If I receive two 1099-A forms, one for the first mortgage and one for the second mortgage, do I add the FMV of both forms together to get the total FMV for federal tax reporting? Add the two together make the FMV much higher than the actual FMV.

You must use the actual FMV.

If the FMVs on the two 1099-As are different, use the average FMV.