source:
  type: guide
  id: fnma-sel-a2-2-06
  authority: Fannie Mae Selling Guide A2-2-06 — Representations and Warranties on
    Property Value
  description: Fannie Mae Selling Guide A2-2-06 — Representations and Warranties on
    Property Value.
  coverage_tier: operative
obligations:
- id: fnma-sel-a2-2-06-full
  canonical_id: fnma-sel-a2-2-06-full
  section: Fannie Mae Selling Guide A2-2-06 — Representations and Warranties on Property
    Value
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A2-2-06 — Representations and Warranties on
      Property Value
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'A2-2-06, Representations and Warranties on Property Value (09/03/2025)
      Introduction This topic contains information on the following: Representations
      and Warranties Related to Collateral Underwriter (CU) Representations and Warranties
      Related to Value Acceptance Representations and Warranties Related to Collateral
      Underwriter (CU) In addition to the limited waiver of underwriting representations
      and warranties available for certain DU loans, loans may also beneﬁt from enforcement
      relief of certain representations and warranties related to the appraisal and
      value of the subject property (without regard to underwriting method). To be
      eligible for relief: the loan must be secured by a one-unit detached, attached,
      or condo property (manufactured homes are not eligible); and the appraisal must
      receive a CU risk score of 2.5 or below. Note: See B4-1.1-04, Unacceptable Appraisal
      Practices for examples of unacceptable practices. When this criteria is met,
      the lender is not responsible for the following requirements described in this
      Guide: underwriting the appraisal report to determine whether the subject property
      presents adequate collateral for the mortgage; ensuring the appraisal accurately
      reﬂects the market value of the property; ensuring the appraiser used sound
      reasoning and provided evidence to support the methodology chosen to develop
      the opinion of value; and analyzing the comparable sales used in the appraisal
      report, including the description, selection, adjustments, and reconciliation
      of the comparables. The lender remains responsible for the description of the
      property, adherence to fair lending, local, state, and federal laws and the
      accuracy and completeness of all data on the appraisal that pertains to the
      property and project (if applicable). This includes the property’s condition
      and quality ratings. The lender is also responsible for ensuring the property
      meets the property eligibility requirements in this Guide. Lastly, the lender
      remains responsible for any life-of-loan representations and warranties that
      may apply to the property or the appraisal. Representations and Warranties Related
      to Value Acceptance In addition to the limited waiver of underwriting representations
      and warranties available for certain DU loans, when a loan caseﬁle is eligible
      for value acceptance, value acceptance + property data, or rural high-needs
      Published May 6, 2026 29 value acceptance, and is exercised by the lender, Fannie
      Mae accepts the value estimate submitted by the lender as the value for the
      subject property. The estimated property value the lender enters in DU must
      be: based on the lender’s or borrower''s estimate of value for a reﬁnance transaction,
      or the same amount as the Sales Contract Price for a purchase transaction. For
      all value acceptance oﬀers that are exercised, the lender remains responsible
      for the accuracy and completeness of all data that pertains to the property
      and project (if applicable) that is submitted to DU (other than the property
      value) and must warrant that the property is adequately insured. The following
      table describes the representations and warranties the lender must make ("Yes")
      if they exercise a value acceptance, value acceptance + property data, or rural-high
      needs value acceptance oﬀer. The table also identiﬁes the representations and
      warranties the lender is not responsible for ("No"). Representations and Warranties
      Related to... Value and marketability Physical property characteristics Property
      eligibility including condition Condition with a recent disaster Value acceptance
      No No No Yes Value acceptance + property data No Yes Yes* Yes Rural high-needs
      value acceptance No Yes Yes* Yes *Includes warranty that the property is safe,
      sound, and structurally secure. Fannie Mae does not warrant that the estimated
      value provided by the lender is the actual value of the subject property. The
      lender may not make any statements to any third party (including the borrower)
      that Fannie Mae performed any kind of appraisal or valuation of the property.
      Note: See B2-3-01, General Property Eligibility for property eligibility requirements
      and B2-3-05, Properties Aﬀected by a Disaster for requirements on recent disaster.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcement Issue Date
      Announcement SEL-2025-07 September 03, 2025 Announcement SEL-2025-04 June 04,
      2025 Published May 6, 2026 30 Announcement Issue Date Announcement SEL-2024-06
      September 04, 2024 Announcement SEL-2023-02 March 01, 2023'
  judgment: false
