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I get a fair amount of calls asking who orders the appraisal.

Since 2009 the lender is required to order the appraisal. In 2009 the Home Valuation Code of Conduct was enacted by Freddie Mac and the Federal Housing Finance Agency(FHFA).

Effective May 1, 2009 Freddie Mac no longer purchased mortgages from Sellers that do not adopt the Code with respect to single family mortgages delivered to Freddie Mac.

The Lender Requirements

• Prohibits lenders and third parties from influencing or attempting to influence the development, result, or review of an appraisal report.
• Requires lender to ensure that borrowers are provided a copy of the appraisal report no less than three business days prior to closing, unless the borrower waives the requirement. The lender may require the borrower to reimburse it for the cost of the appraisal, but the lender must provide a copy of the appraisal report to the borrower at no additional cost.
• Requires any third party specifically authorized to perform certain actions on behalf of the Seller to be in compliance with the Code.
• Requires lenders or third parties authorized by lenders to be responsible for selecting, retaining, and providing for payment of all compensation to appraisers. The Code does not allow any other third parties to perform these activities.