Fannie Mae’s $3B Savings Claim, FHA/VA Updates, & More
In this issue:
- Putting Fannie Mae’s $3 billion appraisal savings estimate in context
- Federal appraisal update: What’s new at FHA and VA
- Weaker multifamily valuations drive higher credit-loss provision
Putting Fannie Mae’s $3 Billion Appraisal Savings Estimate in Context
Fannie Mae estimates that appraisal alternatives have saved borrowers $3 billion since 2018, but what does that headline reveal about housing affordability? A closer look shows that the estimate largely reflects an assumed $550 savings across 5.34 million loans, many likely tied to lower-risk refinance transactions. New data from the AEI Housing Center adds important context about current waiver usage, including its expansion into purchase lending. Read our analysis of the figures, the unanswered questions, and why greater transparency is needed.
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Complex residential assignments demand more than sound analysis. They require clear, defensible appraisal reports.
A new AI blog explores how Advanced Residential Report Writing / Part 2 helps appraisers strengthen residential appraisal reporting through applied case studies, communicate complex analysis with clarity, and continue the education sequence toward the SRA designation.
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Q. I completed an appraisal of a small office building in town for a local lender. The borrower and property owner, along with his family, are well known and well respected in the community, so I was pleased that everything went smoothly with the assignment.
About a week after I submitted the report, a loan officer from Bank A called me and said the borrower was doing another large deal with his bank and wanted me to “transfer” the report to Bank B. I tried to explain that I could not simply put the new bank’s name on the report I had prepared for Bank A, but the loan officer became frustrated with me and said something to the effect of the report being “only a week old,” as if that should make a difference.
The next call I received was from the bank manager at Bank A asking me what the problem was. He went on to say that he was prepared to have his legal department draft whatever documents I needed to make this happen. He did most of the talking and did not give me much of a chance to respond, but I eventually was able to explain that I could not just put the name of Bank B on the report I completed for Bank A. I told him that I would need to prepare a new report for Bank B if they wanted an appraisal addressed to that institution.
I did not even get a chance to finish my sentence before he became upset. He said that my position was “ridiculous” and called it a “money grab.” He continued for a bit, clearly frustrated, and then hung up the phone.
Now I am in a bit of a tough spot. This is a small town, and I do not want the whole town to be mad at me or think that I am being difficult for no reason. At the same time, I know that I have certain obligations under USPAP and that I cannot simply make changes to an existing report in the way they are asking. Even though the request may seem minor to them, I understand that it is not something I can accommodate without creating potential issues for myself.
What I am thinking about doing is sending a short email to the bank manager explaining that I have certain ethical obligations under USPAP that prevent me from simply changing the client name on a report. I am considering referencing Advisory Opinions 26 and 27 to support my position and to show that this is not just my personal preference, but a requirement that applies to all appraisers.
I would also explain that I am willing to work with them to resolve the situation. Specifically, I could let them know that if they provide me with written authorization, I would be able to prepare a new appraisal addressed to Bank B. I am even considering offering to complete that new report at no additional charge in an effort to keep things amicable and maintain the relationship.
Before I move forward with that approach, I want to make sure I am handling this the right way and not overlooking anything important.
How does that sound, and is there anything else I should consider including in my response to help protect myself while also keeping the situation from escalating further?
Read Claudia's Answer
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Federal Appraisal Update: What’s New at FHA and VA
August 20, 2026, 11 AM CT
Stay current on the latest developments affecting FHA and VA appraisal assignments. This webinar will examine changes to minimum property requirements, recent appraisal policy updates, and efforts to align federal requirements with the recent executive order and newly enacted legislation. Presenters will explain what is changing, what appraisers should expect, and how these developments may support clearer requirements, more consistent practices, and improved access to mortgage credit.
Panelists:
Brian Barnes, Deputy Director, Home Valuation Policy Division,
Federal Housing Administration
James Heaslet, Chief Appraiser, Loan Guaranty Service,
U.S. Veteran’s Administration
Weaker Multifamily Valuations Drive Higher Credit-Loss Provision
Fannie Mae increased its provision for multifamily credit losses to $259 million in the second quarter of 2026—up $85 million, or nearly 49%, from the prior quarter. The company attributed the increase primarily to weaker property valuations, slower net operating income growth, and additional loans becoming seriously delinquent. Although the provision reflects estimated rather than realized losses, it signals continued pressure on some multifamily assets from operating expenses, financing costs, and slower rent growth. For appraisers, lenders, and investors, the results underscore the importance of current market evidence and careful analysis of income growth, expenses, capitalization rates, and refinancing risk.
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Help Shape the Future of Real Estate Reporting
Nominations are open for the NCREIF PREA Reporting Standards Council, offering Appraisal Institute members an opportunity to help shape transparent, consistent real estate reporting practices that support comparability and informed investment decisions. Members with experience in institutional real estate, valuation, financial reporting, or investment analysis are encouraged to contribute their expertise through this industry leadership and collaboration opportunity. Nominations are due September 1, 2026, and selected participants will convene during the NCREIF Conference taking place October 12–15 in Orlando.