During peak home buying season, home appraisers are often in high demand, which can, in turn, slow down the closing process and potentially increase loan costs due to longer initial interest-rate locks. Fairway Independent Mortgage Corporation has begun using Fannie Mae’s property inspection waivers (PIW) to combat this issue.
PIWs are part of Fannie Mae’s Day 1 Certainty™ initiative, which aims to streamline the mortgage process by waiving the appraisal for certain refinances. Using underwriting programs, Fannie Mae is able to determine the minimum level of property valuation that is required for a home loan.
For a transaction to be eligible for a PIW, there must be a prior appraisal associated with one of the borrowers in the underwriting software. If the loan is eligible and the lender uses a PIW, Fannie Mae accepts it for the value of the property.
As Fairway utilizes PIW waivers for refinance transactions, it will allow mortgage planners to more easily and efficiently schedule appraisals for home purchase transactions. Scott Fletcher, president of Risk and Compliance at Fairway, commented:
“With PIWs, we were able to process the purchase appraisals faster because there were fewer refinance appraisals being requested.”
To learn more about how Fairway is using PIWs, click here.
If you are interested in purchasing a new home or refinancing your current home, I would love to talk to you about your home buying options. Call me today to set up an appointment.