What is true about a lender-enabled appraisal waiver?

A lender-enabled appraisal waiver is a provision that allows lenders to forgo a formal appraisal in certain situations, streamlining the loan process. While appraisal waivers can be a convenient option, it's crucial to understand that they are not applicable to every transaction. This is particularly true for more complex or higher-risk loans, which often require a traditional appraisal to ensure an accurate assessment of property value.

In many cases, the criteria for qualifying for an appraisal waiver include specific loan types, borrower qualifications, and property conditions. Given these prerequisites, most transactions will indeed not qualify for an appraisal waiver, emphasizing the point that these waivers are relatively rare compared to the total volume of loans processed.

Understanding the nature of appraisal waivers helps in recognizing their selective application in lending practices—thus supporting the assertion that most transactions won't qualify for this option.