For August 2025, GSE issuance totaled $65.5BN, up 14.6% from July, and down 6.7% from August 2024. For property valuations, $53.0BN (81.0%) closed using appraisals, up 13.0%, and $11.0BN (16.7%) closed utilizing appraisal waivers, up 20.6% from the prior month.
Lenders delivered $1.55BN (2.36%) with inspection based appraisal waivers in August, up 25.8% from July. This is the fifth consecutive month with over $1 billion loan balance issued, and highest month since programs began. By loan count inspection based appraisal waivers were 2.56% of issuance, up 21.8%.
Overall, inspection based waivers in August were 11.9% of the combined non-appraisal solutions by loan balance. By loan count, inspection-based waivers represented 12.7% of all waiver solutions. The use of inspection based appraisal waivers in August was up 33.8% from 12 months ago.
Combined use of inspection based waivers and appraisal waivers in July was 19.1% by balance and 20.2% by loan count.
Agency share of appraisal waivers in August
Fannie Mae Valuation Acceptance + Property Data market share of inspection based waivers in August was 54.4% on volume of $841MM, up 12.8% from July. There are 424 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 230 independent mortgage companies and 118 banks and 78 credit unions. A total of 90 lenders issued loans using inspection based appraisal waivers in July with Valuation Acceptance + Property Data, down 3.23% from July, but up 42.9% from the prior year.
Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based waivers in July was 45.6% on volume of $705MM, up 45.9% from July. Freddie Mac participation is at 491 lenders, including 193 banks, 42 credit unions, and 256 non-banks. A total of 147 individual lenders issued loans using inspection based waivers with ACE+ PDR, up 25.6% from July.
Bank, Credit Union & Nonbank appraisal alternatives
For bank sellers, 70.4% have used appraisal waivers and 26.4% have used inspection based waivers to deliver loans to the GSEs in the past couple of years. In August 49.7% used appraisal waivers and 8.1% used inspection based waivers.
For credit union sellers, 73.5% have used appraisal waivers and 24.9% have used inspection based waivers to deliver loans to the GSEs, again since 2023. In August 44.0% used appraisal waivers and 6.2% used inspection based waivers.
For nonbank sellers, 80.0% have used appraisal waivers and 46.8% have used inspection based waivers to deliver loans to the GSEs. In August 74.4% used appraisal waivers and 26.3% used inspection based appraisal waivers.
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Production channel
Broker channel issuance was $10.6BN in August with 120 lenders delivering loans, up 23.0% on last month. Correspondent channel issuance was $21.9BN from 185 lenders, also up 29.4%. Retail issuance was $33.0BN from 1,226 lenders, up 1.4% from July.
For inspection based appraisal waivers in August, broker volume was $608M and 39.4% of loans delivered, up 24.7% from 31 sellers. The correspondent channel was $244MM and 15.8%, up 41.7% from the prior month in the overall volume, from 31 aggregators. Retail channel utilization of inspection-based waivers was up 22.0% to $694MM at 44.9% of issuance from 153 lenders.
Top lender utilization of waivers
For 2025 year-to-date, the market-level utilization by loan count of appraisal waivers is 16.2% and for inspection based waivers 2.46%. 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 August
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.