Hello everybody my name is John Malozsak and welcome back to Suburban Snacks. This month’s snack is…candy corn! In this episode, we’ll be informing you of the new decision by the FHFA to make desktop appraisals a permanent option. So first off, what is an appraisal? According to Inman, an appraisal is the estimation of a home’s current market value. A licensed appraiser completes this estimation by comparing recent home sales. The appraiser views the home in person so they can consider the features in their evaluation. But starting in early 2022, the physical presence of an appraiser will no longer be needed. Take note this is only applicable to qualifying Fannie Mae – or Freddie Mac – backed mortgages. According to Realtor Magazine, these enterprises will now use public records, including listings and tax appraisals, to process desktop appraisals. So understand that they are not getting rid of the appraisal process. After all, an appraisal is what protects the lender’s money. If the borrower defaults on their loan, the lender wants to make sure that they can sell the property and recuperate their money. The desktop appraisal was introduced at the start of the pandemic. And now it seems as though it will become a permanent option.