The Appraisal Blog

FNMA has updated their selling guide which dictates the procedures lenders need to follow in order to have their loans purchased by FNMA.  Part of the guide deals with valuation ... or appraisal.  In the latest itternation they are expanding the use of "appraisal waivers" ... no called Value Acceptance.

Basically this means that no appraisal will be necessary on certain products based on certain criteria.  Typically those criteria would include borrowers with high credit scores, (non-appraisal) valuations with high levels of confidence, and loans with low LTV's.

How many loans this will actually affect is to be determined.  However, the whole purpose of the independent appraisal is to verify that the collateral that is being used is secure the loan is accurately valued.  This seems, once again, like risky behavior.



https://singlefamily.fanniemae.com/news-events/announcement-sel-2023-02-selling-guide-updates

The mortgage finance market is contracting ... it is going to be a bumpy ride!

https://www.housingwire.com/articles/new-american-funding-no-longer-in-growth-mode-lays-off-240/

Traditional FICO scores don't work for some potential home buyers when evaluating their credit worthiness.  As a result FNMA/FHLMC will now allow alternative forms of credit called the FICO 10T and VantageScore 4.0 which take things like rent, utilities and telecom payments into consideration.



https://www.marketwatch.com/story/fannie-mae-freddie-mac-to-use-alternative-credit-scores-what-that-means-for-potential-homebuyers-11666643196

Back in 2008 lenders were collapsing on a seemingly daily basis.  There was even an on-line counter tracking their demise.  Let's hope this is not a sign of things to come... 



https://www.housingwire.com/articles/finance-of-america-mortgage-announces-shut-down%EF%BF%BC/

I've been on the VA fee panel for almost 10 years now and pride myself on being able to help veterans refinance their existing mortgages or get fair prices on their new home purchase.  Changes to the VA program will now allow veterans to by more house without an increased down payment!  Thank you for your service!

https://www.military.com/money/va-loans/new-law-allows-you-get-bigger-va-home-loan-without-down-payment.html