How should lenders use CU findings to inform conversations with appraiser's (new from Fannie Mae)

[Deleted member 80407]

Guidence supplied by Fannie Mae in regards to how should lenders use CU findings to inform conversations with appraiser's (see below thumbnail).

Web site supplied by the Columbia Institute (for complete FAQs):
http://www.naappraisers.org/Collateral Underwriter-FAQs 02.2015.pdf

 

[Deleted member 80407]

Also review Q4 in regards to: "using the licensed application in a manner that interferes with the independent judgment of an appraiser.

 

[CANative]

They can't just copy and paste raw CU output and demand that the appraiser figure it out or explain. They can use the output to analyze potential problems or concerns and articulate their concerns.

 

[Randolph Kinney]

The results of CU will be the perversion of appraisal methodology. Like rats, appraisers learn what works to keep out of the trap.

 

[CANative]

The results of CU will be the perversion of appraisal methodology. Like rats, appraisers learn what works to keep out of the trap.

IMO, CU is the work of a flipping genius and will weed out the idiots and cheaters, improve the skills of the marginally trained, and in the end result in better valuations.

 

[Randolph Kinney]

... end result in better valuations.

Better for who?

Wasn't licensing suppose to have made it "better"?

Wasn't more education requirements suppose to have made it "better"?

Wasn't background checks suppose to have made it "better"?

Wasn't Dodd-Frank suppose to have made it "better"?

How much better can it get?

 

[Riick]

>> How much better can it get?

That drew a good laugh -- Thanks, I needed one.

 

[TRESinc]

this is nothing new. it's the same stuff that was in the last lender letter from fannie.

 The risk analysis performed by CU is for exclusive use by the lender in their analysis of the appraisal report. After completing a thorough review, a lender should be able to have constructive dialogue with the appraiser to resolve specific appraisal questions or concerns. Although the lender may use output from Collateral Underwriter to inform its dialogue with appraisal management companies and appraisers regarding appraisals they supplied, the CU license terms prohibit providing these entities with copies or displays of Fannie Mae reports that contain CU findings, including without limitation the CU Print Report, the UCDP Submission Summary Report, or any other CU report. The lender must not make demands or provide instructions to the appraiser based solely on automated feedback. Also the CU license terms prohibit using it “in a manner that interferes with the independent judgment of an appraiser.” Fannie Mae expects the lender to use human due diligence in combination with the CU feedback, and will actively follow up with lenders who are reported to be asking appraisers to change their reports based on CU feedback without any further due diligence.
 Fannie Mae does not instruct or suggest to lenders that they ask the appraiser to address all or any of the 20 comparables that are provided by CU for most appraisals. It is also not Fannie Mae’s expectation that appraisals should contain only CU’s top-ranked comparable sales. In the majority of cases, there may be no material difference between comparable sales utilized by the appraiser and those identified by CU. Before asking the appraiser to consider any alternative sales, it is imperative that the lender analyze the relevance of the sale and determine if the use of such sale would result in any material change to the appraisal report. If the lender determines that there would be no material change, then they should not ask the appraiser to make revisions. Fannie Mae expects CU to enable lenders to accept appraisals “as is” with greater confidence.

 

[djd09]

IMO, CU is the work of a flipping genius and will weed out the idiots and cheaters, improve the skills of the marginally trained, and in the end result in better valuations.

who is the genius? gotta have a name?
If they can't figure out cheaters by now then they are the flipping idiots.

 

[KenAZ]

>> How much better can it get?

That drew a good laugh -- Thanks, I needed one.

Just to keep you up to date, . . . Appraiser fraud has dropped dramatically over the past 10 years.

Really can't get better until they leave us alone and let us use our brain power to appraise, instead of spending most of our brain power trying to pass CU, AMC standards, FNMA blacklist, Bracketing, etc.