Announcement 2020-045 Exterior Only Report Determination

Announcement 2020-026 COVID-19 Coronavirus Guidance and 2020-038 FHA COVID-19 Coronavirus Guidance provided guidance for temporary flexibilities to permit an exterior-only inspection in certain situations.  Below provides clear instruction for appraisal ordering.


For conventional conforming and FHA appraisal orders, follow the guidance provided in the above two announcements, the COVID-19- Guidance Job Aid and the COVID-19 Quick Reference by Product Job Aid.


  • It is the responsibility of the individual placing the order to choose the correct appraisal type; if an exterior-only inspection is ordered, do the announced flexibilities permit?
    • If an interior-exterior inspection order was originally placed and cannot be performed, verify that the transaction is eligible for an exterior-only inspection. Upon confirmation, you may communicate the change to the AMC, regardless of the original order date.
  • When ordering an exterior-only inspection, be sure to select the appropriate appraisal type. 
  • The AMC will not know if an exterior-only inspection is or is not acceptable per investor requirements.


The following are NOT eligible for an exterior-only inspection and require an interior inspection:

  • cash-out refinance
  • properties subject to Texas Section 50(a)(6)
  • new construction, and
  • a rate and term refinance that is not owned by Fannie Mae or Freddie Mac


Note:  Failure to validate that a loan is eligible for an exterior-only inspection prior to placing a new order and/or changing an existing order will impact loan eligibility.  Exceptions cannot be accommodated when the incorrect appraisal type is ordered and will require a new appraisal report prior to loan approval and closing. 


Please reference the NewRez Lending Library for the changes outlined in this announcement.