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Press Release

Fannie Mae’s ‘Day 1 Certainty’ Initiative Gives Lenders Greater Certainty and Efficiency on Appraisals

December 12, 2016

Pete Bakel


WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it has implemented technology updates to give lenders freedom from representations and warranties on property value for many loans.

With a qualifying risk score from Collateral Underwriter®, Fannie Mae’s appraisal risk assessment application, and a recommendation of Approve/Eligible from Desktop Underwriter® (DU®), the company’s industry leading mortgage underwriting system, appraised value can be accepted up front to give lenders freedom from representations and warranties.

Also leveraging the power of Collateral Underwriter, DU will now issue property inspection waivers (PIWs) – an offer to waive the appraisal if other requirements are met. With an exercised PIW offer, lenders receive representation and warranty relief on property value, condition, and marketability.

Freedom from representations and warranties for appraised property value is part of Fannie Mae’s groundbreaking Day 1 Certainty initiative, which enables more efficient risk management and brings greater speed and simplicity to lenders and borrowers. Greater certainty and efficiency in the appraisal process will mean potential time and cost savings in loan originations.

“With the power of Collateral Underwriter, relief from representations and warranties for appraised property value on many loans now makes the process more efficient for everyone by reducing the need for follow-up with appraisers,” said Carlos Perez, senior vice president and chief credit officer for single-family at Fannie Mae. “And with the enhanced property inspection waiver, many refinance transactions will not require a new appraisal, potentially shortening the origination process and giving borrowers a significant cost savings.”

Collateral Underwriter is Fannie Mae's industry-leading collateral risk assessment tool, provided free of charge to lenders. It leverages powerful analytics and a database of more than 20 million appraisals to help lenders proactively manage appraisal quality and originate mortgages with increased certainty, efficiency, and lower costs.

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Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit and follow us on