Collateral Underwriter "suggested Comparables"

[djd09]

whom am i to question federal national mortgage association and tim. i am just a corn fed ohio hillbilly that couldn't add to 10 if i didn't have fingers. i am so sorry to question CU, federal national mortgage association, and tim. i shall repent and never whine again or question such high authorities. i am nothing and know my role to conform to the greatness. have mercy on me.

 

[timd354]

So CU and FNMA doesn't vet the "comps" prior to issuing CU warnings?

CU absolutely analyzes the potential "comps" prior to issuing CU warnings and it even numerically ranks the potential comps and the appraiser's comps in order of the model's preference. That being said, CU is an automated computer program that is not 100% accurate and the data that feeds CU, while being better than most property data sources since it is appraiser vetted and provided data is not perfect. CU is not meant to be the be all and end all regarding appraisal quality or be the sole determinant of whether the lender should accept the appraisal. It is a tool to assist lenders in the evaluation of the appraisal and collateral and when used correctly, is a very powerful tool to help identify increased collateral and appraisal related risks. Undoubtedly, some lenders will use the tool properly, and some lenders won't have a clue...but that is nothing new.

never said tim was wrong. i highly disagree with it being called a risk collateral score when the definition of a review is in part "the act or process of developing and communicating an opinion
about the quality of another appraiser’s work"
now if it is a standard 3 review is another question.

I am supposed to educate myself but am not allowed to see the CU system. they will tell me about it but i don't need to see. yea i have a car to sell you too but you are not allowed to start it. i was born on a boat but it wasn't the love boat. what a joke.

Whether you choose to educate yourself on something that is going to have a large effect on the your profession as a residential appraiser is up to you. You can act like a professional and educate yourself so you can intelligently address the issues that undoubtedly arise as a result of many lenders using the CU tool or you can keep whining about what you can't change (i.e., appraiser access to the tool) and not educate yourself and continue to wallow in your own ignorance.

you like the name calling but i will not drop to your level. questioning a non transparent system is considered "whining" i guess i am guilty.

Try some better reading comprehension. Nowhere in my post did I call you or anyone else a name

 

[KenAZ]

I don't know why GLA is different for FNMA. They seem to be obsessed with Price per sf no matter what the CU says. You can even read the FNMA example where they mention homes selling for $200 per sf but the appraiser only adjusted $15 per sf. Bob Murphy also does not get it. He was suggesting about $80-$100 per sf adjustments should be the norm.

The only reason to follow the 30% rule, is to avoid flags. If you have golf views, you will most likely get flagged. I had an insider look up my history and I did get a "5" for a golf property, most likely because of the GLA adjustment. All my other comps were golf, so I only had minimal adjustments. All my properties were also similar in size, but the difference was enough to make some GLA adjustments at $40 per sf when golf properties were selling for $200.

 

[Pam Wyant]

I don't know why GLA is different for FNMA. They seem to be obsessed with Price per sf no matter what the CU says. You can even read the FNMA example where they mention homes selling for $200 per sf but the appraiser only adjusted $15 per sf. Bob Murphy also does not get it. He was suggesting about $80-$100 per sf adjustments should be the norm.

The only reason to follow the 30% rule, is to avoid flags. If you have golf views, you will most likely get flagged. I had an insider look up my history and I did get a "5" for a golf property, most likely because of the GLA adjustment. All my other comps were golf, so I only had minimal adjustments. All my properties were also similar in size, but the difference was enough to make some GLA adjustments at $40 per sf when golf properties were selling for $200.

This is along the lines of what I was thinking in reading the square footage adjustment part of Fannie's letter. I get the distinct feeling Fannie is trying to drive our GLA adjustments.

 

[Mike Kennedy]

Mr. Murphy, "homes selling for $200sf" includes Land & Utilities, Locational attributes, View, Improvement Age, Physical Depreciation (unless New Construction), Functional &/or External Obsolescence- if any, Style, Design, Utility, Quality, Amenities, etc. <<< Subtle Hint.

 

[timd354]

I don't know why GLA is different for FNMA. They seem to be obsessed with Price per sf no matter what the CU says. You can even read the FNMA example where they mention homes selling for $200 per sf but the appraiser only adjusted $15 per sf. Bob Murphy also does not get it. He was suggesting about $80-$100 per sf adjustments should be the norm.

The only reason to follow the 30% rule, is to avoid flags. If you have golf views, you will most likely get flagged. I had an insider look up my history and I did get a "5" for a golf property, most likely because of the GLA adjustment. All my other comps were golf, so I only had minimal adjustments. All my properties were also similar in size, but the difference was enough to make some GLA adjustments at $40 per sf when golf properties were selling for $200.

I certainly hope that you are not suggesting that appraisers base their GLA adjustments upon 30% of the sales/$sf whether or not that is what is reflected in the market data because you think that will keep you from getting flagged by CU. Doing that would be unethical and a USPAP violation.

 

[timd354]

If you don't want to get flagged for GLA adjustments, CU seems to think that about 30% of the Price per SF is typical, unless there is a very expensive lot due to acreage or view.

And you know this to be true how? I highly doubt that CU is programmed to "think" that any particular % of the price per square foot is typical as the the model uses regression analysis to to extract what it believes the correct adjustments should be. As a result, while CU may determine that ~30% price/sf is the correct GLA in some markets or possibly that is the median amount of the GLA adjustment on a national basis, there is no doubt that CU would determine that the correct GLA adjustments in some markets would be substantially different than the 30% sales price.sf ratio. Appraisers should not base their adjustments on what they think CU wants to see, but they should base their adjustments on market data and provide adequate support for those adjustments.

 

[timd354]

all i see tim do is stick up for federal national mortgage association which makes me think he has a vested interest in CU.

I am not an employee of Fannie Mae of affiliated with them in any way. However, as the chief valuation officer of a secondary market mortgage insurer, I do have a vested interest in seeing CU succeed because if CU succeeds it will be utilized to identify unsupported appraisals and weed out appraisers who consistently provide unsupported appraisals or who commit appraisal fraud. Every skilled and honest appraiser should hope that CU succeeds in weeding out the fraudsters and the unskilled members of the appraisal profession.

 

[EddieB]

timd has a very impressive resume. From Certified Appraiser, mortgage broker, FNMA employee to his current position (my apologies for leaving something out). He is fully aware of the problems in the industry. Yet he continually resorts to blaming unsupported appraisals and fraudulent appraisers. It is no wonder he JT are such close friends.

If I have misinterpreted his position after reading many posts, then I stand corrected.

 

[Terrel L. Shields]

That being said, CU is an automated computer program that is not 100% accurate

Statistically, by its very nature, it would be lucky to be 50% accurate.

f CU succeeds it will be utilized to identify unsupported appraisals and weed out appraisers who consistently provide unsupported appraisals or who commit appraisal fraud

I didn't know Maryland had legalized marijuana. Dream on.