{"id":616591,"date":"2023-03-10T15:59:00","date_gmt":"2023-03-10T21:59:00","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/03\/10\/fannie-mae-approves-six-vendors-for-controversial-new-valuation-initiative\/"},"modified":"2023-03-10T15:59:00","modified_gmt":"2023-03-10T21:59:00","slug":"fannie-mae-approves-six-vendors-for-controversial-new-valuation-initiative","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/03\/10\/fannie-mae-approves-six-vendors-for-controversial-new-valuation-initiative\/","title":{"rendered":"Fannie Mae approves six vendors for controversial new valuation initiative"},"content":{"rendered":"
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Fannie Mae<\/strong> has approved six firms to handle its new valuation initiative, which cuts traditional appraisers out of the process and potentially represents the biggest shift in the valuation space in years. <\/p>\n

Fannie Mae<\/a><\/strong>\u00a0last Wednesday updated its\u00a0Selling Guide<\/a> to include more options for property valuations, saying that the GSE is \u201cmoving away from implying that an appraisal is a default requirement.\u201d <\/p>\n

Those options include value acceptance \u2013\u00a0formerly known as appraisal waivers \u2013 as well as \u201cvalue acceptance plus property data and hybrid appraisals.\u201d<\/p>\n

The participating firms, which will collect appraisal data and put it through Fannie Mae\u2019s API, include the biggest name in the mortgage tech space: Solidifi,<\/strong> Class Valuation<\/strong>, Clear Capital<\/strong>, Mueller Services, Inc.<\/strong>, Accurate Group<\/strong> and Black Knight<\/strong>\u2018s Collateral Analytics LLC.<\/p>\n

For the new value acceptance plus property data option, third parties are authorized to do that collection at the property site, as long as lenders verify that they have a background check, have been \u201cprofessionally trained\u201d and are competent to do that collection. This data can only be submitted through Fannie Mae\u2019s \u201cProperty Data API.\u201d<\/p>\n

In a statement Friday, Accurate Group said it has completed more than three million property data inspections and hybrid appraisals through its ValueNet suite of products. <\/p>\n

Accurate Group is one of the two companies under the approved service providers for Fannie Mae\u2019s Value Acceptance + Property Data that also offers title and closing<\/a> solutions along with valuation services<\/a>, said Paul Doman, president and CEO of Accurate Group.<\/p>\n

\u201cThat\u2019s a big statement \u2013 we\u2019re a one-stop shop for lenders giving them a significant advantage over their competitors,\u201d Doman remarked. \u201cOur appraisal, property inspection, title and closing technologies are designed to plug into any digital platform.\u201d<\/p>\n

Among other initiatives the company is taking to digitize its real estate lending process is expanding its affiliate appraisal management platform AppraisalWorks <\/strong>to include title and closing services, Doman added.<\/p>\n

Kenon Chen<\/a>, executive vice president of strategy and growth at\u00a0Clear Capital<\/a><\/strong>, told HousingWire last week that the potential for modernization in the industry is huge with Fannie\u2019s announcement. <\/p>\n

\u201cThis is a standardized data collection done at the property, which brings objective, transparent data into the whole process,\u201d he said. \u201cI think that not only drives this program, but paves the way for a better appraisal process when an appraisal is needed.\u201d<\/p>\n

Appraisers, as one would expect, are up in arms about Fannie Mae\u2019s new initiative. <\/p>\n

\u201cI encourage all appraisers to take a very serious examination of their current business model,\u201d wrote Washington-based appraiser Dave Towne on AppraisersBlog.com<\/a>. \u201cShift NOW as much appraisal work as possible away from Fannie Mae. Because if the Fannie Mae trend continues, you won\u2019t have any of that business in the future anyway.\u201d<\/p>\n

One appraiser of 23 years told HousingWire that there are real questions to be asked about the reliability of people hired to collect the data on behalf of the vendors, which could be real estate agents or others Fannie Mae deems \u201cprofessionally trained.\u201d<\/p>\n

\u201cI have found that there is a wide range of competence when it pertains to agents,\u201d the appraiser said. \u201cThere are a lot of agents that are just in the business of selling with no real idea of what it is they are selling.\u00a0 Agents are coached to use sources such as county records to state property square footage. I am not confident that many will what to take on that task as it could lead to bigger issues for them down the road. What \u00a0if they miss-measured a property that now is their listing?\u201d<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n James Kleimann<\/p>\n","protected":false},"excerpt":{"rendered":"

Fannie Mae has approved six firms to handle its new valuation initiative, which cuts traditional appraisers out of the process and potentially represents the biggest shift in the valuation space in years. Fannie Mae\u00a0last Wednesday updated its\u00a0Selling Guide to include more options for property valuations, saying that the GSE is \u201cmoving away from implying that […]<\/p>\n","protected":false},"author":1,"featured_media":616592,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23704,22952,534],"tags":[],"class_list":{"0":"post-616591","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-approves","8":"category-fannie","9":"category-financial"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/616591","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=616591"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/616591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/616592"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=616591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=616591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=616591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}