Collateral Underwriter (CU)

[Dublin ohio]

FNMA is keeping score.

AMC scoring systems all suck.

One complex assignment that CU barfed all over prompted a reallllly long and beneficial discussion with the chief appraiser for the AMC for a super major lender. I think he had far more skepticism when I was done with him about CU than when we started the conversation. Basically, how can CU properly model the data in the absence of data? And then spit out reams of "differs from models blah blah" in the absence of data? Anyhow, one day we might get a better peak under the hood.

Sounds like the chief appraiser had about the same understanding of CU as you appear to have. Lack of data. CU has been taking data from every appraisal submitted since it's conception. As well as other public sources. The comp you use today could have very well been used by numerous other appraisers. CU has the information from those other appraisals. The comp you use today was more than likely the subject on another appraisal submitted. Now do not get me wrong. I see a lot of problems with CU. But lack of data is not one of them.

 

[djd09]

One complex assignment that CU barfed all over

Complex may be one of CU downfalls.

4.9 is the second worst score you could possibly achieve. based on that you have lots of room for improvement.

Come on TRES. You know just because one gets a bad rating does not mean it is a bad report and visa versa. Don't blame me for the rating just because CU cannot read property remarks on the MLS or cannot verbally verify comps. They funded the deal so the appraisal couldn't be all bad.

 

[BarrySW1963]

Sounds like the chief appraiser had about the same understanding of CU as you appear to have. Lack of data. CU has been taking data from every appraisal submitted since it's conception. As well as other public sources. The comp you use today could have very well been used by numerous other appraisers. CU has the information from those other appraisals. The comp you use today was more than likely the subject on another appraisal submitted. Now do not get me wrong. I see a lot of problems with CU. But lack of data is not one of them.

There is tons of data in areas with high transaction volumes, but for complex properties in areas with low transaction volume, the data is certainly limited. Perhaps if folks are applying for multiple refis spread out over a year or so, you might get overlapping sets of properties used in varying positions to each other. If CU doesn't differentiate the quality of the adjustments for 2055s vs. 1004, that would contribute to problems in the data. Also, multiple appraisers may allocate adjustments differently, even when adjusting about the same combined for net/gross. Unless they had hard-core PhD quants that were also 20+ year seasoned appraisers representing geographic competence in every zip code, I highly doubt the algorithms are anywhere near tight enough to be used to gauge risk or appraiser performance. I think over time it will seriously ding the appraisers that take rural or complex assignments in particular.

 

[gregb]

Are there reports that Fannie has placed appraisers on a do-not-use list based on CU scores?

 

[BarrySW1963]

Are there reports that Fannie has placed appraisers on a do-not-use list based on CU scores?

That is one of the things the system was designed to be used for. But, does anyone have actual hard data on how many appraisers have hit up on the naughty lists?

 

[gregb]

Fannie description of interaction with an appraiser spotted with egregious appraisal errors-

https://www.fanniemae.com/content/FAQ/appraiser-quality-monitoring-faqs.pdf

 

[timd354]

That is one of the things the system was designed to be used for. But, does anyone have actual hard data on how many appraisers have hit up on the naughty lists?

They don't release that information, but lenders who have access to the list have told me that there are very few appraisers on the list (less than 20 so far)

 

[djd09]

I think over time it will seriously ding the appraisers that take rural or complex assignments in particular.

Complex is certainly a concept that will impede the growth of the machine.

From what i gathered from this brief encounter with the mighty Oz is it likes the most recent sales and the closest. This seems to be a very narrow view of a market when estimating more unique properties that has limited comparables based on the sales within one year.

 

[BarrySW1963]

They don't release that information, but lenders who have access to the list have told me that there are very few appraisers on the list (less than 20 so far)

That is good to hear.

 

[djd09]

Wonder if CU is spitting out a value yet?