“It’s broken down by section so there are pictures of the comparables so you can easily read it and things are more specific. So, if there’s an ADU (accessory dwelling unit) on the property, you’d be able to pull in those fields,” she added.
In addition, Lynn said, the report’s previous pages of addenda will be replaced by commentary that’s relevant to each section of the report.
The only time bias and discrimination was mentioned was when she said, “We have updated the certification language around bias and discrimination. They’ve been broken out into five different certifications.”
She did not describe what those certifications meant.
Late last year, the FHFA, in a detailed blog piece, provided examples of biased and discriminatory language in appraisals, saying it could be reduced if “more objective free-form text narratives” were used, an approach supported by Freddie Mac.
In its June 2021 Appraisal Update, Fannie Mae provided examples of appraisal phrases it considers “problematic” along with ways it suggests the same information could be described without bias.
The panel’s other topic was the Supplemental Consumer Information Form (SCIF), which the FHFA requires lenders to use for mortgages that are sold to the GSEs.
The purpose of the SCIF, said Rivoal, is to collect information about a prospective borrower’s language preference and any homebuyer education or housing counseling they received.
This will help lenders better understand a prospective borrower’s needs, she said, and lenders will also be required to keep a copy of the SCIF.