Fannie Mae: Appraisals are no longer the default option: Value Acceptance replaces Appraisal Waiver
Fannie Mae updated its Selling Guide on March 1 to include more options for property valuations, saying that they are “moving away from implying that an appraisal is a default requirement.” Those options include value acceptance (formerly appraisal waivers), value acceptance plus property data and hybrid appraisals.
Fannie Mae – No Appraisals Required – The End of Appraisers?
Hamp Thomas 12 minute video – my favorite commentary on this issue!
Fannie Mae took a direct shot at appraisers today with the announcement of changes in their Selling Guide. Two options for the future, both of which do great harm to the appraisal industry.
First, “third party” inspections. Appraisal trainees aren’t good enough, so now we will have unlicensed inspectors going through the homes of unsuspecting homeowners. And, with this inspection a traditional appraisal is no longer a requirement for the mortgage loan.
Secondly, the 3rd party inspection is sent to a licensed appraiser. FNMA wants an appraiser’s signature so the appraiser can be held responsible if there’s any problem in the future. Both options say they are good for consumers and both options are filled with fabrications and misinformation. At the end of it all, it’s about control and profits. Why trainees can’t provide the data is simply because big banking and AMC’s don’t make profit from the inspection part of the process.
If appraisers don’t stand up and say no, right now, the running joke of the appraisal industry could be gone in five years; well, it just very well may come true. Ok appraisers, it’s time to speak out and stand together.
The only reason for these changes are about a piece of the 11 TRILLION dollar mortgage market. And that’s the way it is – March 1, 2023.
To watch the video, click here
My comments: Worth watching the video. Call to Action. Hamp is an excellent speaker and teacher.
Fannie Statement: “Value acceptance + property data has arrived”
“This new option reduces cycle times and may reduce borrower costs, promotes safety and soundness by obtaining a current observation of the subject property, and provides operational simplicity and certainty at time of loan application.“
To read what Fannie says, click here
Link to Fannie SEL-2023-02: Selling Guide Updates PDF
To read more, click here
My comments: Lenders Are Happeeee! Those darn appraisers and appraisals have always taken too much time. Fannie sells their loans to investors. The more loans, the more money Fannie makes. I did not include links to what the happy lenders say. You already know.Clear the Tracks!
Fannie Wants Desktop Appraisals
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NOTE: Please scroll down to read the other topics in this long blog post on Non-lender appraisals, AMCs, unusual homes, mortgage origination stats, etc.