What does the future hold for real estate appraisers?
Prevalence of GSE Appraisal Waivers May 2023 originations
The share of appraisal waivers for both GSEs combined for May 2023 stood at 13%, the same as last month but down 36 ppts. from its series’ peak in March 2021. However, Fannie has nearly double the waiver use as Freddie.
This decline was largely driven by a slowdown in waiver usage for refinance loans (especially by Freddie), as well as a share shift away from refinances, for which waiver usage is more prevalent.
Waivers are granted using a data-based analysis of the reasonableness of the applicant’s self valuation. The data measure whether an appraisal waiver was used, not only granted, on the loan.