Fannie Mae Provides Updates Regarding Valuation Modernization

Today, Fannie Mae published Selling Guide announcement SEL-2023-02 communicating details to its Single-Family sellers about transitioning to a range of options to establish a property's market value, with the option matching the risk of the collateral and loan transaction. With this update, Fannie Mae is introducing the following:

• "Value Acceptance" is being used in conjunction with the term "appraisal waiver" to better reflect the actual process of using data and technology to accept the lender-provided value. We are moving away from implying that an appraisal is a default requirement.
• Value Acceptance + Property Data is a new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. The property data collection is used by the lender to confirm property eligibility and an appraisal is not required.
• Hybrid Appraisals are based on interior and exterior property data collection by a vetted and trained third-party that is provided to an appraiser to inform the appraisal.

Desktop Underwriter® (DU®) will be updated the weekend of April 15, 2023 to support these updates. Please refer to the Selling Guide announcement for additional information.

Disclosure Update (April 20, 2023)

Fannie Mae will disclose its VA+PD program in the "Other" enumeration within the Property Valuation Method attribute in its Single-Family mortgage-backed securities (MBS) disclosures. VA+PD is currently the only active program disclosed in the "Other" enumeration.

For questions, please contact the Fannie Mae Investor Help line at 1-800-232-6643, Option 3, or by email.