Freddie Mac Extends Appraisal-free Mortgage Program To Purchase Loans

[Wayne Henry]

Freddie Mac extends appraisal-free mortgage program to purchase loans

With no representation in congress and the Appraisal Institute sleeping, we might not be around for long.

https://www.housingwire.com/article...aisal-free-mortgage-program-to-purchase-loans

 

[hastalavista]

Wayne-

This issue was brought up in another thread (the AI asleep at the wheel).
That isn't the case.

http://www.appraisalinstitute.org/file.aspx?Document=FHFA_follow_up_-_5-30.pdf

There are a lot of reasons to not like the AI. But "asleep" in regard to the no-appraisal requirement isn't one of them.

 

[J Grant]

Its' been posted before , applies to a very limited set of properties that have an appraisal already done.

At the same time it is good to be aware of it as a trend ( and then folks have to wonder why virtually nobody is training on res end? )

 

[DWiley]

Its' been posted before , applies to a very limited set of properties that have an appraisal already done.

At the same time it is good to be aware of it as a trend ( and then folks have to wonder why virtually nobody is training on res end? )

The prior appraisal criteria does not apply to the Freddie program. Fannie and Freddie have very different criteria regarding the properties that qualify for the PIW.

 

[J Grant]

Thank you for the clarification. What is the criteria for the Freddie program (if known ) for waiver of appraisals for purchases?

 

[DWiley]

Thank you for the clarification. What is the criteria for the Freddie program (if known ) for waiver of appraisals for purchases?

I do not know. Freddie was not as transparent as Fannie in the discussion of their criteria.

 

[gregb]

http://www.freddiemac.com/learn/pdfs/uw/ace.pdf

 

[J Grant]

http://www.freddiemac.com/learn/pdfs/uw/ace.pdf

Clear as mud ( at least to me). But it sounds like a fairly generous group of properties qualify for the appraisal waiver.

I wonder if borrower income/credit/amount down matters, or it is all about the property qualifying?

I wonder how it will be handled if Freddies' proprietary evaluation estimate comes in lower than a SC price or refinance threshold? However unless I misunderstood it, seems like some properties wont' need an evaluation if they have a score of 89 or better per their chart?

 

[timd354]

Clear as mud ( at least to me). But it sounds like a fairly generous group of properties qualify for the appraisal waiver.

I wonder if borrower income/credit/amount down matters, or it is all about the property qualifying?

I wonder how it will be handled if Freddie's proprietary evaluation estimate comes in lower than a SC price or refinance threshold? However unless I misunderstood it, seems like some properties wont' need an evaluation if they have a score of 89 or better per their chart?

The Freddie appraisal waiver program is much tighter in many than the Fannie PIW program. For instance, Freddie will not do an appraisal waiver for >80% LTV, nor will Freddie do an appraisal waiver on condos (both of which Fannie will do). Additionally, Freddie will not do appraisal waivers for cash-out refis or investment properties which Fannie will do at low LTV's.

Freddie's recent announcement states that they will soon be expanded the appraisal waiver to certain purchases, but they have not yet released the details of exactly what type of properties and transactions will be eligible for a purchase appraisal waiver

 

[timd354]

Freddie Mac extends appraisal-free mortgage program to purchase loans

With no representation in congress and the Appraisal Institute sleeping, we might not be around for long.

https://www.housingwire.com/article...aisal-free-mortgage-program-to-purchase-loans

Fannie just announced that they are also expanding PIW's to purchases:

Desktop Underwriter/Desktop Originator Release Notes
DU Version 10.0 and 10.1 August Update
August 18, 2017
Fannie Mae will update Desktop Underwriter® (DU®) August 19, 2017. Purchase transactions will now be eligible for consideration to receive Property Inspection Waiver offers.
The enhancements will apply to DU Version 10.0 and DU Version 10.1 loan casefiles submitted or resubmitted on or after August 19, 2017.

https://www.fanniemae.com/content/notification/notification-du-do-release-notes-08192017