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For October 2024, GSE issuance totaled $66.2BN, up 18.5% on September. For property valuations, $53.7BN (81.1%) closed using appraisals, up 14.8%, and $11.4BN (17.3%) closed utilizing appraisal waivers in October, up 38.1% on the prior month. Lenders delivered $1.09BN (1.64%) with inspection based waivers in October, up 32.1% on September, and surpassing $1BN in monthly issuance for the first time.
Overall, inspection based waivers in October were 8.7% of the combined appraisal waiver (non-appraisal) solutions by loan balance. By number of loans delivered, inspection-based waivers were 10.5% of all waiver solutions.
Combined use of inspection based waivers and appraisal waivers in October was 18.9% by balance and 20.1% by loan count – the highest share of valuations since the ACE+ PDR and Valuation Acceptance + Property Data solutions started, albeit on 16.2% lower number of loans than the prior month.
Agency share of appraisal waivers in October
Fannie Mae Valuation Acceptance + Property Data market share of inspection based appraisal waivers in October grew again to 59.4% on increased volume of $659MM. There are 396 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 213 independent mortgage companies and 112 banks and 72 credit unions. A total of 72 lenders issued loans using inspection based appraisal waivers in October with Valuation Acceptance + Property Data, down 11.1% on September.
Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based appraisal waivers in September was 45.7% a drop in volume to $452MM of 9.5%. Freddie Mac participation remained at 413 lenders, including 159 community banks, 32 credit unions, and 224 non-banks. A total of 130 individual lenders issued loans using inspection based waivers in September with ACE+ PDR, up 26.2% on the prior month.
Production channel
Broker channel issuance was $12.8N in October with 121 lenders delivering loans. The correspondent channel issuance was $20.4N from 181 lenders and retail issuance was $33.0BN from 1,268 lenders.
For inspection based appraisal waivers in October, broker volume was $377M and 24.7% of loan delivered, up 63.8% from 25 lenders. The correspondent channel was down 2.9% to $152M and 14.0% of the overall volume from the prior month, from 27 aggregators. Retail channel utilization of inspection-based waivers in October jumped 28.0% to $557M (51.0%) of issuance from 138 lenders.
Refinances drive appraisal alternatives
Of $66.1BN total issuance in October, cash out refinances grew 21.8% to $5.86BN and non cashout refinances grew 120.4% to $9.75BN. Purchase grew 8.5% to $50.6BN.
For non cashout refinances, appraisal waivers grew 156.6% to $4.4BN, and inspection based waivers grew 176.6% to $284MM, making October the largest month for appraisal alternatives in over 2 years.
More about inspection based waivers in October
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:
- Implementing the Freddie Mac Inspection-based Waivers – Quick Reference for Lenders
- Implementing the Fannie Mae Inspection-based Waivers – Quick Reference for Lenders
In addition, you can access the Freddie Mac ACE+ PDR Solution page and the Fannie Mae Value Acceptance + Property Data FAQ.