Fannie Mae’s Value Acceptance + Property Data program, set to launch on April 15, 2023, is poised to revolutionize the mortgage industry, and with it, the appraisal profession. The program aims to provide a more data-driven approach to property valuation by replacing traditional appraisals with assessments conducted by non-licensed “Property Data Collectors.” While this move has raised concerns about assessment quality and consistency, it has also opened up a new career path for those interested in real estate investing and property analysis.
The Property Data Collectors visit properties to perform data collection using one of Fannie Mae’s six approved apps that meet their Property Data Standard. These individuals are not required to have a license, but Fannie Mae requires lenders to vet them by verifying their background, providing professional training, and ensuring they possess the essential knowledge for competent data collection. Although the absence of regulation raises concerns about data collection quality, consistency, conflicts of interest, and biased assessments, Fannie Mae has put in place measures to ensure fair lending laws are followed, and Property Data Collectors have received Fair Housing training.
For those looking for a new career in real estate, becoming a Property Data Collector could be an excellent opportunity. With the use of technology and Fannie Mae’s six approved apps, these individuals can help virtual wholesalers and real estate investors analyze potential investments remotely, giving them the tools they need to make informed decisions. As the program expands, the demand for Property Data Collectors is expected to increase, providing new job opportunities in the real estate industry.
While some argue that AVMs and non-licensed Property Data Collectors cannot replace licensed appraisers’ expertise, it is essential to note that Fannie Mae’s program is not meant to eliminate appraisers altogether. The program is aimed at streamlining the mortgage process, making it faster, easier, and more cost-effective for lenders and borrowers. It is also aimed at improving data accuracy, transparency, and consistency, giving lenders and borrowers more confidence in the mortgage system.
As with any new program, there are potential risks and implications to consider. As more loans bypass traditional appraisals, property value inaccuracies may increase, leading to higher loan-to-value (LTV) ratios, increased default risk, and possibly another housing market crash like in 2008. The absence of a strong foundation in property values could erode trust in the mortgage system, impacting the entire housing market. It is crucial for Fannie Mae and lenders to ensure that Property Data Collectors comply with fair lending laws and deliver unbiased, accurate results to mitigate these risks.
In conclusion, Fannie Mae’s Value Acceptance + Property Data program has the potential to transform the mortgage industry and open up new career opportunities for those interested in real estate investing. While there are concerns about assessment quality and consistency, Fannie Mae has put in place measures to ensure fair lending laws are followed, and Property Data Collectors have received Fair Housing training. As the program expands, it is essential to monitor its impact on the housing market and appraisal profession to ensure the mortgage system’s stability and accuracy.