Breaking news: upcoming changes in the mortgage industry that might affect our work as loan officers, brokers, real estate agents - and most of all, appraisers. It's called Value Acceptance + Property Data. The bots are coming, kinda.
Fannie Mae is launching a new automated appraisal product on April 15.
The program is called "Value Acceptance + Property Data" and will use handheld technology to collect data on homes and properties.
The program won't need a state-licensed appraiser to do the job.
It's not clear yet what the new system will cost borrowers.
Fannie Mae will largely dictate home values across America once this program is fully implemented.
Roughly two-thirds of residential property valuations are aimed at Fannie and Freddie Mac mortgages.
The mortgage industry is likely to fall in line with this new program.
Potential downsides include challenges to Fannie's appraisal conclusions and concerns about racially biased appraisals.
The White House and the Department of Housing and Urban Development have created a task force to address these concerns.
The new system could offer opportunities such as faster and cheaper appraisals, more accuracy, and addressing the shortage of appraisers
Fannie Mae is launching a new automated appraisal product: Value Acceptance + Property Data.
This new program, called “Value Acceptance + Property Data,” will use handheld technology to collect data on homes and properties, and it won't need a state-licensed appraiser to do the job.
Now, we don’t know yet what this new appraisal system will cost borrowers, but what we do know is that it will give Fannie Mae even more power in dictating home values across America.
Roughly two-thirds of residential property valuations are aimed at Fannie and
Freddie Mac mortgages, it's likely that the mortgage industry will fall in line with this new program.
However, we need to consider the potential downsides of this new system.
What if Fannie's algorithm determines that a home is worth less than what the owner thinks it is?
Will stakeholders be able to challenge Fannie's appraisal conclusions?
Also, there is a rising concern about racially biased appraisals, which is why the White House and the Department of Housing and Urban Development have created a task force to look into disparities in home appraisals.
Despite these challenges, Fannie Mae's new system could offer some opportunities for borrowers.
It may be faster and cheaper than traditional appraisals.
It could also be more accurate than the current system, which sometimes suffers from racial biases.
It may help to address the shortage of appraisers, as many of them are aging out of the industry.
My advice, keep an eye on these changes and how they might affect our work as loan officers agents buyers and sellers. It's always important to stay informed and adapt to new circumstances.
Have questions about your home buying power? Let's talk. To know is to overcome.