The new Fannie Mae appraisal forms contain a certification that has led to discontent in the appraisal world.

Certification No. 23 of Fannie Mae Form 1004 reads, "The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties."

Real estate appraisers expressed concern that this clause in the new form unfairly broadened their liability. Appraisal organizations, such as the Appraisal Institute, made their voices heard on this matter.

In response to these complaints, Mark Simpson, director of property standards with Fannie Mae, acknowledged that "there may be some confusion in the appraisal community about the distinction between parties who 'use' and parties who 'rely' on appraisal reports."

This led to the issuance of a statement, which was read by Simpson.

"The Intended User of this appraisal report is the Lender/Client," Simpson said as he read the statement. "The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form and Definition of Market Value."

"The use of this additional notice or statement may help to clarify the identification of the Intended User as addressed in the Uniform Standards of Professional Appraisal Practice and on the revised appraisal report forms," Simpson continued. "This statement is consistent with Fannie Mae policies, and we will purchase loans with this additional language in the reports."

"These clarifications help reinforce our view that appraisers are accountable for the quality of their work," Simpson concluded.