Fannie Mae published selling guide announcement.

Fannie Mae published Selling Guide announcement SEL-2023-02 communicating details to its Single-Family sellers about transitioning to a range of options to establish a property's market value, with the option matching the risk of the collateral and loan transaction. “We are on a journey of continuous improvement to make the home valuation process more efficient and accurate. As such, we are transitioning to a range of options to establish a property’s market value, with the option matching the risk of the collateral and the loan transaction,” Fannie Mae stated within the release. “The spectrum balances traditional appraisals with appraisal alternatives,” indicated the release with the guide update. With this update, Fannie Mae introduces the following options:

• "Value acceptance" is being used in conjunction with the term "appraisal waiver" to better reflect the actual process of using data and technology to accept the lender-provide value. We are moving away from implying that an appraisal is a default requirement.
• Value acceptance + property data is a new option that utilizes property data collection by a third party who conducts interior and exterior data collection on the subject property. The property data collection is used by the lender to confirm property eligibility and an appraisal is not required.
• Hybrid appraisals are based on interior and exterior property data collection by a vetted and trained third-party that is provided to an appraiser to inform the appraisal.

Desktop Underwriter® (DU®) will be updated the weekend of April 15, 2023 to support these updates.

Source: Fannie Mae