Collateral Underwriter (CU)

[TRESinc]

How are appraisers on fannies blacklist if it is only a risk review?

bad appraisals. UCDP has been reviewing reports for longer than CU (in it's current form) has been.

 

[Meandering]

Because lenders have found fraudulent/really bad appraisals that Fannie has not or perhaps some of these appraisers are on Freddie's list....I still see appraisal reports that come across my desk in which the appraiser failed to mention external obsolescence or outright lied about the condition of the comps (don't some of these idiots realize that lenders use Google Earth to view the asubject property and that many times the comp listing (including interior photos) often can be found online...when a lender finds a dishonest appraiser they should not have to wait until Fannie adds the appraiser to their list...by that time it may be too late and they may have several repurchases as the GSE'S hold the lender responsible for the appraisal.

How long is Freddie's :List??

And you do know that Google Earth photos are not very current, right?

 

[djd09]

bad appraisals. UCDP has been reviewing reports for longer than CU (in it's current form) has been.

Where you located? Do you work for fannie?

 

[Terrel L. Shields]

I have no doubt that there are some lenders that still allow loan production people to influence the appraisal process

Only the appraiser can create a fraudulent appraisal, not the lender. So if true that lenders still influence appraisers, is a system where the appraiser is chosen by the people who knows them best and likely matches the appraiser to the assignment really worse than the blind bid system that mismatches the appraiser and thus the incompetent do the appraisal? Simply put, isn't it a choice between the random incompetent vs. the potentially influenced?

You will never convince me that bid systems match the assignment to the appropriate appraiser. The people outside the lender desk understand neither the property being valued nor the qualifications of the appraiser. So the blind choses the inappropriate appraiser and thus the appraisal is no more credible that produced by the compromised appraiser.

 

[djd09]

FIRREA Title XI:

“The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) was created on August 9, 1989, pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Title XI). In response to the “Savings and Loan Crisis,” Congress adopted Title XI to address the problem of unregulated persons performing incompetent and/or fraudulent appraisals for federally regulated financial institutions. Title XI’s purpose is to “provide that Federal financial and public policy interests in real estate transactions will be protected by requiring that real estate appraisals utilized in connection with federally related transactions are performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated and whose professional conduct will be subject to effective supervision.”

I don’t see where FIRREA excludes automated appraisal reviews performed by faulty algorithms using AVMs and inapplicable databases. An appraisal review IS an appraisal.

A system that ‘rates’ the adjustment portion of an appraisal is an appraisal review system regardless of how it is named. Just as an AVM prepared by an appraiser is an “appraisal.” A system that is inherently flawed that performs automated review appraisals is one that is not ‘competent’ to the task. It is “incompetent”. Further to knowingly use such a system; and to make false claims about its reliability or applicability is fraud or at least gross negligence.

Appraisers have been told repeatedly that the Collateral Underwriter is NOT an appraisal review, and that it is NOT an automated appraisal review based on AVMs! Reading the patent abstract, THAT claim is completely false.

“ABSTRACT –A system and method for appraisal adjustments scoring rates the quality of adjustments made by appraisers in their appraisals of real property. This is done by accessing a model adjustment database that is based on an automated valuation model and a peer adjustment database that is based on an aggregate of appraiser peers in the same geographic location as the subject property. A comparison is conducted for adjustments made by the appraiser to both model adjustments and peer adjustments to determine discrepancies. When a discrepancy is larger than a threshold, a message or warning may be generated. A sales pool composition database is also accessed to determine a valuation impact of the flagged adjustments given the particular set of comparable sales selected by the appraiser. After data evaluation, a rating score is calculated for the property appraisal based on the number and severity of messages and the valuation impact.”

http://appraisersblogs.com/collateral-underwriter-under-hood

At least i am not alone thinking CU should be subject to standard 3.

 

[TRESinc]

Where you located? Do you work for fannie?

i an in ohio, and no i do not. i do however keep up with our industry and changes that affect it. you may want to do the same.

 

[djd09]

Duh. I hope you don't write vague appraisals like you give vague answers. fannie is looking for new cheerleaders. apply now.

 

[TRESinc]

vague? looks like direct answers to me. i hope you analyze your market better than you comprehend posts on here.

 

[djd09]

Ohio is a big state.

 

[djd09]

review process
appraisal review
CU is effectively predictive of appraisal defects
any of the 20 comparables that are provided by CU for most appraisals
risk analysis performed by CU
carefully review the appraisal report
after completing a thorough review
CU generates up to 20 alternative comparables
reviewing an appraisal report
comparables are analyzed by CU and ranked against a pool of available sales based on physical characteristics, location, and sale date.
To help lenders more effectively and efficiently identify issues with appraisals
CU provides a numerical risk score from 1.0 to 5.
unscored appraisals
CU analyzes appraisals
are not analyzed:
Appraiser-provided comparables are ranked against a pool of alternative sales identified by the model based on a combination of physical features, location, and date of sale.
Location, date of sale, and physical features such as square footage, lot size, bathrooms, quality, view, etc. are also considered
CU compares the appraiser-provided comps against a pool of observed sales transactions in the subject market and not against arbitrary, “rule of thumb” guidelines.
comprehensive analysis of data integrity, comparable selection, adjustments, and reconciliation.
they simply highlight aspects of the appraisal that may require further attention.
CU analyzes the revised appraisal
Lenders that deliver loans to Fannie Mae are responsible for reviewing appraisals
No, appraisers do not have access to CU. CU was developed as an appraisal review tool for internal analysis
CU will review an appraisal only after it is submitted to UCDP which, then triggers the model that includes appraisal data to perform an analysis.
Will the use of CU as an appraisal review tool by Fannie Mae lenders
CU’s analysis
https://www.fanniemae.com/content/FAQ/collateral-underwriter-faqs.pdf

But it is not a review