Newz: Fannie Mae’s Selling Guide Updates, Appraisers and Certainty in Mortgage Lending
November 14, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA: Conflicting Assignments and Professional Ethics
- Beyond Terminology: What Fannie Mae’s Selling Guide Updates Mean for Appraisers
- Genius’ Midcentury Modern Home Designed by Jimi Hendrix’s Studio Architect Lists in Woodstock for $3.5 Million
- App-solutely Clueless: When Sales Tries to School Appraisers
- Trump Defends 50-Year Mortgage Plan as ‘Not a Big Deal’ After Furious Backlash
- The Strategic Advantage of Certainty in Mortgage Lending What it means for appraisals
- MBA: Mortgage applications increased 0.6 percent from one week earlier
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Changes to Fannie Selling Guide dated April 15, 2014
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Beyond Terminology: What Fannie Mae’s Selling Guide Updates Mean for Appraisers
by Scott DiBiasio, Director of Government Affairs, Appraisal Institute
Excerpts: Fannie Mae recently issued important updates to its Selling Guide that may look like technical revisions but have significant implications for appraisers, consumers, and the valuation profession. The most visible changes involve the retirement of the term “appraisal waiver” in favor of “value acceptance” and adjustments to the Reconsideration of Value (ROV) process. Together, these changes reflect the GSEs’ modernization priorities—but also highlight the ongoing tension between efficiency and transparency.
From “Appraisal Waiver” to “Value Acceptance”
Fannie Mae has decided to eliminate the term “appraisal waiver” from the Selling Guide, replacing it entirely with “value acceptance.” Even the parenthetical “(appraisal waiver)” has been removed. The stated goal is to unify industry language and create consistency across the valuation spectrum.
That may sound harmless, but let’s be clear: the average consumer is not going to recognize that “value acceptance” means their lender has waived an appraisal altogether. That lack of clarity undermines transparency at a critical stage of the lending process.
The Appraisal Institute (AI) will absolutely continue to call these products what they are: appraisal waivers. Language matters. Consumers and appraisers alike deserve accuracy, not euphemisms, when it comes to understanding whether an independent appraisal has been performed.
Why This Matters for Appraisers
Taken together, the Selling Guide updates and the expansion of waiver-based models point to several key takeaways:
1. Language shapes perception. If consumers don’t recognize that value acceptance is an appraisal waiver, transparency suffers. That’s why AI will continue to call these products by their true name.
2. Efficiency is not clarity. Simplifying disclosures may ease compliance for lenders, but it risks reducing borrower awareness of their rights.
3. Modernization is accelerating. With waivers, UPDs, and hybrid appraisals expanding, appraisers must adapt their skills to remain at the center of the valuation process.
4. Incursion is real. Regulators, property data collectors, and third-party vendors are positioning themselves between appraisers and their clients. The profession cannot afford to cede ground.
To read more, Click Here
My comments: I had never read about what is discussed in this article. I don’t always read the Fannie Selling Guide Updates. Now I know why it is important.
When I wrote my article on Appraisal Regulatory Chaos in the monthly Appraisal Today newsletter, Scott let me include excerpts from what he has written about it plus sent me new information. This article has a few “promotional” comments about AI and classes, but well worth reading.
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Genius’ Midcentury Modern Home Designed by Jimi Hendrix’s Studio Architect Lists in Woodstock for $3.5 Million
Excerpts: 4 bedrooms, 3.5 baths, 3,151 sq.ft., 8.75 Acre lot, Built in 1969
True to that tradition, the home itself was designed to foster creativity and—much like Hendrix’s studio—was carefully crafted with awe-inspiring acoustics meant to amplify music and sound.
“The most impressive thing about the house is that it’s not just boxes and rooms like some midcentury homes; this home is an experience,” said listing agent Sharon Breslau of Creative Living.
Known for designing audio/video production facilities for A-list entertainers, including private studios for the likes of Whitney Houston and Bob Marley, Storyk made a prominent name for himself not only for his architectural precision, but for his unique method of combining natural harmony through the use of space and sound.
Also found on the 8.75-acre property are a pond, heated in-ground saltwater pool, and guest/pool house.
“The pool house is an amazing building,” Breslau said. “It has these big open, vaulted ceilings, a bathroom that can be accessed from inside and outside, and a floor-to-ceiling fireplace.”
There are also town-approved plans to build a separate structure on the property, complete with private septic and driveway.
To read more, Click Here
To see the listing with an aerial view and 46 photos, Click Here
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Clueless: When Sales Tries to School Appraisers
By Dave Towne
Excerpts: Appraisers, this bit of news about a new bias checking app fluttered across my office floor the other day, causing me to trip.
From the article: “…eliminate home appraisal bias, which happens when Black homeowners’ properties or properties in predominately Black neighborhoods are valued less than comparable properties owned by white households or in primarily white neighborhoods.”
This new electronic theoretical bias checker was developed by three women in Philadelphia, who ARE NOT appraisers. Instead, they are employed in real estate (agent/broker?), banking (real estate lending?), and finance (real estate loans?) businesses. Notice that these are ‘sales related’ functions.
Here’s what this app is designed to do:
“The WEALTH Collective created an app that lets people upload their property appraisals and determine whether their properties may be undervalued. The platform flags bias and generates a report people can take to their lender to appeal incorrect appraisals.”
If the ladies are successful in actually implementing their mission, you appraisers in Philly (and perhaps elsewhere) could be subjected to this new requirement:
“The WEALTH Collective also plans to create a certification course for appraisers that it hopes will one day be required for professionals who want to work in the city.”
What these ladies apparently don’t know is ‘anti-bias education’ is already mandated by the AQB, so their new ‘certification course’ is not needed.
To read more, Click Here
To read the original article, Click Here
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What is new in the New URAR/UAD 3.6
In the June 2025 issue of Appraisal Today
Excerpts: I went through all the pages in the Single Family SF-1 Report, starting on Page 9 of the newsletter. (NOTE: some information may have changed since June 2025) F-1 is a large text file with Fannie’s data field explanations.
Information and my comments by page in the SF-1 Report used in this article.
PAGE 1
Appraiser and AMC Fee – not in the sample report
In certain jurisdictions, the appraiser is required by law to disclose the fee charged by the appraiser and the Appraisal Management Company (AMC) if applicable. If not populated, this information does not display.
Property address. Top of page. Use F-1 and search for property address if it is not a standard USPS address, more than one address, etc.
Assignment Reason
Search F-1 to see the full list of lender reasons
PAGE 2
Property Valuation Method.
Traditional Appraisa1
Hybrid Appraisal
Desktop Appraisal
Exterior Appraisal
Property Description – Construction Method
Container
Manufactured
Modular
On-Frame Modular
Site Built
3D Technology
Other (Describe)
If there are multiple dwellings, or multiple Construction Methods for a
dwelling, all display here.
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Trump Defends 50-Year Mortgage Plan as ‘Not a Big Deal’ After Furious Backlash From MAGA Base
By Keith Griffith, Realtor.com
November 11, 2025
President Donald Trump has shrugged off criticism from fellow conservatives over his proposed 50-year mortgage, saying “all it means is you pay less per month.”
After Trump floated the idea over the weekend as a solution to the affordability crisis, it drew furious backlash even from his supporters, who pointed out that the small reduction in monthly payments would come with a massive increase in total interest paid over the life of the loan.
Recent data showed that the typical age of first-time homebuyers hit an all-time high of 40 this year, up from 33 just five years ago, as soaring costs push many young families out of the market to buy a home.
However, the suggestion of a 50-year mortgage, an idea championed by Trump’s top mortgage regulator Bill Pulte, was met with backlash even among Trump’s staunch supporters.
To read more, Click Here
My comments: Very controversial. Good graphics in the article.
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The Real Cost of Errors: Extended Appraisal Turn Times and The Correction Cycle
Even more painful than a slow turn time are the process delays and uncertainty which can be caused by the collateral underwriting process. Cotality data indicates that nearly half of all appraisals are reworked, the majority for preventable revisions or clarifications. Regardless of the reason, this revision cycle can take hours, more often days. Far more impactful than the time to resolve is the frustration, closing risk, and elevated operational cost that accompanies the revision request, it often being a last-minute condition to approve, close or fund.
Fixing a defect late in the process is exponentially more expensive: the adage applies, if you fix something at the beginning, the cost is $1; if you fix it a week later, it costs $10; if you fix it 2 weeks later, it costs $100. Revisions resulting from inaccurate or incomplete property information provided during the initial loan application process—and subsequently communicated to the appraiser—may adversely affect a lender’s ability to establish initial certainty.
Furthermore, such errors or revisions can complicate loan approval or collateral eligibility, adding downstream loan salability or repurchase risk for lenders, and when representations and warranties (R&W) relief is misunderstood or lost due to preventable mistakes or incorrect assumptions, lender uncertainty and risk increase significantly.
To read more, Click Here
My comments: Cotality’s previous name was CoreLogic. They own a la mode. I set up my emails to a la mode with the new addresses with cotality instead of alamode. Hard to break an old habit!
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HOW TO USE THE NUMBERS BELOW. Appraisals are ordered after the loan application. These numbers tell you the future for the next few weeks. For more information on how they are compiled, Click Here.
Note: I publish a graph of this data every month in my paid monthly newsletter, Appraisal Today. For more information or get a FREE sample go to www.appraisaltoday.com/order Or call 510-865-8041, MTW, 7 AM to noon, Pacific time.
My comments: Rates are going up and down. We are all waiting for rates to drop lower in 2025.
Mortgage applications increased 0.6 percent from one week earlier,
WASHINGTON, D.C. (November 12, 2025) — Mortgage applications increased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 7, 2025.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1 percent compared with the previous week. The Refinance Index decreased 3 percent from the previous week and was 147 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 6 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 31 percent higher than the same week one year ago.
“Purchase applications picked up almost 6 percent over the week to the strongest pace since September, despite mortgage rates increasing slightly, with the 30-year fixed rate rising to 6.34 percent,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Purchase applications for conventional, FHA, and VA loans increased, as potential homebuyers continue to shop around, particularly in markets where inventory has increased and sales price growth has slowed. Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022.”
Added Kan, “Higher mortgage rates did quell some refinance activity, as conventional and VA refinance applications declined over the week, and the average loan size for refinances dropped to its lowest level in over a month.”
The refinance share of mortgage activity decreased to 55.6 percent of total applications from 57.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.8 percent of total applications.
The FHA share of total applications increased to 19.4 percent from 18.5 percent the week prior. The VA share of total applications decreased to 14.8 percent from 14.9 percent the week prior. The USDA share of total applications decreased to 0.2 percent from 0.3 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($806,500 or less) increased to 6.34 percent from 6.31 percent, with points increasing to 0.62 from 0.58 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $806,500) increased to 6.46 percent from 6.43 percent, with points increasing to 0.38 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.14 percent from 6.13 percent, with points increasing to 0.76 from 0.73 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.70 percent from 5.65 percent, with points increasing to 0.64 from 0.61 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 5.50 percent from 5.56 percent, with points decreasing to 0.85 from 0.86 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The survey covers U.S. closed-end residential mortgage applications originated through retail and consumer direct channels. The survey has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks, thrifts, and credit unions. Base period and value for all indexes is March 16, 1990=100.
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Ann O’Rourke, MAI, SRA, MBA
Appraiser and Publisher Appraisal Today
1826 Clement Ave. Suite 203 Alameda, CA 94501
Phone: 510-865-8041
Email: ann@appraisaltoday.com
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