collateral Underwriter and Loan Collateral Advisor risk scores.

Also called: TPO

A mortgage broker or correspondent lender that originates loans another lender funds or buys. Because brokers may not select or influence the appraiser, the wholesale lender typically orders and manages the appraisal on brokered loans; correspondent lenders, which close loans in their own name, usually order their own.

Under the TILA-RESPA Integrated Disclosure rule, the appraisal fee is usually a zero-tolerance charge because the borrower can't shop for the appraiser. The amount charged at closing can't exceed the Loan Estimate unless a valid changed circumstance supports a revised estimate, and any excess must be refunded within 60 days after closing, so lenders that underestimate the fee absorb the difference.

Also called: Turnaround time

How long an appraisal takes from order to delivered report. Because the appraisal is often on the critical path to closing, lenders track turn time by appraiser, market and product to spot bottlenecks.

The original Uniform Appraisal Dataset, used on the legacy appraisal forms (such as the 1004 and 1073) since 2011. Since the UAD 3.6 mandate, Fannie Mae and Freddie Mac accept new UAD 2.6 reports only from lenders with a temporary policy exception, through May 19, 2027. From March 1, 2027 those reports lose collateral rep and warrant relief, and UAD 2.6 is fully retired for GSE loans on June 28, 2027. FHA still accepts it.

The redesigned Uniform Appraisal Dataset, built on MISMO v3.6. It replaces the legacy appraisal forms with one dynamic Uniform Residential Appraisal Report and moves much of the free-form commentary into structured fields. It is mandatory for new appraisals submitted to Fannie Mae and Freddie Mac on or after November 2, 2026, though lenders granted a temporary GSE exception may submit legacy reports through May 19, 2027.

Also called: UAD

The data standard Fannie Mae and Freddie Mac use for appraisal reports, defining which fields an appraisal contains and how each one is formatted. It lets the GSEs and lenders analyze appraisals as structured data instead of free text.

Also called: UCDP

The joint Fannie Mae and Freddie Mac portal that lenders use to submit appraisal data electronically before a loan is delivered. Each submission returns a Submission Summary Report with hard stops, warnings and the GSEs' risk scores.

Also called: URAR

The appraisal report used for Fannie Mae and Freddie Mac loans. On the legacy forms, URAR meant Form 1004 for single-family homes. Under UAD 3.6 it is a single dynamic report that adapts to the property type, loan type and inspection scope, replacing legacy forms such as the 1004, 1073 and 2055. Lenders order by property and assignment characteristics instead of form number.

Also called: Uniform Standards of Professional Appraisal Practice

The ethical and performance standards for appraisers in the United States, published by the Appraisal Standards Board of The Appraisal Foundation. Federal law requires appraisals for federally related transactions to follow USPAP.

Also called: Appraisal bias

An appraisal or other valuation influenced by a property owner's or neighborhood's race, ethnicity or another protected characteristic. It violates fair lending laws, and lenders address it through review, quality control and a borrower ROV process.

Also called: Appraisal waiver

Fannie Mae's program that lets a lender use the value supplied for the loan, without an appraisal, when Fannie Mae's models are confident in it. Eligibility is offered through Desktop Underwriter. Freddie Mac's equivalent is ACE (automated collateral evaluation).

Also called: Inspection-based appraisal waiver

A Fannie Mae option that pairs value acceptance with an on-site property data collection, so the lender gets an independent look at the home's condition and features without a full appraisal. Freddie Mac offers a comparable option, ACE + PDR (property data report).