The recent Fannie Mae Announcement SEL-2018-07 (“Announcement 2018-07”) states that during the weekend of December 8-9, 2018, Fannie Mae will implement Desktop Underwriter Version 10.3 (“DU”), which would permit a waiver of appraisals for home purchase transactions in rural high-needs areas.
Before implementing any change, ServiSolutions is reviewing the Announcement 2018-07, including the requirements in relation to the Home Inspection Report requirements, to confirm that the property would meet Fannie Mae property condition guidelines for safety, soundness, and structural integrity. We plan to adjust to the new Fannie Mae guidance soon; however, until the option is adopted ServiSolutions will continue to require a full appraisal as a condition of loan eligibility for purchase.
Therefore, and during this interim period, ServiSolutions is updating its
Loan Delivery Guidelines to include the following provision:
Rural High-Needs Appraisal Waiver
Fannie Mae Announcement SEL-2018-07 (“Announcement 2018-07”) states that Fannie Mae will offer appraisal waivers for certain home purchase transactions in designated rural high-needs areas.
DU will issue the rural appraisal waiver, when applicable, on DU Version 10.2 and 10.3 loan casefiles submitted or resubmitted on or after the weekend of December 8, 2018.
ServiSolutions is currently reviewing and assessing implementation requirements for Announcement 2018-07. Until a final determination on implementation is made, ServiSolutions will confirm and preserve its existing appraisal requirements by implementing an underwriting overlay that requires a full interior/exterior appraisal on Form 1004, consistent with current practice, regardless of whether a home is eligible for a rural appraisal waiver under Announcement 2018-07. Loans delivered without a full appraisal will not be eligible for purchase.