Collateral Underwriter "suggested Comparables"

[timd354]

Yeah, so kinda like what some of us have been saying for the last month or so; this isn't as big of a deal as some are making it; assuming that the lenders use it as it was intended.
And, it seems to me that is exactly what Fannie is tying to do; nip all the hysteria in the bud while setting the appropriate structure for CU's use.

I also note that the document gives a very good reasoning why the information is not being shared with appraisers prior to the appraisal submission.

There is going to be forumites who will continue to say that CU will still be used to harass, cajole, intimidate, pressure, etc., etc., appraisers into doing something that appraiser's shouldn't do. There is a risk of that with almost anything, and it always seems like the same alarm bell is sounded no matter what changes come down the pike.

I'm giving this program 6-months before I make any conclusions. And 6-months might not be long enough. We'll see.

Stop making so much sense, don't you know that appraisers are doomed and CU is going to accelerate the impending doom? lol

 

[djd09]

also one must bring a lighting system (professional photographer).

 

[djd09]

don't you know the hvcc was created to help appraisers

 

[residentialguy]

Additionally, the CU Risk score appears to be misunderstood by many. It is not an appraisal quality score. It is a score that is utilized to identify appraisals and properties with a higher risk for collateral related issues, including potential valuation and property eligibility issues. Just because the CU score is a high risk score of 4 or 5, that does not mean that the appraisal is deficient and just because the CU score is low risk (1 or 2) that does not mean the appraisal is acceptable. The CU score is not meant to be used to decide which appraisals are acceptable and which are not. Rather , it is supposed to be utilized by lenders to identify which appraisals require additional due diligence because they represent a higher risk of appraisal/collateral issues. Fannie Mae has communicated this over and over to people in the mortgage and appraisal industries, but a a significant number of people in mortgage and appraisal industries are are pretty obtuse and/or are simply too lazy to have taken the time to educate themselves on CU despite an easily accessible Fannie Mae CU web page which has a ton of information on CU, including FAQ's, and E-learning courses.

IMPORTANT QUESTION, TIM
So, the appraisers that do more complex work where the CU always sends a high risk score replete with a dozen crappy comps... the lender reviews the report and finds that they are the best comps. Does that expunge the 5 score risk from the appraiser's history...or is he/she forever marked as a high risk appraiser (which will cause him/her to lose their clients)????

 

[timd354]

IMPORTANT QUESTION, TIM
So, the appraisers that do more complex work where the CU always sends a high risk score replete with a dozen crappy comps... the lender reviews the report and finds that they are the best comps. Does that expunge the 5 score risk from the appraiser's history...or is he/she forever marked as a high risk appraiser (which will cause him/her to lose their clients)????

If the appraiser does a good job and provides the best comps which the lender is able to verify, then why would the appraiser be marked as a high risk appraiser? The CU risk score is not an appraiser risk score and is not necessarily reflective of an individual appraiser's work which Fannie MAe makes clear with the following statement found at the bottom of p. 8 of Lender Letter LL-2015-02, published on 2/4/14:

Although information from CU is one tool that Fannie Mae uses in the AQM process, there is no direct connection between the CU risk score and AQM. High CU risk scores do not automatically trigger AQM reviews, and lenders using CU should not consider its feedback as necessarily reflective of an individual appraiser’s work (emphasis added)

 

[Meandering]

It must be really depressing to be so jaded one constantly thinks that everything is just some big scam put into place to screw over appraisers and that appraisers are doomed with little hope of escaping their impending doom.

What hasn't been in the past 5+ years?

Name one.

 

[timd354]

don't you know the hvcc was created to help appraisers

The HVCC was created to eliminate the obvious inherent conflict that was involved with loans officers and brokers selecting the appraiser, which is a good thing. No reasonable aargument can be made that loan officers and mortgage brokers should have any input or influence on appraiser selection.

It also simply corrected what was and has been an illegal practice since 1992 - Ever since the publication of the original Interagency Appraisal and Evaluation Guidelines in 1992, loan officers and loan brokers were barred from the appraiser selection process but this regulation was ignored by almost everyone, including lenders, the GSEs, and the regulators. Thus, the HVCC really amounted to nothing more than the beginning of the enforcement of long existing regulations.

 

[Meandering]

Denis,

Do you find ANYWHERE, that says if the lender is passing on all 20 comps to the appraiser, or if clients are still mandating that adjustments be within the old guidelines that appraisers can report this to Fannie?

Or is it just another one of those things that only has ramifications for appraisers, and portals to report appraiser non-compliance with no way for the appraisers to show what's going on?

The thread that Danny Wiley started has some posts that clients are already notifying appraisers they don't care what's in the letter and that line/net/gross adjustment comments will still be required.

Fannie says the underwriter will verify the additional comps, but does not detail how the underwriter will verify the additional comps. Can we see the reason so much of the appraisal function is outsourced to AMCs is that the lenders don't want to verify any comps? There wasn't any provision with Fannie's letter for the Lenders outsourcing of comp verification to AMCs, which are already out on the web saying, nope, we're not appraisers.

It's going to be a bigger mess than HVCC from the perspective of most appraisers.

.

 

[djd09]

and i know that my representative voted for the hvcc. not. that's is the democracy we live in today.

"The nine most terrifying words in the English language are: I'm from the government and I'm here to help."

 

[djd09]

the hvcc was created to enforce a current law. a law/rule/reg to enforce a law. one wonders why there is suspicions.