Fannie Mae's Value Acceptance + Property Data Program: What Lenders Need to Know

Fannie Mae now accepts two new valuation products on eligible properties: property data collection and hybrid appraisals. This is another step towards appraisal modernization; Freddie Mac made a similar step in 2022.

Key Selling Guide Updates

• Fannie Mae now accepts property data collections and hybrid appraisals
• "Appraisal waiver" is now referred to as "value acceptance"
• New options for confirming completion of repairs (borrower/builder attestation letters)
• 1004Ds can be completed by the appraiser virtually in many cases
• C6 condition ratings can now be upgraded to C5 with repairs (previously denied outright)

DU will begin offering these new valuation products starting April 15, 2023.

The New DU Valuation Waterfall

Previously, DU offered two options: appraisal waiver or full appraisal. Now there are effectively five options:

1. Value acceptance (formerly "appraisal waiver")
2. Value acceptance + property data
3. Hybrid appraisal (when value acceptance + property data is no longer eligible)
4. Full appraisal with desktop option
5. Traditional full appraisal

Fannie Mae vs. Freddie Mac

The key difference: Fannie's products are available on purchases and refinances, while Freddie's are only available on certain refinances. Both programs share similar concepts but have different eligibility criteria.

Lender Responsibilities

When DU approves property data in lieu of a traditional appraisal, the lender is responsible for QC on the property data. If the data reveals conditions requiring a hybrid appraisal, it's the lender's responsibility to escalate.

Data Collectors Don't Need to Be Appraisers

Property data collectors must be:

• Vetted through an annual background check
• Professionally trained
• Demonstrate essential knowledge for competent data collection

Managing this internally is very difficult for lenders. Reggora supports these products today and handles the collector network, training, and compliance.