Fannie Mae Reviews - Excessive value message

[Pamela Crowley (Florida)]

Go to:

http://www.efanniemae.com/singlefamily/ori...ease_notes.html

then go to:

Release Notes
These describe enhancements to the DU underwriting system and are associated with the Guide to Underwriting with Desktop Underwriter.

Click on:

July 2002, Version 5.2
Release Notes for Lenders (posted 05/29/02)

Pay attention to pages 3 and 4.

Especially this area:

"Excessive value message":

 

[Nancy in Friday Harbor]

Thanks, Pam. Maybe that explains why I'm getting so many review assignments lately. 3 in the last month -- which is a lot for this market. And they were all GARBAGE!!! One was clearly fraudulent -- a MH compared to three good quality site builts and then the appraiser "forgot" to mention the full finished basement, the significant guest house, etc. etc. The other two looked like the appraiser got a number to hit, found three sales close to or above that number and made adjustments to make the solution fit the answer. BAD BAD BAD :evil: :x :x
Haven't had the time to put together a packet to send to the state -- need to make sure I have all MY ducks in a row -- but it WILL HAPPEN!!

Nancy

 

[slacker]

Go to:


Especially this area:[/color]

"Excessive value message":

Pam,

Are you saying that this is a good thing or a bad thing? I see it as a positive. Seems that they are at least trying to take a proactive approach in identifying potential risks.

 

[Jo Ann Meyer Stratton]

It sounds like a start to me. The lender will need to review the appraisal and resubmitted to see if it is still excessive. "Lenders continue to be responsible for the property appraisal representations and warranties when Dectop Underwriter requires an appraisal." The only problem with that is that the broker or lender just simply orders another appraiser from a non-conservative appraiser and puts the borrower in a different loan package, so the predatory lending will continue under a different path.

Naturally I had to jump to page 13 regarding Factory Built Housing. See how important it is to correctly identify the building code for the subject?

Also on page 13 is discussion regarding constructio to permanant transactions on a 2055. Which answere the question of whether a 2055 can be used for new or proposed construction.

I also found their Guidelines for Entering Property Addresses very interesting. I have been attempting to do something very similar for over 15 years, just for the ease in managing my own data bases.

Okay everybody you have a new assignment! In addition to reading Chapter 2 of the new selling guide you need to read the 17 pages of the Desktop Originator / Destop Underwriter Version 5.2 Release notes.

 

[Pamela Crowley (Florida)]

I think this is a positive step. It should put some of those LOs on notice and I'm looking forward to more review assignments. Even though I know many will just send them to another number maker.

Jo Ann, not many seem to be paying much attention to the guidelines posted here. I'm paying attention and not only are people not commenting on them, most are not even reading them.

 

[Jo Ann Meyer Stratton]

I've noticed that too! That is why I am being a "nag" and mention it every chance I get. If every appraiser in the USA would just sit down, read USPAP, Fannie Mae Guidelines, lender's supplemental standards, HUDs 4150 and referance guide and then just think through what they have read--wouldn't it be wonderful?? Might help stop some of this predatory lending and non-conservative/cooperative appraiser problems that are occurring.

 

[Nancy in Friday Harbor]

JoAnn,
Did you notice that Fannie is experiencing delinquency rates "three to four times worse" on manufactured homes than site built? That says to me they are going to be scrutinizing MH loans/appraisals more than ever. Good step.

Great link Pam. Thank you!

 

[Tim Hicks (Texas)]

Hey, hey, hey. Give us a break, I read them I have just been too busy to comment. Yes, FNMA and Freddie have been actively reviewing appraisals for about a year. They have been concentrating on foreclosed properties and MH foreclosures especially. They are in the process of removing certain appraisers from their approved lists, but just like all government functions, red tape gets in the way. They are building cases against several appraisers and it will take time, but hopefully something good will become of it.