Fannie Mae: Appraisals No Longer the ‘Default Requirement’
Fannie Mae on March 1 updated its Selling Guide to include a range of options for property valuations as the government-sponsored enterprise moves away from suggesting that an appraisal is a “default requirement.” Fannie notes that home valuation options include value acceptance, value acceptance plus property data and hybrid appraisals.
In response, Appraisal Institute President Craig Steinley, MAI, SRA, AI-GRS, AI-RRS, stated, “This announcement does raise concerns and questions about increasing collateral risk at a time of market volatility. Further, the change complicates appraiser recruitment and diversity efforts through the insertion of an unregulated contingent of property data collectors into the mortgage lending process.” He also noted that the Appraisal Institute has been offering education on desktop and hybrid appraisals for many years and that the valuation profession is fully prepared to deliver a range of services to the mortgage market.
Read Fannie Mae’s updated Selling Guide.