FNMA Big Data to Check Appraisals
FNMA New Collateral Underwriter to Check Appraisals Using Fannie’s Big Data
FNMA Collateral Underwriter Flyer showing info about the FNMA Collateral Underwriter process they will make available to lenders (NOT APPRAISERS) in January 2015. You should review it. It has to do with their Enhancement of Risk Controls.
This is what we know as Appraisal Quality Monitoring (AQM), which was announced almost 2 years ago. FNMA has already been using the ‘scope’ on your reports, but will soon allow the lenders to have access to the software so that they can do pre-submittal exams prior to uploading the loan file, and your appraisal, to FNMA.
Virtually everything is digital now in our real estate appraisal world. That makes it incredibly easy for ‘big data’ to be analyzed very quickly and efficiently. Hiding relevant property info under a rock, your clipboard [tablet?], or just ignoring it, is no longer possible. Discrepancies will be found fast, and you will be asked for explanations or corrections.
Note the examples from the flyer:
- Chain of property ownership
- Inconsistency in reported property data from your info compared to your peers (subject & comps)
- Checking adjustments made (or not made) – primarily the math
- Testing for comps in terms of location, characteristics, sales prices, etc.
FNMA’s news release about their Collateral Underwriter:
Introducing Collateral Underwriter
Collateral Underwriter™ (CU™) is a proprietary appraisal risk assessment application developed by Fannie Mae to support proactive management of appraisal quality. CU will:
- Provide additional transparency and certainty by giving lenders access to the same appraisal analytics used in Fannie Mae’s quality control process.
- Perform an automated risk assessment of appraisals submitted to the Uniform
- Collateral Data Portal® (UCDP®) and return a CU risk score, flags, and messages to the submitting lender.
- Be available at no charge so lenders can take full advantage of the application for quality control and risk management purposes.
The CU risk scores, flags, and messages will be available to all UCDP users in real-time beginning on Jan. 26, 2015 through UCDP. Find more information on the CU web page at FNMA Collateral Underwriter.