Fannie Mae REO switching to AMCs

[J Grant]

FANNIE MAE Published September 3, 2025

In addition to the limited waiver of underwriting representations and warranties available for certain DU loans, when a loan casefile is eligible for value acceptance, value acceptance + property data, or rural high-needsvalue acceptance, and is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the value for the subject property. The estimated property value the lender enters in DU must be based on the lender’s or borrower's estimate of value for a refinance transaction, or the same amount as the Sales Contract Price for a purchase transaction.For all value acceptance offers that are exercised, the lender remains responsible for the accuracy andcompleteness of all data that pertains to the property and project (if applicable) that is submitted to DU (otherthan the property value) and must warrant that the property is adequately insured.

Fannie Mae does not warrant that the estimated value provided by the lender is the actual value of the subject property. The lender may not make any statements to any third party (including the borrower) that Fannie Maeperformed any kind of appraisal or valuation of the property.

 

[George Hatch]

^^^^ devious, right?

 

[Non Sequitur]

Just delivered my last report to Fannie Default, it was a bear that took most of the day to pin down. I'm relieved, I should have dropped them a few years ago.

 

[Non Sequitur]

IYKYK:​

Order FMDEF-XXXXXX-XXXX-1 has been set to Completed​

End of an era. I wish everyone well at Fannie Default.

 

[RSW]

Clear Capital is the only one I have heard of and that is a clear "no!"

CC offered me a 1004 REO appraisal today for $425. Not even close to my fee.

 

[Flakey]

CC offered me a 1004 REO appraisal today for $425. Not even close to my fee.

I can't imagine the additional layer of Clear Crapital BS on top of Fannies already bloated requirements. Glad to be done with it.

 

[chad hampton]

Based on that list, I know who picks up tabs at breakfast. If I know those guys at the GSE’s like I do, I assume they got some good steak dinners out of it too.

 

[Bobby Bucks]

Just delivered my last report to Fannie Default, it was a bear that took most of the day to pin down. I'm relieved, I should have dropped them a few years ago.

I completed my most recent Fannie REO last month which I now assume will be my last. It was a storm damaged nightmare. I know the listing agent very well and he said Fannie REO has become a horrible client to deal with which used to not be the case. He said the disparity/repair issues have become an absolute nightmare, You're guilty until you can prove your innocence.

 

[Sadie]

I completed my most recent Fannie REO last month which I now assume will be my last. It was a storm damaged nightmare. I know the listing agent very well and he said Fannie REO has become a horrible client to deal with which used to not be the case. He said the disparity/repair issues have become an absolute nightmare, You're guilty until you can prove your innocence.

I noticed after the wave of foreclosures in 2008-2010, Fannie sat on a ton of inventory, kicking people out of their homes for non payment (fair), but not actually foreclosing on them, so they just sat, sometimes for years. Of course they deteriorated and many of them became 'occupied' by squatters. To me it was bizarre to do that. Not marketing them, just letting them sit. Some they turned, but a lot sat for a really long time.

 

[Bobby Bucks]

I noticed after the wave of foreclosures in 2008-2010, Fannie sat on a ton of inventory, kicking people out of their homes for non payment (fair), but not actually foreclosing on them, so they just sat, sometimes for years. Of course they deteriorated and many of them became 'occupied' by squatters. To me it was bizarre to do that. Not marketing them, just letting them sit. Some they turned, but a lot sat for a really long time.

The Fannie shadow inventory has always been a mystery. In one of their teleconferences after the bubble with about 20 other appraisers I asked about the shadow inventory and the response from the Fannie REO rep was like I had committed heresy and treason by broaching the subject. He hissed and said "There is no shadow inventory!" You're correct, the way they handle it is bizarre. It appears to be yet another example of where when no one is accountable nothing get resolved. It's incredibly wasteful.