August 24th, 2017 6:58 AM by Jackie A. Graves, President
Fannie Mae is
now following suit in the appraisal-free arena by allowing property waiver
inspections on some purchase loans.
Shortly afterward, Fannie issued
its announcement: Property Inspection Waivers will
be allowed on mortgages with low loan-to-value ratios. The GSE
explained the change will allow lenders to offer better efficiency and cost
CEO Timothy Mayopoulos hinted that changes were coming when he first told
HousingWire that Fannie Mae was looking to
speed up the appraisal process.
in 2016, Fannie began offering appraisal-free mortgages on some of its
refinances through its Day 1 Certainty program.
will reduce the time it takes to close a loan, making it easier for lenders and
borrowers alike, Fannie explained. Buyers will still have the option of having
an appraisal done, but will not be obligated to do it with a PIW offer.
Freddie announced its new appraisal-free mortgage, it figured it could save
borrowers an estimated $500 in fees and could reduce closing times by as
many as 10 days.
while Freddie announced its appraisal-free product will become available on
September 1, 2017, Fannie Mae's product is available immediately.
Fannie Mae is not saying goodbye to the appraisal community. It explained the
vast majority of purchase mortgages will still require an appraiser.
Underwriter uses statistical models and algorithms built on a database of over
26 million appraisals to evaluate appraisal quality and drive greater
confidence in the valuation of properties securing the loans acquired by Fannie
this year, Fannie Mae updated its
policy on appraisals this year, and clarified its “existing policy that allows
an unlicensed or uncertified appraiser, or an appraiser trainee to complete the
property inspection. When the unlicensed or uncertified appraiser or appraiser
trainee completes the property inspection, the supervisory appraiser is not
required to also inspect the property.”
By Kelsey Ramírez - To
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