Collateral Underwriter (CU)

[Ray Christ]

Does the order of the "CU" comps suggest the are in best to last order?

 

[RSW]

Depends on how you sort them and list them in the appraisal report. There is no CU requirement to place the best first.

 

[TRESinc]

how are you getting them, from the lender? if so the lender is supposed to review the CU list and only send over truly comparable properties. if they are going the copy/paste route they are violating the terms of CU from fannie.

 

[Ray Christ]

The Lender provided list from "CU" and there were 9 on the list and they stated the ones we used were #3,#7,#8. The conferred that meant number 1 was the best and number 9 was the least.

 

[hastalavista]

Yes.
As organized, the CU comps with the first being the most relevant, and so-on and so-on.

That's why I advice, if given a list of CU comps and asked to respond, and if I were so inclined to respond, I'd pick the first few, respond to those, and state the remainder are less relevant than the first three, and if the first three don't work, the rest won't either.

Good luck!

 

[TRESinc]

send them this, taken directly from a fannie mae lender letter:

Lender Letter LL-2015-02

The risk analysis performed by CU is for exclusive use by the lender in their analysis of the appraisal report. After completing a thorough review, a lender should be able to have constructive dialogue with the appraiser to resolve specific appraisal questions or concerns. Although the lender may use output from Collateral Underwriter to inform its dialogue with appraisal management companies and appraisers regarding appraisals they supplied, the CU license terms prohibit providing these entities with copies or displays of Fannie Mae reports that contain CU findings, including without limitation the CU Print Report, the UCDP Submission Summary Report, or any other CU report. The lender must not make demands or provide instructions to the appraiser based solely on automated feedback. Also the CU license terms prohibit using it “in a manner that interferes with the independent judgment of an appraiser.” Fannie Mae expects the lender to use human due diligence in combination with the CU feedback, and will actively follow up with lenders who are reported to be asking appraisers to change their reports based on CU feedback without any further due diligence.

Fannie Mae does not instruct or suggest to lenders that they ask the appraiser to address all or any of the 20 comparables that are provided by CU for most appraisals. It is also not Fannie Mae’s expectation that appraisals should contain only CU’s top-ranked comparable sales. In the majority of cases, there may be no material difference between comparable sales utilized by the appraiser and those identified by CU. Before asking the appraiser to consider any alternative sales, it is imperative that the lender analyze the relevance of the sale and determine if the use of such sale would result in any material change to the appraisal report. If the lender determines that there would be no material change, then they should not ask the appraiser to make revisions. Fannie Mae expects CU to enable lenders to accept appraisals “as is” with greater confidence.

 

[Elliott]

The form say, "Comparable Sale No. 1, Comparable Sale No. 2, ....." It doesn't say, "Best Comparable, Next Best Comparable, Third Best Comparable, Worst Comparable."

 

[RSW]

I think I misunderstood the OP's question.

 

[glenn walker]

Yes and no I have seen CU reports that placed their so called best first in line and others were they were all over the board. The real problem is CU best is often pulling sales that are not really comparable and many are very dated sales .

 

[Tom D]

The form say, "Comparable Sale No. 1, Comparable Sale No. 2, ....." It doesn't say, "Best Comparable, Next Best Comparable, Third Best Comparable, Worst Comparable."

i love your "doesn't say choices" would save some time as to which comps were given the greatest weight.
i would also suggest comp, better comp, more better comp. wasn't there once a form where you could just put a plus, or minus, on the grid. from minimalism to today's minutia overload.