What is required if an appraisal waiver is issued?

When an appraisal waiver is issued, it is essential to inform the borrower that an appraisal will not take place unless specifically requested. This communication is crucial to ensure that the borrower understands their options and the implications of the waiver. The appraisal waiver indicates that the lender has determined the value of the property can be sufficiently assessed without a formal appraisal based on various factors such as the borrower's creditworthiness, the property type, and the loan-to-value ratio.

While it might seem that no further action is needed with an appraisal waiver, transparency with the borrower is vital. They should be aware of the waiver and its limitations, such as the possibility of requesting an appraisal if they feel uncertain about the property's value or if it might affect their loan terms.

The other choices do not appropriately depict the requirements surrounding an appraisal waiver. An appraisal not being necessary at all doesn't communicate the need for borrower awareness. An expedited loan application process is not a guaranteed outcome of the waiver, as this can depend on several factors. Likewise, while it might seem logical for the borrower to sign a waiver form, this is not a standard requirement; the waiver simply indicates that the appraisal has been waived by the lender rather than necessitating a formal rejection.