In today’s fast-paced world, lenders need to stay competitive by embracing innovative solutions. Appraisal modernization is an essential aspect of the loan origination process that can make a world of difference. With the Value Acceptance + Property Data program, Fannie Mae has taken a step in the right direction.
Value Acceptance + Property Data offers lenders the opportunity to waive the appraisal requirement for certain transactions, providing a low-cost alternative to a traditional appraisal. By issuing Value Acceptance Offers through Desktop Underwriter® (DU®), Fannie Mae uses its database of over 61 million appraisal reports in combination with proprietary analytics from Collateral Underwriter® (CU®) to accept lender-submitted values for eligible transactions.
Benefits of the Value Acceptance + Property Data Program
Value Acceptance + Property Data offers several benefits to lenders, including increased operational efficiencies, reduced loan origination costs, and helps in overcoming appraiser capacity constraints. This means that exercising a value acceptance offer relieves the lender from enforcement of representations and warranties on the value, condition, and marketability of the property.
The program leverages Fannie Mae’s massive database of over 61 million appraisal reports and advanced analytics from Collateral Underwriter® (CU®) to accept lender-submitted property valuations for eligible transactions. Lenders can now reduce considerable loan origination time and costs while still ensuring a smooth process.
How It Works
- The lender receives an offer for property data from Desktop Underwriter (DU), along with the value acceptance.
- The lender arranges for the collection of property data.
- Either the lender or a service provider submits the results of the property data collection to Fannie Mae’s Application Programming Interface (API).
The following service providers have aligned with Fannie Mae for Value Acceptance + Property Data:
- Asteroom
- Accurate Group, LLC
- Class Valuation
- Clear Capital
- Mueller Services, Inc
- Solidify
- Service Link
- Valuation Connect
More vendors are in the process of being approved by Fannie Mae for Value Acceptance and Property Data. Find the latest providers list updated by Fannie Mae on April 13, here.
What The Future Holds
Appraisals are no longer the default requirement for establishing market value through this latest offering by Fannie Mae. As part of Fannie Mae’s efforts to improve the efficiency and accuracy of the home valuation process, lenders can expect to see a reduction in turnaround times and borrower costs. The long-awaited changes to the valuation process went into effect on April 15, 2023, and are being heralded as a game-changer for the industry. Yet, others remain skeptical about the possible negative impact of relying on inspectors to do the job of trained appraisers.
