The GSE Risk Barometer: What Purchase Appraisal Waivers Reveal Now
In this issue:
- Purchase Appraisal Waivers: Shifts in waiver usage and what’s to come
- UVCC Partnership: Rockport VAL signs on as Tech Partner
- Book Sale: Members get 20% off books through 12/31
- Crypto & Real Estate: Tokenization, Valuation, and the Role of Independent Appraisers
Rockport VAL Becomes UVCC Technology Partner
We are thrilled to announce that Rockport VAL has signed on as the Technology Partner for the University Valuation Case Challenge on April 14, 2026. Students who participate in the challenge will get free access and training to Rockport's software to use in their case studies.
The University Valuation Case Challenge (UVCC) is a national real estate appraisal case competition hosted during the Appraisal Institute’s Annual Conference. Modeled after leading industry challenges, this event brings together 16 teams from top undergraduate real estate programs across the country.
This unique opportunity will allow students seeking internships and permanent employment to showcase their abilities before major national employers. Finalist teams will be selected from the semi-final round and will advance to the final round of presentations.
Are you aware of a university real estate program that might be interested in participating?
The deadline to enter the UVCC is February 3, 2026
Real Estate DCF, Valuation & Appraisal Software | Rockport VAL
Insights
Purchase Appraisal Waivers: The GSE Risk Barometer
After peaking during the pandemic, purchase appraisal waivers at Fannie Mae and Freddie Mac have settled into a lower, more deliberate range, according to the latest Prevalence of GSE Appraisal Waivers report from the American Enterprise Institute (AEI). In September 2025, just 16.5% of Freddie Mac and 11.9% of Fannie Mae purchase loans closed with a waiver, with hybrid/data-collection alternatives each at ~2.4%. This is well below the March 2021 highs, signaling a sustained, cautious approach to valuation waivers on new originations.
Purchase loans lack the seasoning and data depth of refinances, so shifts in waiver usage offer a cleaner read on how the GSEs are balancing credit risk and operational efficiency. AEI’s latest analysis confirms that loan-to-value (LTV) ratio constraints remain central to waiver eligibility and that even within LTV buckets, loans with waivers show lower average mortgage default rates, evidence of tight credit overlays and careful model governance.
Key driver to watch:
Fannie’s expansion of waiver eligibility to 80%–90% CLTV in Q1 2025 nudged usage in this higher-LTV band from ~2% in February to ~17% in September. This targeted policy change is a leading indicator for future risk segmentation and operational trends.
What Lies Ahead: UAD 3.6 and a Sea Change in Appraisal Reporting
The next two years will bring the most significant process change in mortgage appraisal reporting in over a decade. The Uniform Appraisal Dataset (UAD) 3.6 and dynamic Uniform Residential Appraisal Report (URAR) will replace legacy forms with a single, data-driven report for all residential property types.
Timeline highlights:
- Limited production: Sept. 8, 2025 – Jan. 25, 2026
- Broad production: Jan. 26, 2026 – Nov. 1, 2026
- Mandatory adoption: Nov. 2, 2026
- Retirement of old forms: May 3, 2027
Field insight:
As one appraiser in the UAD 3.6 test group shared with the Appraisal Institute, "Everyone said they were more ready than they are." This honest reflection underscores the need for early, practical training as the industry adapts to new standards.
Get Ready: URAR Companion Courses Available Now
To help appraisers prepare, the Appraisal Institute has launched the first two courses in its five-part URAR Companion Series:
- Reporting Market Analysis and Better Understanding the New URAR
- Supporting Adjustments and Reporting the Sales Comparison Approach in the New URAR
Both are available today, with additional courses launching early next year.
Why attend?
- Gain hands-on guidance for the new URAR and UAD 3.6 requirements
- Learn from veteran instructors and real-world examples
- Build confidence and compliance for GSE-driven assignments
With purchase waiver trends stabilizing and the UAD 3.6 transition on the horizon, now is the time to invest in your readiness. Let’s make sure our community is truly prepared, starting with the URAR Companion Courses.
Your Benefits
Just for Our Members: Take 20% Off Books Through 12/31
As a special THANK YOU to our members, take 20% off all items in the AI Bookstore! Use code THANKS25 at checkout to take advantage of our biggest sale of the year and secure the most insightful resources to advance your appraisal career. This sale only lasts until December 31, so shop now while this deal lasts!
Discounts from Our Partners
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Crypto & Real Estate: Tokenization, Valuation, and the Role of Independent Appraisers
January 15 2026 – 11:00 a.m. CT
As blockchain and cryptocurrency technologies continue to disrupt traditional finance, real estate is emerging as a frontier for innovation through tokenization. This panel will explore how property assets are being fractionalized and traded on blockchain platforms, the legal and regulatory implications, and how valuation professionals fit into this rapidly evolving landscape.
Peter Gaffney
Director of DeFi & Digital Trading, Inveniam
Advocacy Updates
Fannie Mae’s Educational Letters to AMCs: A Long-Awaited Step Toward Quality
For years, appraisers have received direct feedback on appraisal quality issues. Now, Fannie Mae is finally extending this level of scrutiny to Appraisal Management Companies (AMCs). In July 2025, Fannie Mae began sending annual educational letters to AMCs, detailing appraisal quality concerns identified in loan reviews. These letters highlight recurring issues such as inadequate comparable adjustments, inaccurate reporting, and questionable comparable selection—problems that often stem from cost-driven assignment practices.
Appraisal professionals have long advocated for greater AMC accountability, noting that assignments start and end with the AMC. Too often, the focus on lowest-cost providers has compromised quality and consistency. By providing AMCs with specific, actionable feedback, Fannie Mae is encouraging improved training, clearer engagement instructions, and stronger quality control.
“It’s about time AMCs are held to the same standard as appraisers,” said Scott DiBiasio, Director of Federal Affairs. “Quality starts with the assignment, and AMCs play a pivotal role. When feedback is direct and transparent, it pushes the entire industry toward better outcomes for lenders, appraisers, and consumers.”
Fannie Mae’s commitment to repeat this operation annually signals a modest but positive step towards accountability for all parties involved in the appraisal process.
ADUs Continue to Offer Opportunities for Appraisers
Fannie Mae has announced major updates to its Selling Guide, effective March 31, 2026, expanding eligibility for accessory dwelling units (ADUs) and manufactured housing (MH) under the UAD 3.6 Policy Supplement. These changes allow two- to three-unit properties to include ADUs (up to four total units), permit up to three ADUs on single-unit properties, and extend eligibility for both standard manufactured homes and MH Advantage® properties with ADUs, provided all dwellings are classified as real property and do not exceed four units. MH eligibility now covers single- and multi-section homes, two- to four-unit properties, and multi-story configurations. These updates apply only to loans with UAD 3.6 appraisals. There are also changes to the Homestyle Renovation product affecting how lenders consume appraisals, which may interest appraisers.
As ADUs become increasingly relevant in residential valuation, appraisers seeking to deepen their expertise may benefit from our “Valuation Overview of Accessory Dwelling Units” course, which covers the latest trends, legal concerns, and valuation methods for ADUs.
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Your Community
Solicitation of Names for 2027 Vice President
The Appraisal Institute is seeking individuals interested in serving as the 2027 Vice President of the Appraisal Institute. The 2027 Vice President succeeds to the office of the 2028 President Elect, 2029 President and 2030 Immediate Past President.
If you are interested in serving or wish to recommend someone for the position, please email your written recommendation to:
Chair, 2026 National Nominating Committee
c/o Michelle Davey at: mdavey@appraisalinstitute.org
(Note: Deadline for submission is February 5, 2026, 5:00 pm CT)
Qualifications for 2027 Vice President can be found in the Appraisal Institute Bylaws and Regulations and on the Appraisal Institute’s Website. Candidates cannot serve as a member of the National Nominating Committee at any time during the year in which his or her candidacy would be considered.
The National Nominating Committee will interview candidates on May 12-13, 2026.
Until Next week
Team Appraisal Institute
