For October 2026, GSE issuance totaled $47.8BN, down 29.3% from September, and down 33.8% from October 2025. For property valuations, $37.4BN (78.3%) closed using appraisals, down 30.3%, and $8.79BN (18.4%) closed utilizing appraisal waivers, down 26.4% from the prior month.
Lenders delivered $1.57BN (3.29%) with inspection based appraisal waivers in October, down 19.4% from September, and down 15.1% from a year ago.
Inspection based appraisal waivers by loan count were 3.29% of issuance, down 17.1% over last month and down 15.1% from a year ago. This is the first month inspection based appraisal waivers have exceeded 3% of issuance.
Overall, inspection based waivers in October were 15.1% of the combined non-appraisal (waiver) solutions by loan balance, and 13.3% by loan count.
Combined use of inspection based waivers and appraisal waivers in October was 21.7% by balance and 24.7% by loan count.
Agency Share of Appraisal Inspection Waivers
Fannie Mae Valuation Acceptance + Property Data market share of inspection based waivers in October was 64.4% on volume of $1.01BN, down 7.1% from September. There are 556 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 2923 independent mortgage companies and 155 banks and 111 credit unions. A total of 182 lenders issued loans using inspection based appraisal waivers in October with Valuation Acceptance + Property Data, down 11.7% from September, and up 82.0% from the prior year.
Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based waivers in October was 35.6% on volume of $559MM, down 35.0% from September. Freddie Mac participation is at 551 lenders, including 215 banks, 50 credit unions, and 288 non-banks. A total of 156 individual lenders issued loans using inspection based waivers with ACE+ PDR, down 19.2% from September, and up 15.6% from the prior year.
Bank, Credit Union & Nonbank Appraisal Alternatives
For bank sellers, 672 (77.2%) have used appraisal waivers and 262 (36.5%) have used inspection based waivers to deliver loans to the GSEs in the past couple of years. In October 50.6% used appraisal waivers, up 1.9% from last year, and 12.8% used inspection based waivers, up 8.0% from a year ago.
For credit union sellers, 363 (77.1%) have used appraisal waivers and 145 (30.8%) have used inspection based waivers to deliver loans to the GSEs, again since 2023. In October 53.3% used appraisal waivers and 11.4% used inspection based waivers, down 5.1% and 3.5% respectively from a year ago.
For nonbank sellers, 578 (81.3%) have used appraisal waivers and 354 (49.8%) have used inspection based waivers to deliver loans to the GSEs. In October 73.6% used appraisal waivers, down 4.76% on last year, and 33.3% used inspection based appraisal waivers, up 36.2% from a year ago.
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Production channel
Broker channel issuance was $7.7BN (16.6%) in October, down 16.8% on last month, with 118 lenders delivering loans. Correspondent channel issuance was $13.9BN (29.1%), down 31.2% from the prior month, from 147 lenders. Retail issuance was $26.2BN (56.8%), down 31.1% from September, from 1,133 lenders.
For inspection based appraisal waivers in October, broker volume was $470MM (29.9%) down 1.4% from 40 sellers. The correspondent channel was $326MM (20.8%) down 20.1% from the prior month in the overall volume, from 38 aggregators. Retail channel utilization of inspection-based waivers was $776MM (49.3%) of issuance, down 27.2% from 201 lenders.
Loan Purpose
Purchase volume using inspection based appraisal waivers in October was $1.34BN (85.4%), down 19.8% from September, and up 21.4% from last year. Refinance (cash out) volume using inspection based appraisal waivers in September was $146MM (9.3%) down 9.9% from September, and down 26.3% from last year.
Refinance (limited or no cash out) volume using inspection based appraisal waivers in September was $84M (5.3%) down 27.0% from September, and down 84.7% from last year.
More about Appraisal Inspection Waivers in October
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.