Fannie Mae has launched its new appraisal modernization program, Value Acceptance + Property Data. This appraisal waiver program is a great solution for consumers and lenders alike. It can save the time and cost associated with a traditional appraisal and allow buyers to receive a home loan faster.
But how does this program work? What are the benefits, requirements for eligibility, and how can you get started with Value Acceptance + Property Data? Our recent webinar, How to adopt Fannie Mae’s Value Acceptance + Property Data program, discussed the program and covered lenders’ most frequently asked questions.
Read on for answers to the most-asked questions regarding Value Acceptance + Property Data.
1. What are the benefits of using Value Acceptance + Property Data?
This program provides lenders with operational certainty, reduces consumer cycle times, and helps to prepare the industry for a future where hybrid appraisals will use the same property data collections as Value Acceptance + Property Data.
2. What is property data collection?
The property data collection (PDC) consists of a standardized interior and exterior inspection requiring the comprehensive capture of property data, photos, and a floor plan. It requires 120 data points describing the property, 40–60 photos, and an ANSI-compliant floor plan.
3. Is there a list of approved vendors? Are there any published training requirements for approved vendors?
Fannie Mae has a list of approved vendors that is updated regularly as new vendors join the program. At this point, there are no specific training requirements, but Fannie Mae does require that property data collectors be professionally trained and complete an annual background check. Fannie Mae will judge vendors based on the quality of their data during a robust quality control process.
4. What qualifications are necessary for someone to be approved as a property data collector for Value Acceptance + Property Data?
Fannie Mae doesn’t currently have published training requirements for approved vendors, but requires that data collectors be professionally trained and complete an annual background check.
Clear Capital’s property data collectors need a real estate license and must be in good standing with their state board. They must also complete Clear Capital’s certification process, which includes completing web-based training modules, a sample report, and a quality check. Clear Capital also monitors performance through automated performance scoring models to ensure data collectors maintain high quality standards.
5. Are there controls to ensure data collectors are not biased in relation to the transaction? Are they also involved in the sale of these properties?
Clear Capital ensures that the real estate agent who is performing the data collection services is not a party in the transaction. That is a requirement and we perform due diligence on each transaction to ensure that the real estate agent collecting the data is not part of the office involved in the listing.
6. Is there a list of ineligible vendors, like there is with appraisers?
No there isn’t. There is only the approved vendor list.
7. Do lenders need to review the property data collection (PDC)?
Yes, lenders are responsible for performing quality checks in two stages — pre-funding and post-closing. The quality check requirements are essentially the same as they are for any other loan.
8. What is the typical cost of participating in Value Acceptance + Property Data?
Using Value Acceptance + Property Data is around a third the cost of a traditional appraisal.
9. How do I adopt Value Acceptance + Property Data?
Ensure your loan origination software can identify the new special feature code required for participation in the program (special feature code 774). You can use Clear Capital’s Universal Data Collection™ (UDC™) to adopt Value Acceptance + Property Data. There are several ways to easily order UDC.
Firstly, you can submit a request to get set up to quickly place UDC orders through Clear Capital. Secondly, you can order UDC through our integration with Encompass® by ICE Mortgage Technology®. Thirdly, we have integrations with nearly every appraisal order management system — allowing you to order through your preferred company. Technology companies looking for partners can also work with Clear Capital.
