Freddie Mac will adopt the ANSI Z765-2021 (American National Standards Institute) measuring standards as of Nov. 2, following the adoption by Fannie Mae last year. Appraisers will be required to use ANSI standards for measuring, calculating and reporting square footage of properties that require an interior and exterior inspection on loans sold to Freddie Mac. “The majority of the time, the appraiser doesn’t know whether the lender is selling the loan to Freddie Mac or to Fannie Mae, so it has been typical practice for appraisers to default to ANSI measuring standards ever since Fannie Mae adopted this requirement in April 2022,” said Michelle Czekalski Bradley, a Pennsylvania certified general appraiser and USPAP instructor. Bradley noted that many in the industry question whether FHA, VA and USDA will adopt mandatory ANSI standards in the future. In the past, Bradley has noted that there isn’t one definitive source for determining square footage of a dwelling. She added, “In my opinion, everyone using different standards of measurement causes confusion to the consumer. And measuring mistakes are one of the top reasons resulting in lawsuits against appraisers.” Freddie Mac has published an ANSI FAQ page on its website. Read more at the PAR JustListed blog.
Source: PAR JustListed; 10/25/2023