More innovative, efficient ways to establish a property’s market value

Leading an ever-evolving market, Fannie Mae has an updated range of valuation options that balances traditional appraisals with innovative alternatives, making the process of establishing a property’s market value more efficient and accurate. These options match the risk of the collateral and the loan transaction.

Collateral valuation options  

The range of options are divided into two principle categories of valuations:

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Property data collection (PDC) is a standardized, tested method where vetted and trained collectors report fact-based property data. Value acceptance + property data and hybrid appraisal valuations leverage this method to streamline processes so lenders, appraisers, and agents can close more loans and serve more borrowers.

The modern valuation spectrum

Value acceptance

Value acceptance

(Value acceptance)

How it works
Uses standardized, secure data and a robust modeling framework or a lender’s estimate to confirm the property sale price is accurate to the value.

What it works for
Lower risk purchases and refinances when there’s a large amount of data available about the property and market.

Value acceptance+ property data

Value acceptance + property data*

(Value acceptance)

How it works
Property data is collected by a trained and vetted third party. Lender reviews data and confirms property eligibility.

What it works for
Subject properties that have some existing market data that needs further evaluation and confirmation from a site visit by a property data collector.

Hybrid appraisal

Hybrid appraisal*

(Value determination)

How it works
Property data is collected by a vetted third party and passed to an appraiser. The appraiser uses the PDC in lieu of a personal site visit to complete the appraisal.

What it works for
Loans that do not qualify for value acceptance or do not have reliable prior observations of the subject property.

Desktop appraisal

Desktop appraisal

(Value determination)

How it works  
An appraiser completes the appraisal without physically inspecting the property, using data from various sources like real estate agents, homeowners, MLS, and tax records. 

What it works for  
Purchase transactions. 

Traditional appraisal

Traditional appraisal

(Value determination)

How it works
An appraiser visits the property to collect the property data and then completes the appraisal.

What it works for
Complex property types or situations where data is sparse. This option is always available to lenders and borrowers.

Resource
Job aid

Value acceptance

(Value acceptance)

How it works
Uses standardized, secure data and a robust modeling framework or a lender’s estimate to confirm the property sale price is accurate to the value.

What it works for
Lower risk purchases and refinances when there’s a large amount of data available about the property and market.

Value acceptance + property data*

(Value acceptance)

How it works
Property data is collected by a trained and vetted third party. Lender reviews data and confirms property eligibility.

What it works for
Subject properties that have some existing market data that needs further evaluation and confirmation from a site visit by a property data collector.

Hybrid appraisal*

(Value determination)

How it works
Property data is collected by a vetted third party and passed to an appraiser. The appraiser uses the PDC in lieu of a personal site visit to complete the appraisal.

What it works for
Loans that do not qualify for value acceptance or do not have reliable prior observations of the subject property.

Desktop appraisal

(Value determination)

How it works  
An appraiser completes the appraisal without physically inspecting the property, using data from various sources like real estate agents, homeowners, MLS, and tax records. 

What it works for  
Purchase transactions. 

Traditional appraisal

(Value determination)

How it works
An appraiser visits the property to collect the property data and then completes the appraisal.

What it works for
Complex property types or situations where data is sparse. This option is always available to lenders and borrowers.

Resource
Job aid

*Powered by property data collection

Access the current fulfillment providers list.

 

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With property data collection, a vetted third party collects data for efficient, effective property valuations. Quality standards are a priority, which is why the PDC process has been rigorously reviewed and standardized before becoming available to lenders. By offering ways for lenders, real estate agents, and appraisers to leverage this data, Fannie Mae is working to advance and streamline the mortgage process for our partners and their customers.

Breaking down the basics

Lenders ensure that property data collectors are vetted through an annual background check, are professionally trained, and possess all essential knowledge.

Property data collectors use smartphones, tablets, or web-based interfaces to capture accurate information compliant with the Uniform Property Dataset (UPD) as they observe a property. These tools capture high-res photos and create a floor plan that’s compliant with the ANSI® (American National Standards Institute®). Upon completion, collectors sign certifications affirming that the data was objectively and accurately captured.

Once the PDC is collected and passes quality control checks, it is submitted to Fannie Mae’s Property Data API. Our Property Data API Review Tool is used to visualize and review property data attributes, photos, and floor plans. These technologies provide messaging regarding compliance, submission status, and flags on data points that could affect loan eligibility.

In recent years, industry partners — including lenders, appraisers, real estate agents, and other housing leaders — worked together to create a standardized process designed to produce factual, accurate, and consistent property data and exhibits. These efforts culminated in a Uniform Property Dataset.

Fiction vs. facts

Dive into property data collection 

Discover why lenders trust and use PDC.

More valuation resources