The Appraisal Blog

FNMA says they are bullish on the Supervisor / Trainee relationship.  For those who aren't familiar obtaining an appraisal license can be a daunting process.  Just to get your first level of licensure, AL (Licensed Appraiser), you need 150 hours of coursework,1000 hours of work experience (yes ... it is an apprenticeship), and pass a test.  To get your AR (Certified Residential) you need another 50 hours of coursework, another 500 hours of work experience, and another test.

Meanwhile ... they are promoting their Value Acceptance program and the Property Data Collection model which will reduce the number of appraisals required and reduce the amount of work that is required.

The appraiser-trainee model is already broke.  After the 2008 crash, congress signed the Dodd-Frank legislation which created the AMC (Appraisal Management Company) model.  AMC's are middle men between the lender and the appraiser.  They take a cut of the appraisal fee and don't allow trainees.  Well technically they allow traness ONLY if they are accompanied by their supervisor.

I used to train appraisers.  I trained 6 appraisers to full licensure.  But it does not make any financial sense anymore.  Sorry FNMA ... I don't believe you!



https://appraisalbuzz.com/fannie-mae-is-bullish-on-appraiser-trainees/

Another opinion on the new expanding Appraisal Waiver program.  I submitted letters to all my representatives ... how about you?


https://appraisersblogs.com/dear-representative-fannie-mae-has-gone-rogue

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

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

It's been a busy 2 1/2 years.  So busy we haven't had time to post industry information during the refi/sales boom!  But we've stayed on top of industry changes including the ANSI Measurement Standard now required by FNMA.  The good news is we've been creating ANSI compliant reports for years now.  Here is the statement from FNMA ...


https://singlefamily.fanniemae.com/media/30266/display