Collateral Underwriter (CU)

[Howard Klahr]

actually successful in accomplishing the purpose for which it was designed....to get appraisers to analyze and provide at least some data in support of their market conditions conclusions as opposed to doing no more than simply checking a box as many appraisers had previously done.

All I can say is garbage in equals garbage out, just like unqualified data in the CU.

the people at Fannie who built and run CU had nothing to do with the design of the 1004MC.

That has not been my experience.

 

[timd354]

It is the New & Improved Fannie. Even though the 1004mc was designed during some "odd" time period, they do not care to update it. think about it

Updating any appraisal related form is a major undertaking and takes lots of time and effort as many other entities such as Freddie, FHA, and the VA have to be brought on board and any new form would also require a change in the UAD spec. I doubt that updating the 1004MC is a very high priority since the information currently collected on the 1004MC will be undoubtedly built into the new forms whenever they are updated in the future.

 

[Howard Klahr]

I doubt that updating the 1004MC is a very high priority

Agreed

 

[Charlotte Dixon]

Wait, wait, let's think about this.



JT's rhetoric has been that Fannie has been whining about appraisers making $25 per sf adjustments.

Fannie did not use $10 as an example of GLA adjustments, but rather used, $100???

So, if the majority of comps are larger, requiring downward adjustments, appraisers are over valuing property by $75 a square foot, in Fannie speak?

They aren't whining about under-valuing properties for repurchase demands.

Is this now incentive to under value properties?

There could be major repercussions when the market tanks again and repurchases start resulting in lawsuits against appraisers, who are not privy to Fannie algorithms, which by definition are not appraisals.

Sounds like there may be a need of new boilerplate disclaimers in residential appraisals.

.

I'm guessing this is a stupid question, but how am I to know what my "peers" adjust psf ? This sounds like when I started appraising hundreds of years ago. I was given a "list" i.e. garage =$4,000, deck =$1,000, adjust $20 psf. Seems like we're reverting back to olden times to me.

 

[residentialguy]

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

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.

Tres is point on. This has nothing to do with us. The lender should not be sending over CU info to us.
FNMA ML 2015-02 clearly states: "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 you guys would start requiring to see the lender's analyses of why the comps are better than our and start charging for sale reviews, this nonsense would end. It ended for me when I started doing this.