Appraiser Expertise Question

[J Grant]

The OP post is intriguing, as the factors that drive up a CU score, from my understanding, may be more about non conforming properties that need large adjustments or distance comps., rather than a deficiency with the appraisal itself. Some properties can be appraised in a neat tidy way with small adjustments and close distance, recent comps, other appraisals are "ugly", due to needing big adjustments, far away comps, dated sales. Perhaps no matter how good an appraisal is, that kind of property will get a higher CU score. Still, adjustments should have some proportional reasonable correlation between price range, quality, and cost. I have no idea how the Fannie models come up with "their " adjustments, or which would be more correct, the Fannie model or the appraiser.? Perhaps the answer varies each time out.

A general problem I see is despite the fact that more data and technology is available, the basic methodology appraisers use has changed little over the years. Which creates a chasm, a dichotomy between the expectation an appraisal result can neatly match results of a "review" by a computer model, an AVM', or CU..

Appraisals were designed to be read by people, not scanned by machines. Fannie's CU seems to try to bridge the gap yet can not fully do so. It's an unrealistic expectation that appraisal methodology, designed to be reviewed by people educated about appraisals, not "data systems", won't somehow fail in that regard. Traditionally, appraisers (or highly trained and experienced UW, used to review appraisals,.

 

[djd09]

It is funny how an underwriter with access to the borg is asking how the borg scores. Maybe you should direct your questions to the creator since the commoners are not allowed to look directly at it in fear of being tainted.

 

[fractal7221]

Once upon a time there was a Skippy in a nice, under served suburban to rural market. There were so few appraisers out in this territory, that he was able to train a whole new generation of Skippies. As a parting gift before his license was revoked, he was able to hand down to his disciples the holy grail adjustment list: garages $5,000; bathrooms $2,000; site size at $2,000/ac; and most important, $1,000 per fireplace. The Skippies went forth and filled FNMA's databases with useless garbage data.

Then one day, a new appraiser that actually used market data enters the scene and starts to complete appraisals. However, his data does not match the countless entries made by two generations of Skippy and friends all using the same list. The appraiser actually extracting data from the market gets flagged as out of the expectations from the CU software that was filled with market data from Skippy's adjustment list.

 

[ucbruin]

Once upon a time there was a Skippy in a nice, under served suburban to rural market. There were so few appraisers out in this territory, that he was able to train a whole new generation of Skippies. As a parting gift before his license was revoked, he was able to hand down to his disciples the holy grail adjustment list: garages $5,000; bathrooms $2,000; site size at $2,000/ac; and most important, $1,000 per fireplace. The Skippies went forth and filled FNMA's databases with useless garbage data.

Then one day, a new appraiser that actually used market data enters the scene and starts to complete appraisals. However, his data does not match the countless entries made by two generations of Skippy and friends all using the same list. The appraiser actually extracting data from the market gets flagged as out of the expectations from the CU software that was filled with market data from Skippy's adjustment list.

I started in March, 1987....
Your list, you obviously had the list at one time, was around then....
So the list had to have originated prior to 1987.....
And shared nationwide.....
To all the lenders, underwriters, reviewers, appraisers.....

 

[bnmappraisal]

The only outlier you are is as one of the more thoughtful, educated, and careful posters on the forum. And by educated, I mean in the traditional classic education of the authoritative texts and keeping up with the peer reviewed articles of this profession.

Denis, I think Terrel sums up your "outlier" status pretty well. Here's to you and your "outlier" status Salut'

 

[glenn walker]

It is funny how an underwriter with access to the borg is asking how the borg scores. Maybe you should direct your questions to the creator since the commoners are not allowed to look directly at it in fear of being tainted.

Fannie Mae ( creator ) does not share information about how CU operates to anyone. probably afraid the bankers and appraisers will try to game the system

 

[djd09]

If it prevents banksters and appraisers to game the system , then why do they need us?

 

[jay trotta]

If it prevents banksters and appraisers to game the system , then why do they need us?

Scapegoat
the perception of Public trust

 

[djd09]

That is right without the 2.5 score or less then there needs to be blame. Got E&O insurance?

I bet Day 1 scores are always below the threshold.

 

[hastalavista]

thank you

If you want to thank us for assisting you, you could be more forthcoming in the answering some of the questions we are asking you about the UW process, etc., etc.. You are asking for assistance and information-sharing and many here are happy to provide it. So far, it has been somewhat of a one-way street.

Or, if you know of an Underwriters Forum, post that address.