Property Inspection Waiver (PIW)

Fannie Mae’s Property Inspection Waiver (PIW) is a fieldwork recommendation that results in an offer to waive both the property inspection and the appraisal for certain lower risk transactions. The PIW is available through Desktop Underwriter® (DU®). DU uses Fannie Mae’s proprietary automated valuation model (AVM) and credit risk management techniques to determine the minimum level of property valuation and inspection fieldwork required for loans delivered to Fannie Mae.

The fee for exercising a PIW is $75.00 and will be reflected on the HUD-1 as a Property Inspection Waiver Fee. This $75.00 fee will be included in Section 32/APR, and Prepaid Finance Charge high-cost tests.

ELIGIBLE TRANSACTIONS

Transaction with the following characteristics are currently eligible for consideration for PIW:

•	One-Unit Properties

•	Purchase, limited cash-out refinance, and cash-out refinance transactions

•	Primary residences, second homes, and investment properties

•	When determining PIW eligibility, DU will apply the maximum allowable loan-to-value (LTV) ratios consistent with limits published in the Selling Guide, though a PIW will not be offered on loan casefiles with LTVs greater than 80% in DU

The following transactions are not eligible for PIW:

•	Two- to Four-unit properties

•	Cooperative units and manufactured homes (manufactured homes are ineligible loan approval through Gateway Mortgage Group LLC)

•	Construction and construction-to-permanent loans; and

•	Loan casefiles receiving an Expanded Approval (EA) recommendation (EA loans are ineligible for loan approval through Gateway Mortgage Group LLC)