My First Collateral Underwriter Revisions

[J Grant]

IT may not be dreaming. If the appraiser who was correct shows solid evidence for his lot size, and the three skip pies whose lot sizes comprised the CU data can not show evidence of their lot size , what happens then? I have no idea. at this point my opinion is it is creating a lot of busy work and at best might accomplish identifying a handful of the truly incompetent who are so bad they could be identified anyway if anyone was paying attention. .

 

[residentialguy]

I highly HIGHLY doubt that they will go back and double check that the majority shows support just because an outsider shows support. They're not interested in truth; they want to give everyone the false impression that they care...when in reality it's their way of diverting from the real truth that they are the real reason the housing industry went titsup. And now they're doing it again! Interest rates today are lower today than the averages of the past 40 years. Financial institutions have been lowering their standards at a record pace. Dec 2014, Fannie Mae just announced the availability of 97% financing and would begin accepting applications immediately for borrowers with FICO credit scores as low as 620 as well as offering limited cash-out refinances. Buyers can buy more when lenders lower their standards...an idea which led to no-doc loan applications and toxic mortgages of the last bubble. But hey, don't blame FNMA...there're trying to make the industry better with their new CU tool.

 

[Lee Lansford]

I


I just do not understand why we need to be in the dark about how other appraisers are viewing homes etc. What are they afraid of? That we will use the data to run our own AVM? To come up with our own statistical models? etc.

If...IF...all that is available via CU were available to all appraisers, few (very few) appraisers would--armed with the information--dare to go contrary to the "wisdom" of the majority of the others.

 

[ucbruin]

I received my first one Friday.

Q:

Do you recall the time lag between submitting your report and receiving CU response?

 

[Dan Umstead]

I think the answer is here, from Lender Letter 2015-2.

"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.".


They do not need a comment, until the UW has done his/her due diligence in regards to the quality of the appraisal report. If, after the UW has done their due diligence, they can ask for commentary. They CAN NOT just ask for comments in the appraisal report, as a matter of business. Due diligence must come first.

If an AMC is requesting, after the AMC ran the appraisal through the CU, you should contact FNMA, as AMCs are not allowed to have access to the CU.

 

[residentialguy]

Good post, Dan!!!

 

[Mike Seward]

Good post, Dan!!!

I would guess that many (most?) UW's will just pass the comments/comps on to the appraiser without doing any research.

 

[miktay]

"Please forward to our office all my peers former appraisals so that I can make mine like theirs. Thank you".

 

[Ray Christ]

IS THERE SOMETHING I'M MISSING? I DON'T READ ANYTHING THAT THERE HAS TO BE CHANGES IN A REPORT FOR ITEMS THAT ARE WARNINGS. THIS APPEARS TO BE A LENDER MISLEAD OF WHAT HAS TO BE DONE. CAN THE LENDER REALLY RESUBMIT THE REPORT? I DON'T THINK SO or I MISSED SOMETHING.? I BELIEVE A WARNING IS JUST THAT AND IT'S NOT A HARDSTOP. FRANKLY, AS I SEE IT MOST OF THE LENDERS AND AMC DON'T KNOW WHAT THEY HAVE TO REPLY TO or NOT.

CHECK THIS DEFINITION OF PEER ...
peer1
pir/
verb
verb: peer; 3rd person present: peers; past tense: peered; past participle: peered; gerund or present participle: peering

1. look keenly or with difficulty at someone or something.
   "Blake screwed up his eyes, trying to peer through the fog"
   synonyms: look closely, try to see, narrow one's eyes, screw up one's eyes, squint
   "he peered at the manuscript"

 

[Meandering]

” 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.".

So where do you report them?

Oh right,

NOWHERE.