CRT-Eligible Profile Summary
Value Acceptance (Appraisal Waiver)
As part of Fannie Mae's commitment to simplify the complexity of mortgage origination by creating efficiencies and delivering innovations that improve the loan manufacturing process,
we updated our value acceptance (appraisal waiver) offering, formerly known as Property Inspection Waiver, by integrating Desktop Underwriter (DU) and Collateral Underwriter (CU).
By using Fannie Mae's industry-leading analytics, which includes both CU and AVM (automated valuation model), we can offer value acceptance for certain lower-risk eligible loans.
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DU File
Submission
DU Eligibility
Exclusion Checks
CU Eligibility
Exclusion Checks
Subject property generally has a prior appraisal that was analyzed by CU or UAD elements, which are evaluated in conjunction with the AVM.
CU
CU will evaluate the prior appraisal for overvaluation or property eligibility issues. If any of these
issues exist, value acceptance (appraisal waiver) will not be granted.
CU will use the prior appraised value along with Fannie Mae's Home Price Index to assess the
reasonableness of the estimated property value provided by the lender in DU.
If estimated property value is reasonably supported, the loan may be eligible for value acceptance
(appraisal waiver), subject to additional eligibility requirements.
UAD Elements
Value Acceptance
(Appraisal Waiver) Offered
Fannie Mae will use property data sourced from UAD if any eligibility issues. If any of these issues exist,
value acceptance (appraisal waiver) will not be granted.
Fannie Mae will use internally sourced AVM to assess the reasonableness of the estimated property
value provided by the lender in DU.
If estimated property value is reasonably supported, the loan may be eligible for value acceptance
(appraisal waiver), subject to additional eligibility requirements.
We currently anticipate that the majority of transactions will continue to require an appraisal.
Fannie Mae has offered value acceptance (appraisal waivers) for many years, and we have observed no material differences in performance for loans with the waiver versus comparable
risk loans that obtained an appraisal.
In September 2020, Fannie Mae enhanced its CRT disclosures from " Property Inspection Waiver" to a new attribute, "Property Valuation Method," which indicates the method by which
the value of the subject mortgaged property was obtained, including appraisal waivers
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CAS/CIRT deal files include a loan-level waiver identifierView entire presentation