Collateral Underwriting Appraisal Messages

[djd09]

on one hand the AMC looks for the lowest bidder and then in the other fannie wants quality appraisals. why should i think that system is gonna work.

 

[kevco]

on one hand the AMC looks for the lowest bidder and then in the other fannie wants quality appraisals. why should i think that system is gonna work.

It's not going to work. Enter CU!

 

[KenAZ]

IF CU doesn't read the appraiser's commentary, why are they asking for the appraiser to add more comments?

The theory is that the appraiser comments are used by the underwriter to remove the flags.

 

[Meandering]

The theory is that the appraiser comments are used by the underwriter to remove the flags.

I got that.
But I'm wondering what the liability is to the underwriter for NOT removing flags that should have been removed?

There are some very brave people on this forum that fought monster battles with gorillas when the appraisers were right. Years some of them fought, only to get a, yeah you were right, sorry. But business as usual for gorillas while the appraisers suffered financial, personal and emotional losses. How long must we individually battle gorillas?

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[KenAZ]

They have to remove the flag before they submit the report, otherwise FNMA will not buy the loan.

Unfortunately we can't win any of those battles now. Appraisers that were on the inside creating the CU for access by appraisers were fired when they objected to FNMA not letting appraisers use it.

 

[Meandering]

Thanks Ken.

I was wondering how that worked.

Darn shame some appraisers lost a job over wanting what would have been a better case scenario for appraisers.

But it makes me wonder if the purpose of the CU was not so much to annoy appraisers as it is to annoy underwriters. Make 'em read those darn reports!

Thanks for your input.

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[KenAZ]

I think you are on to something. The unofficial word is that CU was invented to help underwriters defend themselves from buybacks.

 

[Ron debo]

When FNMA rates the appraisal or appraiser do they look at the most important data they probably failed to collect Full Appraisal Fee - AMC fee - Appraiser fee. They should regression that.

 

[Meandering]

I think you are on to something. The unofficial word is that CU was invented to help underwriters defend themselves from buybacks.

That definitely makes more sense and is why appraisers can't see it, so we would not be arguing with underwriters.

Yup, it's going to slow down the lending process, but I suspect that if your reports ding the CU too many times, you'll be removed from rotation by the underwriter, because you'll be making them work too much. This might produce that "flight to quality" appraisal wet-dream, but more than likely will just bred new and more exciting ways of slipping it past the system such as consistently rating every comp the same.

 

[The Bob]

They have to remove the flag before they submit the report, otherwise FNMA will not buy the loan.

Do you have a link to that info?