FNMA Messages

[Chase UW]

I am not an appraiser but I have been an UW and have reviewed appraisals for over 30 years.

I review appraisals for a major lender and I am starting to see a bunch of new warning messages from FNMA Collateral UW. I am looking at an appraisal where the subject is noted as being in C3 condition. The error message I have received is "The condition of C3 conflicts with the reported age". There is no deferred maintenance so it should not be a C4.

My understanding is that the age is not what drives the condition rating so why would FNMA have this error message out there affecting the scores. Now that FNMA gives full indemnification for loans that score 2.5 or lower I am noticing a lot more hits like this.

The funny thing is that the comps in the report have similar ages and C3 rating as well and the warning message is only firing for the subject?

Can anyone provide an appraiser's opinion on this one?

 

[Joe Flacco]

I think of the C ratings as a reflection of effective age and reported age is actual age. So in my opinion they may conflict often. It sounds like the CU robot is not very sharp and is confused.

 

[djd09]

Only the special get to see CU. You are asking the wrong group. Don't they have an override code?

 

[JTip]

99.9% of homes have some sort of deferred maintenance (around here); C4.

Unless you have a brand new or renovated home, your home is a C4 too.

Take 5 minutes and walk through your own house and you will find something the wife wants fixed.

Bonehead appraisers that blanket the market with C3 end up getting realists using C4 bad scores. I'll take that 2.5 score......Try holding Ctrl - Alt - Down Arrow to override.

 

[Chase UW]

Unfortunately, we cannot override the codes and the score stands as is. If the score is 2.5 or less FNMA is now giving lenders full indemnification (no future repurchase possibility). On this report the effective age is 35 years and actual age is 75 with no deferred maintenance noted?

 

[Terrel L. Shields]

On this report the effective age is 35 years and actual age is 75 with no deferred maintenance noted?

It should note somewhere that it has been remodeled? It surely has been remodeled. as that places the actual age pre-WWII. Certainly the kitchen and bathroom would have to have been remodeled wouldn't they?

Now that FNMA gives full indemnification for loans that score 2.5 or lower I am noticing a lot more hits like this.

Are you implying that Fannie Mae is making it harder to get that lower score so that they are not giving indemnification? So they are doubling down on the appraisal/appraiser? As noted above we are not given any access to the "big data" we generate for their use.

 

[djd09]

Does a 2.5 score mean it is an average appraisal?

 

[Mike Kennedy]

"On this report the effective age is 35 years and actual age is 75 with no deferred maintenance noted?"

ANY recent (not 35 yrs ago) upgrades, updates listed in the report? Substantiation for the effective age opinion above is required. See C3 & C4 fannie defs below>>

 

[RSW]

Unfortunately, we cannot override the codes and the score stands as is. If the score is 2.5 or less FNMA is now giving lenders full indemnification (no future repurchase possibility). On this report the effective age is 35 years and actual age is 75 with no deferred maintenance noted?

It would take a lot of updating to bring a 75 year old home up to a C3 IMO. Those updates should be spelled out in the appraisal report on the lower section of page 1 of the URAR. Check it out and let us know what you find.

 

[djd09]

Thank the writers of the UAD. There here.