More than $1.1BN of inspection based waivers in November

For November 2024, GSE issuance totaled $67.5BN, up 2.04% on October. For property valuations, $54.2BN (80.3%) closed using appraisals, up 1.06%, and $12.2BN (18.0%) closed utilizing appraisal waivers, up 6.63% on the prior month. Lenders delivered $1.12BN (1.65%) with inspection based waivers in November, up 2.7% on October, and surpassing $1BN in monthly issuance for the second consecutive month.

Overall, inspection based waivers in November were 8.4% of the combined appraisal waiver (non-appraisal) solutions by loan balance. By number of loans delivered, inspection-based waivers were 10.1% of all waiver solutions.

Combined use of inspection based waivers and appraisal waivers in November was 19.7% by balance and 20.7% by loan count – the highest share of valuations since the ACE+ PDR and Valuation Acceptance + Property Data solutions started.

Agency share of appraisal waivers in November

Fannie Mae Valuation Acceptance + Property Data market share of inspection based appraisal waivers in November was 57.7% on volume of $637MM, a small decrease of 3.3%. There are 398 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 214 independent mortgage companies and 113 banks and 72 credit unions. A total of 69 lenders issued loans using inspection based appraisal waivers in November with Valuation Acceptance + Property Data, down 4.2% on October.

Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based appraisal waivers in November was 42.3% a jump in volume to $477MM of 12.0%. Freddie Mac participation is at 436 lenders, including 174 community banks, 33 credit unions, and 231 non-banks. A total of 175 individual lenders issued loans using inspection based waivers with ACE+ PDR, up 34.6% on the prior month.

Bank, credit union & nonbank using appraisal alternatives

For bank sellers year-to-date, 69.0% have used appraisal waivers and 25.1% have used inspection based waivers to deliver loans to the GSEs. In November 47.2% used appraisal waivers and 10.0% used inspection based waivers. The number of banks using appraisal alternatives in November was the highest for 2024.

For credit union sellers year-to-date, 72.4% have used appraisal waivers and 23.4% have used inspection based waivers to deliver loans to the GSEs. In November 41.4% used appraisal waivers and 6.4% used inspection based waivers.

For nonbank sellers year-to-date, 79.3% have used appraisal waivers and 44.7% have used inspection based waivers to deliver loans to the GSEs. In November 68.7% used appraisal waivers and 24.9% used inspection based waivers. The number of nonbanks using appraisal alternatives in November was the highest for 2024.

Production channel

Broker channel issuance was $11.3N in November with 135 lenders delivering loans. The correspondent channel issuance was $22.8N from 194 lenders and retail issuance was $33.4BN from 1,294 lenders.

For inspection based appraisal waivers in November, broker volume was $359M and 32.2% of loan delivered, down 4.6% from 34 lenders. The correspondent channel was up 10.5% to $168M and 15.1% of the overall volume from the prior month, from 31 aggregators. Retail channel utilization of inspection-based waivers jumped 28.0% to $588M (52.7%) of issuance from 168 lenders.

Refinances fuel appraisal alternatives

Of $67.5BN total issuance in November, cash out refinances grew increasing 7.8% to $6.3BN and non cash out refinances grew 32.1% to $12.9BN. In the same period purchase decreased 4.4% to $48.3BN.

For non cash out refinances, appraisal waivers continued growing, up 26.8% to $6.0BN, and inspection based waivers grew 26.1% to $358MM, making November the largest month for appraisal alternatives since the start of 2023.

More about inspection based waivers in November