B4-1.4-11, Value Acceptance + Property Data (02/07/2024)

For certain loan casefiles, DU offers value acceptance + property data - an option that requires interior and exterior property data collection to verify property eligibility prior to the note date. An appraisal is not required.

Loan casefiles for certain one-unit properties will be considered for value acceptance + property data.

The following transactions are not eligible for value acceptance + property data:

• two- to four-unit properties;
• co-op units;
• manufactured homes;
• proposed construction;
• construction-to-permanent loans (single-close and two-close);
• investment properties when rental income is used to qualify the borrower;
• HomeStyle Renovation and HomeStyle Energy loans;
• Texas 50(a)(6) loans;
• leasehold properties;
• community land trusts or other properties with resale price restrictions, which include loan casefiles using the Affordable LTV feature;
• transactions where either the purchase price or estimated value provided to DU is $1,000,000 or more;
• transactions using gifts of equity;
• DU loan casefiles that receive an Ineligible recommendation; and 
• manually underwritten loans.

When a loan casefile is eligible for value acceptance + property data and exercised by the lender, Fannie Mae accepts the value estimate submitted by the lender as the value for the subject property. See  A2-2-06, Representations and Warranties on Property ValueA2-2-06, Representations and Warranties on Property Value for more information.

The property data collection consists of a visual observation of the interior and exterior areas of the subject property. It must be performed by a trained and vetted property data collector and must adhere to the Uniform Property Dataset (UPD). This dataset consists of all required, conditionally required, and optional data elements for property data collection of subject property data including photos and a floor plan conforming to the ANSI Standard. See Gross Living Area in  B4-1.3-05, Improvements Section of the Appraisal ReportB4-1.3-05, Improvements Section of the Appraisal Report for ANSI standards, the Property Data Collection User Guide and Uniform Property Dataset (UPD) Specification for more information.

After the property data collection is completed, it must be successfully submitted to Fannie Mae's Property Data API. See Fannie Mae's website for more information about the UPD and the Fannie Mae Property Data API and access. 

The property data collector is the individual who personally visits the subject property to perform the property data collection guided by an application on a hand-held device developed in compliance with the UPD. The property data collector must identify and communicate any safety, soundness, or structural integrity issues and significant items of incomplete construction or renovation. 

Lender Vetting of Property Data Collectors

The lender must verify and be able to demonstrate that the data collectors are

• selected in accordance with Fannie Mae requirements, including the Property Data Collector Independence Requirements,
• vetted through an annual background check,
• professionally trained, and
• they possess the essential knowledge to competently complete the property data collection.

The lender must ensure that the data collectors are trained to comply with their fair lending laws and deliver accurate results unaffected by personal biases. To avoid conflict of interest, the lender must ensure that the data collector has no interest in or ties to the underlying loan origination transaction, participants, or subject property.

The lender or lender's agent must review the data collector's credentials and qualifications on an annual basis to ensure ongoing compliance. Evidence of the reviews must be available to Fannie Mae upon request.

The lender must monitor and assess the work performed by the data collector through the lender's quality control program including prefunding and post-closing reviews. The lender must continually evaluate the quality of its property data collectors and property data collection (see  D1-3-04, Lender Post-Closing Quality Control Review of Appraisers, Appraisals, Property Data Collectors, and Property Data CollectionD1-3-04, Lender Post-Closing Quality Control Review of Appraisers, Appraisals, Property Data Collectors, and Property Data Collection).

A lender may only exercise value acceptance + property data when

• the final submission of the loan casefile to DU resulted in an eligibility message for value acceptance + property data,
• property data collection is submitted to the Property Data API prior to the note date,
• an appraisal is not obtained for the transaction, and
• the offer is not more than four months old on the date of the note and mortgage.

Lenders that elect to exercise value acceptance + property data must include Special Feature Code 774 at loan delivery. The property data collection is only valid for 12 months from date of collection and must be performed prior to the note date.

If the value acceptance + property data offer is lost due to changes in qualifying loan characteristics after the property data collection was obtained, in some cases it may be possible for the lender to provide the property data collection to an appraiser to perform a hybrid appraisal assignment. See  B4-1.2-03, Hybrid AppraisalsB4-1.2-03, Hybrid Appraisals  for specific requirements. Alternatively, the lender may obtain a desktop or traditional appraisal report as specified by DU.

The lender must represent and warrant that the property

• does not have safety, soundness, or structural integrity issues;
• does not have significant items of incomplete construction or renovation; and 
• meets Fannie Mae's property eligibility requirements (see  B2-3-01, General Property EligibilityB2-3-01, General Property Eligibility).

To make these representations and warranties in the absence of an appraisal, the lender must examine the descriptive information and photo exhibits from the property data collection to determine whether the property meets the above requirements.

When the property data collection evidences any items failing eligibility requirements, the lender may need to obtain a professionally prepared report from a qualified professional to confirm the eligibility of the property and if repairs are required (well, septic, foundation, roof, electrical, mold, etc.). If repairs or alterations are necessary to bring the property into compliance with Fannie Mae's eligibility requirements, the lender must provide satisfactory evidence and documentation showing the condition has been corrected or completed prior to sale of the loan to Fannie Mae.

See Form 1004D and Completion Alternatives in  B4-1.2-05, Requirements for Verifying Completion and Postponed ImprovementsB4-1.2-05, Requirements for Verifying Completion and Postponed Improvements  for the applicable requirements to verify completion of repairs, alterations, or inspections.