Freddie Mac’s New Appraisal Language Standards

Jan 24, 2024 | News

In the dynamic world of real estate financing, staying ahead of changing standards and practices is crucial for lenders, especially those selling loans to Freddie Mac. A recent webinar shed light on important updates and best practices in appraisal language, focusing on eliminating subjective or potentially biased phrases. Here’s what lenders and appraisers need to know as we approach the critical transition date of January 26, 2024.

Understanding the New Appraisal Report Standards

One of the key takeaways from the webinar is the upcoming change in Freddie Mac’s approach to appraisal reports. Starting January 26, 2024, certain ‘Warning’ messages flagged in appraisal reports will be escalated to ‘Fatal’ severity. This change underscores the importance of accuracy and appropriate language in appraisals, as any flagged issues could lead to a significant roadblock in the loan process.

Proactive Steps to Avoid Problematic Language

The webinar covered best practices for avoiding language in appraisals that could be considered subjective or biased. While Freddie Mac has not released a specific list of words or phrases to avoid, the guidance is in line with recent efforts to eliminate bias and discrimination in appraisal reports. Appraisers are encouraged to familiarize themselves with lists and guidelines issued in the past months to ensure compliance.

Preparing for the Transition in Loan Collateral Advisor® and UCDP®

As we approach the transition, it’s vital for lenders and appraisers to understand how to navigate Loan Collateral Advisor® and the Uniform Collateral Data Portal® (UCDP®) effectively. The webinar discussed strategies for preparing for this shift, emphasizing the need to pay close attention to feedback messages and take corrective actions promptly.

Steps for Ensuring Successful Delivery of Appraisals

Ensuring the successful delivery of appraisals under these new standards requires diligence and an understanding of the updated protocols. Appraisers must be meticulous in their choice of language, and lenders need to be vigilant in reviewing appraisal reports for compliance.

Handling Feedback Messages and FAQs

The webinar provided guidance on how to respond when encountering feedback messages in Loan Collateral Advisor or UCDP. In cases where unacceptable words or phrases are identified, the lender will need to contact the appraiser for necessary revisions and resubmit the corrected appraisal to Freddie Mac.


This webinar serves as a crucial reminder for lenders and appraisers of the evolving standards in real estate appraisal language. The shift from ‘Warning’ to ‘Fatal’ severity for certain feedback messages reflects a broader industry movement towards more objective, unbiased, and non-discriminatory appraisal practices. As we move closer to January 26, 2024, staying informed and prepared for these changes is key to ensuring smooth and successful real estate transactions.

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