Fannie Mae adopts ANSI Standards
Fannie Mae and Freddie Mac are federally backed home mortgage companies created by the United States Congress.
In December 2021, Fannie Mae announced that starting April 1st, 2022, it will require appraisers to measure subject property improvements using ANSI Standard.
The American National Standards Institute (ANSI) is a private non-profit organization that oversees the development of voluntary consensus standards for products, services, processes, systems, and personnel in the United States.
Conventionally, all measurements in the US follow the Imperial Units, i.e. Square Footage area measurements. ANSI standards will set a kind of common standard for measurements, which will remove measurement and comparison ambiguities.
The last four months saw a lot of activity among US Appraisers in trying to understand and adapt to the ANSI Standards, but things have kind of stabilized now.
In India, there is still a fair amount of ambiguity as far as measurement standards are concerned, though RERA specified and defined Carpet Area for all area measurements.
It is important to note that the RERA definition of Carpet Area is different from the IS Standards definition of Carpet Area, which will continue to create ambiguity, where the relevant context is not mentioned / not followed.
It is imperative that India announce and follow a specified standard of measurement, to ensure transparency and impart confidence to the buyers and lenders alike.
Fannie Mae, ANSI and their logos are registered trademarks of their respective bodies. They are used here only for reporting purposes.