Appraisal waivers (PIW)
Hello. I wanted to do a video on appraisal waivers. If I contact you and let you know that your file is eligible for an appraisal waiver, it means no appraisal is required, and it would save you the appraisal fee and would save us some time. You can see that these are the Fannie Mae guidelines. And an appraisal waiver is eligible for a conventional conforming loan, not a jumbo loan, not an FHA loan, not a VA loan. So you see here, these are the Fannie Mae guidelines, which cover conventional loans. For certain loan case files, DU, which stands for Desktop Underwriter, which is Fannie Mae’s automated underwriting software, offers an appraisal waiver. That’s an option to waive the appraisal requirement. And it goes on to say, in order for an appraisal waiver to be considered, a prior appraisal must be found for the subject property in Fannie Mae’s Collateral Underwriter, or CU, system. And then it will do kind of a, an e-analysis and e-Valuation, looking at the prior appraisal, looking at current valuations through, almost like a Zillow Zestimate or a Redfin Estimate. Which are not completely accurate, but if the system sees that they feel they have sufficient gauge on the value, they think they know within a certain range what the value is based on prior appraisal, based on their own electronic analysis, they won’t require an appraisal.
0:01:42.5 Speaker 1: And you can see that within a conventional loan, there are certain appraisal waivers that, they’ll consider and some they won’t. So they will consider an appraisal waiver for one-unit properties, including condos. So a single-family detached home, a single townhome, a single condo, no multi-family property is what they’re saying. Principal residence and second home, investment property, refinance transactions; it goes on, and… And here it tells you, “ineligible.” Two to four-unit properties, as I said, multi-family, and it just kinda goes through. But I wanted you to know, if I let you know that you’re eligible for an appraisal waiver, you can choose to still have the appraisal. I think I would opt for the appraisal waiver to save the fee, unless you really want to see what the appraiser’s opinion is. Otherwise, if I tell you that you’re eligible for the appraisal waiver, just reply and tell me you understand. You’ve watched this video. And that yes or no, maybe yes, that you do want it. And then you will get a loan estimate that will not include an appraisal fee and… And that’s why we’ll also save that time in the processing of a loan. Check in with any questions, and thanks for watching the video.