Allows property inspection waiver on some low LTV loans
Fannie Mae is now following suit in the appraisal-free arena by
allowing property waiver inspections on some purchase loans.
Last week, Freddie Mac extended its appraisal-free mortgage program to its purchase loans, announcing it will go into effect on September 1, 2017.
Shortly afterward, Fannie issued its announcement: Property Inspection Waivers will be allowed on mortgages with low loan-to-value ratios. The GSE explained the change will allow lenders to offer better efficiency and cost savings.
The CEO Timothy Mayopoulos hinted that changes were coming when he first told HousingWire that Fannie Mae was looking to speed up the appraisal process.
Back in 2016, Fannie began offering appraisal-free mortgages on some of its refinances through its Day 1 Certainty program.
This will reduce the time it takes to close a loan, making it easier for lenders and borrowers alike, Fannie explained. Buyers will still have th...