Key Takeaways from the 2025 Freddie Mac Multifamily Summit on Valuation Standards
In this issue:
- Freddie Mac Multifamily Summit: Here’s what you missed
- New Publications: Valuation Magazine and The Appraisal Journal out now
- NDAA Conference Committee Update: Negotiations moving forward
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Insights
Freddie Mac Multifamily Summit Emphasizes Independence, Rigor, and Clarity in Valuation
More than 100 lenders, underwriters, and appraisers gathered this month at Freddie Mac’s headquarters in McLean, Virginia, for the 2025 Freddie Mac Multifamily Summit—a one-day forum centered on appraisal independence, report credibility, and emerging risks in today’s multifamily market. The Appraisal Institute was represented by Justin Slack, MAI, SRA, AI-GRS, AI-RRS, chair of the AI Government Relations Committee, and Scott DiBiasio, AI Director of Government Affairs.
The program opened with a firm reminder that appraiser independence remains nonnegotiable. Freddie Mac clarified acceptable versus unacceptable interactions between lenders and appraisers and reinforced adherence to USPAP’s Ethics Rule alongside Freddie Mac’s engagement and documentation standards.
A business update from Freddie Mac highlighted a moderate origination pace, driven by tighter credit spreads and persistent operating expense pressures. Appraisers were advised to anticipate heightened scrutiny of income durability, expense normalization, and market-supported capitalization rates as lenders manage thinner margins and greater asset-level variability.
A key session on appraisal revisions underscored the need for greater transparency and consistency. Freddie Mac stressed the importance of using standardized templates and reiterated that:
“All three appraisals in a transaction—the initial appraisal, the appraisal submitted as part of the Full Underwriting Package, and the Final Accepted Appraisal—must be made available, and an Appraisal Revision Summary must be submitted as part of the Full Underwriting Package.”
Freddie Mac’s Financial Crimes and Risk Distribution and Credit teams also shared fraud-prevention insights, focusing on document integrity, data verification, and comparable selection discipline.
During a series of “Quick Hits,” several valuation issues stood out.
Property Taxes Remain An Area of Focus
Freddie Mac noted that many appraisals lack an adequate discussion of property tax reassessment risk and timing. Appraisals should clearly describe the local assessment cycle, including the next scheduled reassessment, and evaluate all tax components—base rates, special assessments, and supplemental taxes.
Capitalization Rate Support Must Be More Robust
Freddie Mac reiterated that credible reports need capitalization rate analyses that:
- Explain the operating characteristics of comparable sales,
- Detail both actual and pro forma rates, and
- Demonstrate an understanding of upside potential for both the subject and comparables.
In the end, Freddie Mac is raising expectations and offering clearer guidance around documentation, transparency, and analytical rigor in multifamily appraisals. These insights provide a valuable roadmap for valuation professionals working to strengthen credibility, independence, and consistency in today’s evolving market.
Your Benefits
Hertz offers special discounts for AI members on daily, weekly, weekend, and monthly rentals for both domestic and international travel.
Upcoming Webinar
Join the WIN Speaker Series with Sara Bronin—December 4
Virtual Event | Free for AI Members
Date: Thursday, December 4, 2025
Time: 10:00–11:00 AM EST
The North Carolina Chapter of the Appraisal Institute invites you to the first installment of the Region V Women’s Initiative Committee (WIN) Speaker Series, featuring Sara Bronin— architect, attorney, and founder of the National Zoning Atlas.
Sara will share the inspiration behind the National Zoning Atlas and highlight her team’s groundbreaking analysis of North Carolina’s 653 zoning jurisdictions. She’ll explore how zoning influences housing and development patterns across the state and discuss what these findings mean for communities, policymakers, and valuation professionals.
Attendees will also have the opportunity to participate in a moderated Q&A and hear directly from one of the leading voices shaping land use policy today.
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Showcasing Approved UAD 3.6 Software Solutions
December 18 • 11:00 a.m. – 12:00 p.m. CT
Join us for a special Appraisal Institute webinar featuring live demonstrations from approved software providers supporting the new 3.6 rollout. This session offers Appraisal Institute members an opportunity to see leading tools in action, better understand their capabilities, and engage directly with the developers shaping the technology behind modern appraisal workflows.
During this one-hour program, two approved software vendors will each provide a 15-minute demonstration of their platforms, highlighting key features, functionality, and benefits for appraisers adapting to the new requirements. Following the demonstrations, a member practitioner will lead a discussion with the presenters, with 15–20 minutes reserved for audience Q&A.
Whether you’re evaluating solutions, preparing for the transition, or simply looking to stay informed about evolving appraisal technology, this interactive session will help you explore your options and ask questions directly to the providers.
Featured Demonstrations:
- Remington Jones, CEO, SFREP
- Jake Lew, Co-Founder & CEO, AIVRE
Date: December 18
Time: 11:00 a.m. CT (1 hour)
Don’t miss this opportunity to gain firsthand insight into emerging tools that support compliance, efficiency, and professional practice in the new 3.6 environment.
Advocacy Updates
What We’re Hearing: NDAA Conference Committee Update
As conference negotiations on the National Defense Authorization Act (NDAA) move forward, housing-related provisions remain very much in play. The Road to Housing legislation is widely expected to be included in the final package, although conferees are still working through which components will ultimately make the cut.
Early indications suggest that the Appraisal Industry Improvement Act, whose key provisions include addressing FHA appraisals and allowing the Appraisal Subcommittee to provide grants to nonprofits such as the Appraisal Institute, stands a strong chance of advancing in the compromise bill. However, the Appraisal Modernization Act, which codifies the GSE’s reconsideration of value guidelines, faces a steeper climb. House Republicans have expressed concerns that the measure lacks bipartisan support and view it as a largely Democratic initiative, making its inclusion less likely at this stage.
Discussions are ongoing and are expected to continue into early December as negotiators work toward a final agreement. We’ll continue to monitor developments closely and provide updates as the process moves forward.
Real Estate Horizons
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More Opportunities to Learn
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Your Community
AI Awards – Nominations Due December 1, 2025
There’s still time to recognize and honor the remarkable members who make a difference in our community. The 2026 Appraisal Institute Annual Conference will serve as the stage for our national awards, where we recognize members whose contributions elevate our profession.
We invite you to take a moment to reflect on colleagues who demonstrate leadership, service, and dedication to our profession. If someone comes to mind who meets the criteria for the J. Scott Robinson Lifetime Achievement Award, Outstanding Service Award, William S. Harps DEI Award, or the Women’s Initiative SPOTLIGHT Award, we warmly encourage you to submit a nomination by December 1, 2025.
Thank you for helping us honor those who make a lasting impact on the Appraisal Institute and the valuation profession.
Pathways to Success Scholarship
Applications for 4th Quarter 2025 are open through December 8th.
Applicants must first complete a PAREA readiness checklist to confirm eligibility for the Scholarship.
The Appraisal Foundation Pathways to Success Scholarship, funded by The Appraisal Foundation, covers 100% of enrollment costs for any AQB-approved PAREA program, including the Appraisal Institute's Licensed Residential and Commercial Residential PAREA Programs. This scholarship is designed to support aspiring appraisers who have completed the prerequisite education in their state where PAREA is approved.
Our weekly newsletter is taking a break next week for the Thanksgiving holiday. We wish you a safe and Happy Thanksgiving!
Team Appraisal Institute
