New Fannie Mae CU Training Video
Training admits that CU use of CENSUS BLOCK GROUPS
FNMA has released a new training video that helps lenders understand how to PROPERLY use Collateral Underwriter, which in some cases has not been happening since Jan. 26, 2015.
By reviewing this info, you can learn how to write reports that pass the CU evaluations, and make your reports more complete and accurate. But keep reading.
One thing I find interesting is CU assigns a unique ‘appraiser number’ for every appraiser who has reports submitted by Lenders to the CU. They don’t just use the appraiser’s license number by itself.
Secondly, this training will show you how Lenders are able to search all kinds of appraisal data, for your work, and how your submitted reports (and the data within) compares to ‘other appraisers’ and public records, and their proprietary AVM ‘model’ which selects “up to 20” additional so-called comparable properties.
This training also admits that the CU’s use of CENSUS BLOCK GROUPS is not how most appraisers search for comps and collect data. So I’d recommend not getting highly agitated about this. However, the training also admits that CU/FNMA uses CENSUS BLOCK GROUPS because that info is readily available to THEM.
Most dramatic to me is the CU process in its entirety is giving UNLICENSED people at the Lender (and by extension to their AMCs) the ability to act like an appraiser. The presumption is that CU data is more accurate than the decisions made by the local appraiser.
CU is an overwhelming process for most untrained people and those who don’t have ‘boots on the ground’ in the local area. CU is an attempt to turn imperfect real estate into perfectly scientific analysis and electronic decision making.
It’s no wonder to me that some Lenders are deciding NOT TO USE the CU for appraisal report evaluation.