On March 1, Fannie Mae updated its Selling Guide to include a range of options for property valuations as the government-sponsored enterprise moves away from suggesting that an appraisal is a “default requirement,” according to a post on the Appraisal Institute (AI) website.
Fannie notes that home valuation options include value acceptance, value acceptance plus property data and hybrid appraisals.
AI President Craig Steinley gave his response.
“This announcement does raise concerns and questions about increasing collateral risk at a time of market volatility,” he said. “Further, the change complicates appraiser recruitment and diversity efforts through the insertion of an unregulated contingent of property data collectors into the mortgage lending process.”
Steinley also pointed out the Appraisal Institute has been offering education on desktop and hybrid appraisals for many years and that the valuation profession is fully prepared to deliver a range of services to the mortgage market.