For September 2025, GSE issuance totaled $63.2BN, down 3.5% from August, and up 37.9% from September 2024. For property valuations, $50.1BN (79.3%) closed using appraisals, down 5.4%, and $11.7BN (18.5%) closed utilizing appraisal waivers, up 6.5% from the prior month.
Lenders delivered $1.44BN (2.28%) with inspection based appraisal waivers in September, down 6.9% from August. This is the 6th consecutive month with over $1 billion loan balance issued, and 2nd highest month since programs began. By loan count inspection based appraisal waivers were 2.43% of issuance, down 11.0%.
Overall, inspection based waivers in September were 11.9% of the combined non-appraisal solutions by loan balance. By loan count, inspection-based waivers represented 11.2% of all waiver solutions. The use of inspection based appraisal waivers in September was up 39.0% from 12 months ago.
Combined use of inspection based waivers and appraisal waivers in August was 20.7% by balance and 21.7% by loan count.
Agency share of appraisal waivers in September
Fannie Mae Valuation Acceptance + Property Data market share of inspection based waivers in September was 53.0% on volume of $762MM, down 9.4% from August. There are 427 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 231 independent mortgage companies and 119 banks and 80 credit unions. A total of 93 lenders issued loans using inspection based appraisal waivers in August with Valuation Acceptance + Property Data, up 3.3% from August, but up 13.4% from the prior year.
Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based waivers in September was 47.1% on volume of $677MM, down 4.1% from August. Freddie Mac participation is at 497 lenders, including 196 banks, 43 credit unions, and 258 non-banks. A total of 144 individual lenders issued loans using inspection based waivers with ACE+ PDR, down 2.0% from August.
Bank, Credit Union & Nonbank appraisal alternatives
For bank sellers, 71.0% have used appraisal waivers and 26.7% have used inspection based waivers to deliver loans to the GSEs in the past couple of years. In September 49.5% used appraisal waivers and 8.4% used inspection based waivers.
For credit union sellers, 73.9% have used appraisal waivers and 24.4% have used inspection based waivers to deliver loans to the GSEs, again since 2023. In September 47.5% used appraisal waivers and 7.14% used inspection based waivers.
For nonbank sellers, 80.0% have used appraisal waivers and 46.7% have used inspection based waivers to deliver loans to the GSEs. In September 74.8% used appraisal waivers and 24.8% used inspection based appraisal waivers.
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Production channel
Broker channel issuance was $10.2BN in September with 115 lenders delivering loans, down 4.2% on last month. Correspondent channel issuance was $21.5BN from 180 lenders, down 1.7%. Retail issuance was $31.5BN from 1,228 lenders, down 4.6% from August.
For inspection based appraisal waivers in September, broker volume was $592M and 41.2% of loans delivered, down 2.6% from 31 sellers. The correspondent channel was $232MM and 16.1%, down 4.8% from the prior month in the overall volume, from 24 aggregators. Retail channel utilization of inspection-based waivers was down 11.5% to $614MM at 42.7% of issuance from 145 lenders.
Top lender utilization of waivers
For 2025 year-to-date, the market-level utilization by loan count of appraisal waivers is 19.0% and for inspection based waivers 2.8%. Volume is heavily skewed to top banks and nonbank lenders who have optimized, and in a few cases, automated production processes to take advantage of any waivers offered by the GSEs.
More about inspection based waivers in September
For lenders who wish to learn more, you can check out 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.