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For September 2024, GSE issuance totaled $55.8BN, down 18.2% on August. For property valuations, $46.8BN (83.7%) closed using appraisals, down 19.6%, and $8.3BN (12.8%) closed utilizing appraisal waivers in September, down 10.2% on the prior month. Lenders delivered $821MM (1.47%) with inspection based waivers in September, down 13.6% on August.
Overall, inspection based waivers in September were 9.04% of the combined appraisal waiver (non-appraisal) solutions by loan balance. By number of loans delivered, inspection-based waivers were 10.6% of all waiver solutions.
Combined use of inspection based waivers and appraisal waivers in September was 16.3% by balance and 17.6% 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 September
Fannie Mae Valuation Acceptance + Property Data market share of inspection based appraisal waivers in September grew again to 54.3% on lower volume of $446MM. There are 392 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 209 independent mortgage companies and 112 banks and 72 credit unions. A total of 81 lenders issued loans using inspection based appraisal waivers in September with Valuation Acceptance + Property Data, up 28.6% on August.
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 394 lenders, including 176 community banks, 38 credit unions, and 216 non-banks. A total of 103 individual lenders issued loans using inspection based waivers in September with ACE+ PDR, down 34.4% on the prior month.
Production channel and top mortgage correspondents
Broker channel issuance was $9.5N in September with 117 lenders delivering loans. The correspondent channel issuance was $21.5N from 169 lenders and retail issuance was $24.8BN from 1,232 lenders.
For inspection based appraisal waivers in September, broker volume was $230M and 28.0% of loan delivered, down 14.5% from 25 lenders. The correspondent channel was up 2.8% to $157M and 19.1% of the overall volume from the prior month, from 28 aggregators. Retail channel utilization of inspection-based waivers in September dropped 17.8% to $435M (53.0%) of issuance from 115 lenders.
Top mortgage correspondents utilizing waivers
In a month where GSE issuance was down across-the-board, it is noteworthy that the correspondent channel delivered their largest single month of inspection based waivers since both GSE solutions became fully operational, and 19.1% of total issuance.
While GSE sellers have been slow to optimize usage of inspection based waivers, correspondents are steadily increasing usage. There are a total of 2,768 GSE correspondents who only sell to the GSEs via aggregators. Of these:
- Utilizing appraisal waivers – 1,925 correspondents, or 46.8%
- Utilizing inspection based appraisal waivers – 513 correspondents, or 18.5%
More about inspection based waivers in September
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.