Appraisal Waivers
Fact Sheet
Does every loan delivered to Fannie Mae require an appraisal? What if we have a recent appraisal on file? In somecases, we may be willing towaive the appraisal for certain transactions.
Fannie Mae’s appraisal waiver offers are issued through Desktop Underwriter®
(DU®) for eligible transactions using Fannie Mae’s database of more than 31 million appraisal reports in combination with proprietary analytics from
Collateral Underwriter®(CU®).
How it works
Appraisal waivers are available to all lenders through DU. There are no prerequisites and no registration process.When a DU loan case file receives an appraisal waiver offer and it is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the market value for the subject property and provides relief from enforcement of representations and warranties on the value, condition, and marketability of the property. The lender is required to represent and warrant that the data (other than the value estimate) submitted to DU is complete and accurate, and lenders must order an appraisal if they have reason to believe that an appraisal is warranted based on additional
information the lender has about the property or subsequent events.
The majority of transactions will not receive an appraisal waiver offer, which means they require an appraisal by a qualified residential appraiser to establish the market value.
This summary is intended for reference only. All criteria are subject to the formal terms and conditions of the Fannie Mae Selling Guide. In the event of any conflict with this document, the Selling Guide will govern.
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