Definitely send the person out to inspect a property who has absolutely nothing to lose. If they don’t have an appraisal license, who are they going to report them to? If they have a real estate license, great! But who are they going to report them to for errors or omissions in an inspection. This literally opens the door for so much fraud its not even funny. I can see it now, the person sen to inspect the property will be paid $1,000 cash to report back with whatever the borrower wants them to report back with. People who commit fraud ALWAYS learn how to work the system and will figure out pretty quickly how to avoid any further inspections or a full appraisal. This is probably the dumbest idea Fannie has come up with to date.
Source: Working RE Magazine