In a recent Stewart in the Studio episode, Matt Jenkins, Vice President, Valuation Services at Stewart Valuation Intelligence (SVI), unpacked how lenders can move from pilot to production with hybrid appraisals and property data inspection. Below are his five most actionable takeaways along with quick tips you can put in place today.
1. Let the GSE roadmap guide your timing
Fannie Mae and Freddie Mac now flag hybrid eligible loans inside their respective AUS platforms—Fannie’s DU (Desktop Underwriter) and Freddie’s LPA (Loan Product Advisor). Specifically, they issue findings like “Value Acceptance plus Property Data” (Fannie) and “ACE plus PDR” (Freddie), which indicate the loan is eligible for a hybrid appraisal using third party property data collection.
- Matt’s advice is simple: build your process around these signals. They’re your early indicators of when you can eliminate full appraisals, gain cycle time, and reduce repurchase risk by staying within the GSE framework.
- Put it into play:
- Map DU and LPA feedback codes (Value Acceptance plus Property Data, ACE plus PDR) to clear hybrid workflows inside your LOS
- Track the percentage of eligible loans by loan purpose (purchase, refi, cash out) so you can forecast staffing and optimize routing
- Build automation rules that trigger inspection orders or hybrid appraiser assignments based on GSE feedback with no manual handoffs required
2. Treat Property Data Inspection as the Engine, Not an Add-On
- Matt calls data inspection the “foundation block” of every hybrid. Quality photos, floor plans, and measurements are what give appraisers the confidence to deliver credible reports and what drive investor acceptance on the back end. If the data’s not right, the whole process breaks down.
- That’s why modern platforms need to do more than just collect, they should guide. SVI’s inspection app, for example, includes built-in photo quality detection that flagsissues before the inspector leaves the property, reducing rework and delays.
Put into play:
- Certify collectors on ANSI standards and geotagging.
- Use mobile apps that provide real-time photo quality feedback to inspectors at the point of capture.
- Automate alerts for missing rooms, poor image quality, or incomplete floorplan details—so corrections happen while the inspector is still on-site.
3. Use Today’s Volume Lull to Prepare for Tomorrow’s Surge
- Right now, refinance activity is low and purchase pipelines are manageable—making this the ideal time to modernize without disrupting operations. It won’t take much for volume to rise again, and when it does, you’ll want your hybrid process fully dialed in to keep things moving.
- Matt recommends using this window to test, refine, and embed hybrid workflows before the next wave hits.
4. Work with an AMC that Owns the Needed Tech to Remove Friction
“One of SVI’s strengths is low friction, and you can really be low friction when you own the process and the technology,” Matt said. “SVI built the VALIDITY Pro app that is used to collect data for the Property Data Inspection, the inspection is completed by one of SVI’s Broker/Agent partners, and all data lives on the same production platform as our appraisals. A single platform lets you route orders, track inspections and surface analytics without juggling portals.”
Try this
- Consolidate hybrid ordering and traditional 1004s inside one vendor hub
- Feed collector data straight to the appraiser so no manual re-entry slows things down
5. Build a Culture of Readines and Scale
- When volume returns, the organizations that thrive will be the ones that already have modernization built into their culture. That means embracing efficiency, encouraging process improvements, and making sure your teams are aligned and prepared—not scrambling to react.
- Matt emphasizes the value of transparency and momentum. The more you can show progress and reward performance now, the easier it will be to scale smoothly later.
Hybrid appraisals will only grow as the GSE agenda evolves. Follow Matt Jenkins’s blueprint to lock in faster turn times lower costs and a smoother borrower experience before the next market upswing demands it.
Listen to the e Stewart in the Studio episode with Matt Jenkins.
