Fannie Mae’s DU offers standard value acceptance on a refinance. The lender exercises the offer, all applicable conditions are satisfied, and no legal or other requirement demands an appraisal. What does this mean for the appraisal requirement?
Correct Answer
B) Fannie Mae accepts the submitted value without requiring an appraisal for this transaction
B. An appraisal is not required under the exercised standard offer. The scenario establishes both an eligible offer and its proper exercise. This is not a substitution of an exterior-only appraisal for an interior appraisal. Scope and exceptions: An offer cannot override a legal appraisal requirement or known disqualifying information. This question does not address value acceptance plus property data or declare that all lender obligations disappear. Source: B4-1.4-10, Overview; Ineligible Transactions; Representations and Warranties; Exercising Value Acceptance — https://selling-guide.fanniemae.com/sel/b4-1.4-10/value-acceptance
Why This Is the Correct Answer
B. An appraisal is not required under the exercised standard offer. The scenario establishes both an eligible offer and its proper exercise. This is not a substitution of an exterior-only appraisal for an interior appraisal. Scope and exceptions: An offer cannot override a legal appraisal requirement or known disqualifying information. This question does not address value acceptance plus property data or declare that all lender obligations disappear.
Why the Other Options Are Wrong
Option A: The value is accepted only after a 2nd appraisal confirms it
Requiring a confirming second appraisal contradicts the stated treatment.
Option C: The lender accepts liability for the submitted value if it is wrong
It does not accurately describe the appraisal requirement or the specific representation-and-warranty treatment.
Option D: A drive-by appraisal replaces the interior inspection requirement
A drive-by appraisal remains an appraisal, not this standard offer.
Exam Tip
An eligible, exercised appraisal alternative is not unconditional loan approval.
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