A July 10 lender bulletin from Freddie Mac says appraisers must be familiar with the local market, select appropriate comparable sales, and certify them as most similar to the property in question.

The bulletin also says appraisers are not required to use distressed properties in their comparable sales analyses unless they represent a good number of the properties on the market.

The bulletin is in response to the new Home Valuation Code of Conduct, which is being criticized for causing a shift among lenders to appraisal management firms outside the local market and for weakening home sales.

Source: Inman News, Matt Carter (07/14/09)