USPAP Standard Rule 2-1

[gregb]

The purpose of CU scoring is to identify appraisals that present higher collateral risk. If higher CU scores do correlate with higher collateral risk, then one would expect to to see more stips on appraisals with high CU scores. FYI, we did a blind internal study in which we withheld the CU scores from our underwriters - the results of the study showed that appraisals with high CU scores were declined and stipped at a substantially higher rate than those with low scores (even though the UW did not know the score).

Sure, but higher CU scores correlate with more complex properties, lack of comparable market data etc. No matter how many stips, the assignment still represents a complex assignment that is not going to be "fixed" by appraisal revisions.

 

[Terrel L. Shields]

The purpose of CU scoring is to identify appraisals that present higher collateral risk. If higher CU scores do correlate with higher collateral risk, then one would expect to to see more stips on appraisals with high CU scores. FYI, we did a blind internal study in which we withheld the CU scores from our underwriters - the results of the study showed that appraisals with high CU scores were declined and stipped at a substantially higher rate than those with low scores (even though the UW did not know the score).

Doesn't that imply the property that is less conforming is more likely to get the appraiser classified as a "bad" appraiser than if they turn down all but cookie-cutters?

 

[timd354]

Doesn't that imply the property that is less conforming is more likely to get the appraiser classified as a "bad" appraiser than if they turn down all but cookie-cutters?

It depends on who is using the tool and whether or not they understand what the tool does and does not do. I personally do not correlate high CU scores with bad appraisers (unless the CU findings uncovers evidence of appraiser dishonesty), but I have taken the time to understand what CU can and cannot do. CU is a good tool, bit like all other tools, it is only as good as the users of the tool. Do not confuse the efficacy of the tool with the stupidity and laziness of some of the user of the tool

 

[timd354]

Sure, but higher CU scores correlate with more complex properties, lack of comparable market data etc. No matter how many stips, the assignment still represents a complex assignment that is not going to be "fixed" by appraisal revisions.

And you know that exactly how? I have looked at a whole lot of appraisals with high CU scores and based on what I have seen, I would say that the number one cause of a high CU score is appraising a property in a suburban subdivision with a lot of recent sales and all or most of the appraiser's comps are not in that subdivision and CU finds the sales in the subdivision...these would not be complex properties. Additionally, we have plotted CU scores geographically and high CU scores are actually less prevalent in the most rural states despite rural areas having the highest percentage of complex/difficult appraisals

 

[jay trotta]

It depends on who is using the tool and whether or not they understand what the tool does and does not do. I personally do not correlate high CU scores with bad appraisers (unless the CU findings uncovers evidence of appraiser dishonesty), but I have taken the time to understand what CU can and cannot do. CU is a good tool, bit like all other tools, it is only as good as the users of the tool. Do not confuse the efficacy of the tool with the stupidity and laziness of some of the user of the tool

So can we assume the users of the Tool, for the most part would lack the education of understanding the purpose intended ?

 

[jay trotta]

And you know that exactly how? I have looked at a whole lot of appraisals with high CU scores and based on what I have seen, I would say that the number one cause of a high CU score is appraising a property in a suburban subdivision with a lot of recent sales and all or most of the appraiser's comps are not in that subdivision and CU finds the sales in the subdivision...these would not be complex properties. Additionally, we have plotted CU scores geographically and high CU scores are actually less prevalent in the most rural states despite rural areas having the highest percentage of complex/difficult appraisals

Interesting, any further input on that ?

 

[djd09]

I see no data. Blind studies with blind results.

Fannie screwed over the appraiser again when they included the freedom of reps and warranties associated with a score.

Now it is a "risk" score with bonuses if it exceeds their imaginary line.

 

[App601]

Sure, but higher CU scores correlate with more complex properties, lack of comparable market data etc. No matter how many stips, the assignment still represents a complex assignment that is not going to be "fixed" by appraisal revisions.

Gregb Excuse me that I change the discussion but you have a logo of California Republic. Is there a group or movement for secession ( bad word for USA) ? .... Interesting

 

[gregb]

Gregb Excuse me that I change the discussion but you have a logo of California Republic. Is there a group or movement for secession ( bad word for USA) ? .... Interesting

There is some noise about exit or independence, although not personally endorsing it:

http://www.sacbee.com/news/politics-government/capitol-alert/article167823307.html

 

[djd09]

deleted.