Does every loan delivered to Fannie Mae require an appraisal? What if the transaction is a refinance and we have a recent appraisal on file? In some cases, we may be willing to waive the appraisal.

Property inspection waiver (PIW) is an offer to waive the appraisal for certain refinance transactions. PIW offers are issued through Desktop Underwriter® (DU®) using Fannie Mae’s database of more than 23 million appraisal reports in combination with proprietary analytics from Collateral Underwriter® (CU™) to determine the minimum level of property valuation required for loans delivered to us.

How it works
PIW is available to all lenders through DU. There are no prerequisites and no registration process.

When a DU loan casefile receives a PIW offer and it is exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the market value for the subject property and provides relief from enforcement of representations and warranties on the value, condition, and marketability of the property. The lender is required to represent and warrant that the data (other than the value estimate) submitted to DU is complete and accurate, and lenders must order an appraisal if they have reason to believe that the property’s current market value should be confirmed. For example, a property located in an area impacted by a recent disaster should always have an appraisal.

Purchase transactions and the majority of refinance transactions will not receive a PIW offer, which means they require an appraisal by a qualified residential appraiser to establish the market value.

This summary is intended for reference only. All criteria are subject to the formal terms and conditions of the Fannie Mae Selling Guide. In the event of any conflict with this document, the Selling Guide will govern.

Benefits of exercising a PIW

  • Increased operational efficiencies. A PIW can shorten the loan origination process by eliminating the need to obtain and review an appraisal.
  • Day 1 Certainty™. Exercising a PIW offer relieves the lender from enforcement of representations and warranties on the value, condition, and marketability of the property.
  • Reduced loan origination costs. A PIW provides a no-cost alternative to an appraisal, while eliminating the expense of appraisal-related delays in the origination process.
  • Ease-of-use. To exercise a PIW offer, lenders simply provide Special Feature Code (SFC) 801 at time of loan delivery to Fannie Mae.

Eligible and ineligible transactions

*DU Refi Plus loan casefiles continue to be eligible for the DU Refi Plus property fieldwork waiver (PFW).

How to exercise a PIW offer
To exercise a PIW offer on a loan casefile that is eligible for a PIW, the lender must, at time of delivery, include the Fannie Mae casefile ID and SFC 801 in the loan delivery file to receive representation and warranty relief. Additionally, the PIW offer may not be more than four months old on the date of the note and the mortgage.

If a lender chooses not to exercise the PIW, at a minimum, the lender is required to follow DU’s appraisal recommendations to deliver the loan to Fannie Mae.

For more information
For more information reach out to your account team or call 1-800-2FANNIE (1-800-232-6643), Option 1 (technology support).

Information is also available at

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