GSE Expansion News, New Chapter Opportunities, Free Webinars
In this issue:
- GSEs Expand Hybrid Appraisals: Fannie Mae and Freddie Mac plan to increase hybrid appraisals starting Q2 2025.
- AI Advocates for Appraisal Integrity: AI opposes appraisal waivers and supports stronger regulation of property data collectors.
- Legislative Focus: States to consider licensing property data collectors to ensure quality and accountability.
Insights
GSEs Announce Plan to Expand Use of Hybrid Appraisals
Last week, Fannie Mae and Freddie Mac announced they are planning to expand their use of hybrid appraisals. Details of the new policy were not revealed in the announcement of the “Expanded Hybrid Appraisal Policy” but are expected to be included in respective February single-family guide bulletins, with the policy beginning in Q2 of 2025. A hybrid appraisal is one in which a third-party property data collection report is used in the development and reporting of an appraisal.
The Appraisal Institute advocates protecting the integrity of the appraisal profession and the appraiser’s role in the real estate process, including by standing firm against efforts to waive traditional appraisal requirements and to substitute third-party property data collections. According to data from the American Enterprise Institute (AEI), “The share of appraisal waivers for both GSEs combined for October 2024 stood at 18%, up 2 percentage points from last month.” AEI data also shows that an additional 2.1% of transactions added a third-party property data collection report to the offer of an appraisal waiver. While approximately 80% of transactions still utilize traditional appraisals, it is anticipated that hybrid appraisals will be offered to lenders for many of these loans.
AI is already working in the 119th Congress and the incoming Trump Administration to highlight the increased risk to the safety and soundness of the economy created by appraisal waivers, property data collections, and hybrid appraisals, especially at a time when removing the GSEs from conservatorship is a top priority.
Additionally, state-based regulation of property data collectors is crucial to addressing issues like inadequate training, inconsistent service quality, lack of accountability, and gaps in background check requirements. A few states will be considering legislation to require the licensing of property data collectors and the registration of property data collection companies during the 2025 legislative sessions.
Your Benefits
This Week’s Featured Benefit: Networking and Referrals
Boost Revenue and Expand Networks with Appraisal Institute Membership
The Appraisal Institute offers unparalleled benefits to its members, equipping them with tools to increase revenue and expand professional networks. Testimonials highlight how the association fosters career growth and meaningful connections within the appraisal profession.
Enhanced Revenue Opportunities
Earning an AI designation directly impacts earning potential. Sam Adesiji, SRA, credits his designation for nearly doubling his income, citing it as a mark of excellence that attracts higher-quality assignments. “Since receiving this prestigious designation, my income has nearly doubled—a testament to the value it brings to both appraisers and their clients. What has truly stood out is the credibility this designation holds with both lenders and non-lending clients. Time and time again, I have seen how clients recognize and trust the expertise that comes with Appraisal Institute SRA designation. It has opened doors to higher-quality assignments, improved my reputation, and allowed me to build stronger relationships with my clients.”
Similarly, Heidi Ford, SRA, AI-RRS, emphasizes that her designation led to better clients, more complex projects, and significantly higher hourly earnings. “I have better clients; I receive higher quality assignments and have more than doubled what I make on an hourly basis. The additional education gave me the boost I needed to write better narrative reports and provide more comprehensive analyses.”
The network extends beyond immediate connections, opening doors to leadership roles, referrals, and special projects. Woody Fincham, SRA, AI-RRS, further emphasizes the value of AI’s network, stating, “Referrals from fellow Designated Members have become a cornerstone of my business. I get many assignments a year because the client wants someone with that designation. I get referrals every year from MAI-designated colleagues as well.” This consistent stream of referrals and high-value projects demonstrates how AI membership can translate into financial rewards and steady business growth.
Invaluable Networking and Mentorship
AI membership creates a vibrant community where professionals connect, exchange ideas, and support one another. The network extends beyond immediate connections, opening doors to leadership roles, referrals, and special projects. For appraisers seeking to increase revenue, gain credibility, and grow their professional network, the Appraisal Institute offers a transformative path to success. With a legacy of excellence and a commitment to advancing careers, AI membership is an investment that continues to pay dividends—both through enhanced earning potential and a robust referral network.
Real Estate Horizons
Stay updated and check out links to the latest major real estate industry stories!
More Opportunities to Learn
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Our Community
Support for Members Affected by the LA Fires: AI Education and Relief Foundation
In the aftermath of recent natural disasters, many members may be grappling with personal or professional challenges. The Appraisal Institute Education and Relief Foundation (AIERF) is here to provide critical support during these difficult times.
The AIERF is dedicated to assisting members who are experiencing financial hardships due to disasters, medical emergencies, or other unforeseen circumstances. Applying for assistance is straightforward and confidential. Members can submit their requests online, detailing their circumstances and the specific support they need. The Foundation’s team works quickly to assess applications and provide timely aid. Beyond financial relief, the AIERF also supports education and career development, ensuring members have the resources to succeed in the profession even during challenging times.
To learn more or apply for assistance, visit the AIERF website. Your AI community stands with you, ready to support and help you move forward.
Until next week,
Team Appraisal Institute
