Inspection Based Waivers In July – Now $1.96BN

For July 2026, GSE issuance totaled $71.1BN, up 7.1% from June, and up 9.3% from July 2025. For property valuations, $56.5BN (79.4%) closed using appraisals, up 9.6%, and $12.7BN (17.8%) closed utilizing appraisal waivers, up 6.3% from the prior month.

Lenders delivered $1.96BN (2.75%) with inspection based appraisal waivers in July, up 23.8% from June, and up 59.3% from a year ago. This is single largest month of issuance using inspection-based waivers since the solutions were introduced by the GSEs. By loan count inspection based appraisal waivers were 3.01% of issuance, up 12.2% over last month.

Overall, inspection based waivers in July were 13.4% of the combined non-appraisal solutions by loan balance. By loan count, inspection-based waivers represented 13.0% of all waiver solutions.

Combined use of inspection based waivers and appraisal waivers in July was 20.6% by balance and 23.1% by loan count.

Agency share of appraisal waivers in July

Fannie Mae Valuation Acceptance + Property Data market share of inspection based waivers in July was 54.7% on volume of $1,071MM, down 9.8% from June. There are 540 lenders who have delivered loans through Fannie Mae Valuation Acceptance + Property Data, including 285 independent mortgage companies and 150 banks and 108 credit unions. A total of 183 lenders issued loans using inspection based appraisal waivers in July with Valuation Acceptance + Property Data, down 6.2% from June, and up 96.8% from the prior year.

Freddie Mac ACE+ PDR (Automated Collateral Evaluation plus Property Data Report) market share for inspection based waivers in July was 45.3% on volume of $887MM, up 46.3% from June. Freddie Mac participation is at 534 lenders, including 211 banks, 46 credit unions, and 279 non-banks. A total of 175 individual lenders issued loans using inspection based waivers with ACE+ PDR, up 21.5% from June, and up 49.6% from the prior year.

Bank, Credit Union & Nonbank appraisal alternatives

For bank sellers, 660 (73.4%) have used appraisal waivers and 256 (28.5%) have used inspection based waivers to deliver loans to the GSEs in the past couple of years. In July 48.6% used appraisal waivers and 12.1% used inspection based waivers, up 9.4% and down 62.2% respectively from a year ago.

For credit union sellers, 357 (76.3%) have used appraisal waivers and 141 (30.1%) have used inspection based waivers to deliver loans to the GSEs, again since 2023. In July 51.4% used appraisal waivers and 12.1% used inspection based waivers, up 16.1% and up 116.3% respectively from a year ago.

For nonbank sellers, 570 (81.2%) have used appraisal waivers and 348 (49.6%) have used inspection based waivers to deliver loans to the GSEs. In July 74.9% used appraisal waivers and 34.1% used inspection based appraisal waivers, up 6.5% and 41.5% respectively from a year ago.

Production channel

Broker channel issuance was $12.1BN (17.0%) in July, up 16.2% on last month, with 118 lenders delivering loans. Correspondent channel issuance was $23.8BN (33.5%), up 12.0% from the prior month, from 167 lenders. Retail issuance was $35.1BN (49.4%), up 5.5% from June, from 1,212 lenders.

For inspection based appraisal waivers in July, broker volume was $592MM (30.2%) up 31.9% from 43 sellers. The correspondent channel was $437MM (22.3%) up 18.6% from the prior month in the overall volume, from 38 aggregators. Retail channel utilization of inspection-based waivers was $929M (47.4%) of issuance, up 21.4% from 212 lenders.

Loan Purpose

Purchase volume using inspection based appraisal waivers in July was $1.62BN (82.3%), up 35.2% from June, and up 70.0% from last year. Refinance (cash out) volume using inspection based appraisal waivers in July was $160MM (8.9%) down 8.1% from June, and down 15.8% from last year. Refinance (limited or no cash out) volume using inspection based appraisal waivers in July was $185M (9.47%) down 13.8% from June, and up 106.1% from last year.

More about inspection based waivers in July