Collateral Underwriting Appraisal Messages

[factsandtruth]

Well at least you get a chance in writing to explain your facts. Fannie Mae wants an explanation for differences in CU information "credibility"....skimpies will not last putting "anything down".

 

[factsandtruth]

I hope all appraisers are reading the definitions before responding to CU....

 

[Highlander416]

It is a no win situation. So, let's say you have used a comp in 5 prior reports and rated it C3. Now, you get the message stating that peer data says C4. You can't explain the difference based on the lack of information. However, if you decide to change it, you will get a letter saying you used different ratings for the same property. I think this will be a mess.

 

[Rich LeMond]

Well at least you get a chance in writing to explain why your information is different than your peers..

Again, how can you explain the difference, when you don't even know what the difference is? All they are telling you is that there is a difference. You have no idea what it is.

 

[Highlander416]

I hope all appraisers are reading the definitions before responding to CU....

What about the definitions for location. Beneficial, Neutral, Adverse. In classes, I have heard a lot of different takes on these.

 

[factsandtruth]

Again, how can you explain the difference, when you don't even know what the difference is? All they are telling you is that there is a difference. You have no idea what it is.

Explain how your conclusions were brought about. "Bold and underline CU explanation" so anybody who reads your report will know your answers for CU questions. Bank, Lender, AMC...etc.

 

[factsandtruth]

That's what I would do...I don't know the answers, just common sense.

 

[knadave]

" Depends on the market. Every time I've tested it, there is no statistical difference between a GC lot and an interior lot on resale. Personally, I would never have one. I don't need 200 people or more a day walking past my pool, and getting their golf balls out of my back yard. An argument could even be made that it is an adverse location due to loss of privacy"

I agree that not all market show a measurable difference but most do in South Florida. Not sure what market you appraise in but I can show direct paired resales in some markets that show $100K to more than $1M adjustments for golf views verses standard views. I can even provide actual land sales that show a significant premium in some markets. I agree that some small retirement communities with the average home price of $125k may not show a measurable premium for a golf view but most communities definitely pay a premium for golf frontage in South Florida.

 

[Meandering]

Again, how can you explain the difference, when you don't even know what the difference is? All they are telling you is that there is a difference. You have no idea what it is.

All you can do is explain your reasoning, for the rating you chose.
Maybe fannie will be sending letters for all the appraisals of that property within the past year.

You might be answering "how come" questions for various appraisals for a year or more.

 

[Yellow Fin]

Just got a condition message from my client. "The quality rating for comparables #2 and 4 are materially different than what has been reported by other appraisers. Please update or comment."
I guess they are having a hard time to deal with CU system.

I asked to provide the details of other appraisers' ratings/opinions. I already fully explained/supported the adjustments in the original report, but who knows? I may made a mistake.... No respond from the client yet.