My New Blog

Appraisal Waivers

August 9th, 2018 8:03 PM by Sam Kader MLO130505

This program has been available for single-family purchases and refinances since 2017 that gives eligible borrowers the ability to realize savings in cases where the Automated Collateral Evaluation (ACE) system determines that

a traditional appraisal isn't required. ACE uses data from multiple listing services and public records as well as a data base of historical home values to determine collateral values, analyzing the information using its proprietary models. An appraisal waiver means some borrowers can save as much as $750 on appraisal fees and close 7 to 10 days faster with a waiver. As of June 2018, Fannie Mae also expanded their Property Inspection Waiver (PIW) to condo's. To determine eligibility, we must submit files through Automated Underwriting System (AUS) and must receive an Approve/Eligible recommendation. Borrowers can still opt for a traditional appraisal even if a property is found eligible for a waiver.

As a general guidelines, here are lists of eligible transactions on one-unit properties including condominiums:

Rate an term refinance transactions: Principal residences and second homes up to 90% LTV/CLTV or Investment properties up to 75% LTV/CLTV
Cash-out refinance transactions: Principal residences up to 70% LTV/CLTV or Second homes and investment properties up to 60% LTV/CLTV
Purchase transactions: Principal residences and second homes up to 80% LTV/CLTV

Posted in:Appraisal, Underwriting Guidelines, and tagged: Appraisal Underwriting Guidelines

Posted by Sam Kader MLO130505 on August 9th, 2018 8:03 PM

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