Newz: Waiver Risks, Appraisal Alleged Bias, FHA Rescinds Multiple Appraisal Related Policies
March 21, 2025
What’s in This Newsletter (In Order, Scroll Down)
- LIA ad: Appraisal Used in Divorce Case — Now What?
- The Hidden Risks of Appraisal Waivers: What Homebuyers and Homeowners Need to Know
- Palm Desert California Home With Its Own Shark Tank Hits the Market for $59 Million
- Relocation Appraisals: The Power of Market Analysis
- NFHA (National Fair Housing Alliance) Rescinds Multiple Appraisal Related Policies Funding Dries Up. Appraiser lawsuit.
- Fannie, Freddie board shakeups bring conservatorship exit closer to reality
- FHA Rescinds Multiple Appraisal Related Policies
- Federal Reserve leaves rates unchanged. Two rate cuts may be coming this year.
- MBA – Mortgage applications decreased 6.2 percent from one week earlier
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The Hidden Risks of Appraisal Waivers: What Homebuyers and Homeowners Need to Know
March 4, 2025 By Tom Horn
Excerpts: Imagine this: You’re buying a home, and your lender offers you an appraisal waiver. You’re told this will save time, reduce hassle, and even cut costs. It sounds like a great deal, right? But what if I told you that skipping the appraisal could lead to overpaying for your home, financial headaches down the road, and even market distortions that could affect entire neighborhoods?
6 Reason You May Not Want an Appraisal Waiver
1. You Might Overpay for the Property
2. Refinancing or Selling Could Become a Problem. Even if overpaying doesn’t seem like a big deal at the time of purchase, it can come back to haunt you when it’s time to refinance or sell.
3. Hidden Property Condition Issues Could Go Undetected
4. Appraisal Waivers Contribute to “Data Cancer” in the Housing Market. What is Data Cancer? “Data cancer” is a term used to describe the gradual corruption of real estate valuation data due to repeated reliance on flawed or incomplete information.
5. You Lose a Key Protection Against Market Volatility. A professional appraisal acts as a check and balance in the homebuying process. Without it, buyers are left vulnerable to shifting market conditions.
6. 6. Lenders Benefit More Than You Do. Appraisal waivers aren’t offered to help buyers—they’re offered to help lenders.
To read more, Click Here
My comments: Worth reading. The first article I have seen showing why appraisal waivers can be bad for borrowers. Appraisal waivers are increasing. Per the GSEs they save borrowers money on appraisal fees.
When the new URAR is required starting in late 2026, waivers will have much more data from appraisals to allow waiver use increase by the GSEs