MAY 7TH, 2018
No-appraisal mortgages made up 5% (60,000) of Fannie Mae's home-loan acquisitions in 2017. It is estimated that property appraisal waivers saved consumers roughly $30 million in appraisal fees last year. Whereas the benefits to both consumers and loan officers are obvious, these appraisal waivers may also have some cons. Many appraisal companies state these loan could potentially be dangerous because technology is not nearly as thorough as a professional appraiser.
Takeaway: MLO's play a massive role in giving sound financial advise to homeowners. It is always worth mentioning both the benefits (no cost, quicker process) and the risks (over- or under-evaluation) of no-appraisal mortgages and guiding the borrower to make an informative decision on what makes the most sense for them.