Under the current Fannie Mae Selling Guide, what is the current name of the DU option under which an appraisal is not required for an eligible loan casefile when the lender properly exercises the offer?
Correct Answer
A) Value acceptance.
Value acceptance is the current name of the eligible-casefile DU option under which an appraisal is not required. Earlier names for this kind of offer, such as property inspection waiver and appraisal waiver, are retired. The lender must still satisfy the applicable conditions; an offer is not an unconditional exemption from all collateral obligations. Desktop and hybrid appraisals are still appraisals, not names for that waiver option.
Why This Is the Correct Answer
Value acceptance is the current name of the eligible-casefile DU option under which an appraisal is not required. Earlier names for this kind of offer, such as property inspection waiver and appraisal waiver, are retired. The lender must still satisfy the applicable conditions; an offer is not an unconditional exemption from all collateral obligations. Desktop and hybrid appraisals are still appraisals, not names for that waiver option.
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Previous Question
A bank's existing loan on a retail building has $2.5 million outstanding. The borrower asks to refinance for $2.8 million, and local market conditions have changed obviously and materially in a way that threatens the bank's collateral protection. No other exemption applies. Under the Interagency Guidelines, what does the bank need?
Next Question
The intended lender’s applicable assignment conditions require an interior inspection. The client asks the appraiser to deliver a desktop appraisal instead, and the inspection condition has not been authorized for modification. What should the appraiser do?