Appraisal Waivers in August Highest on Rocket Mortgage Utilization

appraisal waivers in August

For August 2024, GSE issuance totaled $68.3BN, up 16.3% on July. For property valuations, $58.1BN (85.1%) closed using appraisals, up 15.5%, and $9.2BN (13.5%) closed utilizing appraisal waivers in August, up 22.8% on the prior month. Lenders delivered $951MM (1.39%) with inspection based waivers in August, up 3.9% on July.

Overall, inspection based waivers in August were 9.36% of the combined appraisal waiver (non-appraisal) solutions by loan balance. By number of loans delivered, inspection-based waivers were 12.6% of all waiver solutions.

Combined use of inspection based waivers and appraisal waivers in August was 14.9% by balance and 16.5% by loan count – the highest month since the ACE+ PDR and Valuation Acceptance + Property Data solutions started.

Agency share of appraisal waivers in August

Fannie Mae Valuation Acceptance + Property Data market share of inspection based appraisal waivers in August jumped to 52.5% and $499MM, a rise of 20.1%. There are 387 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 206 independent mortgage companies and 111 banks and 70 credit unions, remained the same as the prior month. A total of 63 lenders issued loans using inspection based appraisal waivers in August with Valuation Acceptance + Property Data.

Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based appraisal waivers in August was 47.5% a drop in volume to $452MM of 9.5%. Freddie Mac participation increased to 390 lenders, including 149 community banks, 29 credit unions, and 214 non-banks. A total of 157 individual lenders issued loans using inspection based waivers in August with ACE+ PDR.

Production channel and top mortgage correspondents

Broker channel issuance was $9.5N in August with 119 lenders delivering loans. The correspondent channel issuance was $24.1N from 180 lenders and retail issuance was $34.3BN from 1,278 lenders.

For inspection based appraisal waivers in August, broker volume was $269M and 28.3% of loan delivered, up 7.2% from 30 lenders. The correspondent channel was up 8.6% to $152M and 16.0% of the overall volume from the prior month, from 37 aggregators. Retail channel utilization of inspection-based waivers in August also increased 1.1% to $529M (57.2%) of issuance from 142 lenders.

Rocket Mortgage leads the way in appraisal waivers

As an early adopter, Rocket Mortgage appears to optimize use of appraisal waivers and inspection based waivers for their customers. This chart shows Rocket Mortgage compared to all other lenders.

appraisal waivers in august

More about inspection based appraisal waivers in August

For lenders who wish to learn more, you can check out the the following articles. These include links to the Freddie Mac ACE+ PDR and Fannie Mae Valuation Acceptance and collateral valuation modernization strategies, new programs, selling guide updates, FAQs, process flow, job aids, approved technology and service providers, and information about the property data standards and user guides:

In addition, you can access the Freddie Mac ACE+ PDR Solution page and the Fannie Mae Value Acceptance + Property Data FAQ.