Appraisal Waivers Explosion
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For all the talk about how important appraisers are to risk management by the GSEs, we really aren’t. There is a compelling blog post using AEI data by Ryan Lundquist over at Sacramento Appraiser Blog.
Appraisal waivers have really exploded in recent years – especially during the pandemic. But how many are there exactly? Let’s look at actual numbers to walk away with some perspective. These stats are from January 2021 from AEI.
- 47.4% of all Freddie Mac loans had a waiver
- 44.5% of all Fannie Mae loans had a waiver
- Waivers are far more common during refinances
- Only 10-12% of purchases had an appraisal waiver in January
- Non cash-out refinances have the most waivers (67-69%)
- The higher your loan-to-value, the lower your chance of a waiver
- Waivers have seen a dramatic increase during the pandemic