Uniform Appraisal Dataset

Collateral Underwriter Stew

Census Tracts, Hedonic Regression and the CU Stew

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Appraisers………

The new Collateral Underwriter electronic review process developed by Fannie Mae has many appraisers on edge. This will become the ‘ultimate authority’ or gold standard for reviewing appraisal reports as of January 26, 2015… at least as far as FNMA is concerned.  Your reports will either ‘pass’ or ‘fail’, depending on many factors.  Some of those factors are outside your immediate control.

“Big Data” is one giant pile of stuff that is being put into the CU pot, stirred together like a stew.  Except there is no master chef involved that ‘we’ can interact with.  Instead we have a bunch of secret sous chefs each contributing a chunk of meat, a bit of spice, some chopped carrots, and a few potatoes.  None of them, or us, really knows the actual CU recipe, because part of what’s in the stew is a ‘model’ of something unknown. But some of that Big Data in the CU stew could be yours … or it might be data provided by your peer appraisers who (more…)

CU Scoring Danger for Appraisers

Fannie Mae “CU” Scoring is a Danger for Appraisers

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Appraisers…

Many know by now that the GSE’s, primarily Fannie Mae, have instituted a new ‘appraisal scoring’ procedure based on an electronic read of your reports, specifically on a SFR 1004 or the Condo 1073Those are the only forms currently being analyzed by the CU process.

On Nov. 18, 2014, FNMA released a document named “UCDP Fannie Mae Appraisal Messaging Change Notification” which you can find here:   https://www.fanniemae.com/content/release_notes/ucdp-change-notification-01262015.pdf

I encourage all appraisers to actually read this document … all 11 pages.

When you do read this document, you will learn that your reports are being compared to your peer’s reports, and to your other reports, and to some unidentified ‘model’ FNMA uses. (more…)

Online Petition to Allow appraiser Access to Data They Provided Through the Uniform Appraisal Dataset (UAD) | Appraisers Blogs

Online Petition to Allow appraiser Access to Data They Provided Through the Uniform Appraisal Dataset (UAD)

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Fellow appraiser,

I am asking that you to take a moment to participate in this important industry effort.

Fannie Mae’s Collateral Underwriter (CU) will be available in the first half of 2015.  The CU performs automated risk assessment of appraisals submitted to the Uniform Collateral Data Portal based on information that you provided through the Uniform Appraisal Dataset (UAD).  The CU provides a risk score, flags, and messages to the lender.

The GSE’s have mandated that all appraisals be submitted in the UAD format; however, currently there are no plans to provide appraisers access to this data. (more…)

Fannie Mae Big Data Collateral Underwriter

Fannie’s New Collateral Underwriter to Check Appraisals Using Fannie’s Big Data

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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. (more…)

Market Conditions

Down the Rabbit Hole with the Form 1004MC

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OK, I admit it. I am old school. I still think you need to understand how to do something manually before you throw caution to the wind and buy into new technology to replace a good, old-fashioned, hands-on process that has worked fine for years. I honestly believe the use of technology without a complete understanding of how to do the basic process manually just lets us make more frequent and more complicated mistakes faster. In other words, if you can’t drive a Chevy Nova very well, don’t buy a Maserati Ghibli and expect it to fix your driving problems.  All that will happen is that you will be going faster when you hit the wall.

What does this have to do with the Form 1004MC? In the old days when television was black and white and when reporters reported the news instead of making it up, the officers of banks and savings and loans had to decide what their home loan lending policies would be. First, they had to decide if they would offer home loans at all. Next, they had to decide what cities they would make loans in (typically they would only loan in markets where they had deposits so they had firsthand knowledge of those markets). (more…)

Rating appraisers

VA Hiring Appraisers and Fannie Mae Re-Evaluating You Based on Your Adjustments

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If you were an appraiser looking for more work, this year’s Valuation Expo at the Flamingo Hotel in Las Vegas, June 23-25, was a good place to find it. Attenders included many product vendors, AMCs seeking appraisers, and representatives from agencies such as HUD and the VA.

Four sessions were offered for CE credit: “Keynote – panel of government and GSE representatives,” “Alternative Valuations,” “Valuation Visionaries,” and “Regulatory Compliance.”

In this month’s newsletter, I’d like to share some of the information covered by the Keynote panel: David Bunton of the Appraisal Foundation; Robert Murphy of Fannie Mae; Robert Frazier of the FHA; and Gerald Kifer of the VA.

Up first, Bunton shared information from the Appraisal Foundation, under which are all of the following: (more…)

XML appraisal format

VA Announces Electronic Appraisal Requirements

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Effective June 1, 2014, all Department of Veterans Affairs (VA) appraisals will be processed in WebLGY under the VA Appraisal Management System (AMS). Therefore, beginning June 1, 2014, all VA appraisals must be uploaded in WebLGY in Mortgage Industry Standards Maintenance Organization (MISMO) compliant XML 2.6 GSE file format as VA will no longer accept appraisals uploaded in WebLGY in PDF format. Prior to June 1, 2014, VA appraisals must continue to be uploaded in WebLGY in PDF file format.

Historically, VA appraisal form/formats conformed to appraisal industry form/format requirements, i.e. those required for conventional and/or Federal Housing Administration appraisals. In the past, VA collaborated with Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development to maintain conformity and assure VA appraisal form/format requirements were in conformance with the appraisal industry at large. VA new requirement for MISMO XML 2.6 GSE file format appraisals is in concert with the recent Fannie Mae and Freddie Mac announcement that for their conventional loans, effective on July 13, 2014, appraisals must be in MISMO XML file format. See https://www.fanniemae.com/content/news/ucdp-uad-newsletter-february-2014.pdf

MISMO XML 2.6 GSE file format appraisals will (more…)

Appraisal Basics - Image courtesy of jscreationzs / FreeDigitalPhotos.net

Back to the Basics

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The more I read residential mortgage related appraisals, underwriter comments and comments from the quality assurance departments from major lenders, the more I have come to realize that it is far beyond time to get back to “preaching” about the basics of this industry. For those of you who have been in the business back when you would take the photos, pull it out of the camera, wait a few moments before you pulled the front off the photo before coating it with the “magic wand” to keep it from fading (thank you Polaroid), I would recommend moving on to another post.

But for the so-called experts of residential appraisal, the current brand of underwriters, and quality assurance “experts” that are being paid to “play appraiser, lawyer and industry regulator” please pull up a chair and let’s puzzle through a few of the basic of this business.

First of all, if you are going to challenge the appraisal report, and your basis for this challenge is UAD please understand this, a Uniform Dataset was mandated by Fannie Mae for the purposes of selling the loan packages to Fannie and Freddie. These dataset requirements are important and should be honored by (more…)

Fannie Mae Updated Selling Guide - Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Fannie Mae Releases New Selling Guide

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In April 15, 2014 Fannie Mae released its updated selling guide. It conducted a comprehensive review of the Appraisal Requirements (B4-1) chapters of the Selling Guide. As a result of that review, new policies have been developed, current policies have been clarified, and additional guidance has been incorporated. Further, significant changes have been made. In some cases, topics and paragraphs have been re-titled and content has been reorganized with the expectation that searching for specific information will be much easier.

The clarifications are a result of internal reviews, frequently asked questions, and the analysis of Uniform Appraisal Dataset (UAD) data. Additional guidance has been incorporated into the Selling Guide to help lenders in their underwriting of appraisals.

Updates related to real estate appraisal are highlighted below:

Appraisal Report Forms and Exhibits

Added the requirement that a front photograph of the subject must (more…)

Coalition letter regarding appraiser blacklist

States Coalition Letter to FHFA regarding Fannie Mae’s Appraiser “Blacklist”

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Dear Director Watt:

On behalf of our membership of working appraisers, the undersigned organizations would like to recognize and send our appreciation to Fannie Mae for formulating a comprehensive strategy to protect this Nation’s mortgage industry from future harm. Fannie Mae’s influence has shaped the U.S. Housing market into what we have today…the backbone of our Country’s economy.

As real estate appraisers who have survived the past few years’ turbulence, we realize, more than ever, how valuable our role is as unbiased observers of the market. Our role is to document and provide proof that will transcend time and survive critical analysis by those who depend on our knowledge, expertise and unbiased conclusions.

All actions have potential for unintended consequences. Those implemented by Fannie Mae, even more so, due to Fannie’s involvement in the majority of the Nation’s housing transactions. Fannie Mae’s new “Appraiser Quality Monitoring” initiative that creates an appraiser “do not use list” or “blacklist” has alarmed many (more…)

Fight Back Blacklisting

The End Is/Must Be Near: Advancements in the Art of Blacklisting

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If you are a real estate professional, please read this, especially if you fear your own business is being damaged by all of the new regulations designed to “help” the real estate industry recover.

Imagine you, a hardworking, law abiding taxpayer, are sitting at home one evening watching television when there is a knock at your door. Somewhat surprised by the late hour of the visit, you get up and open the door and three IRS agents barge into your home and declare, “We are from the IRS and we are here to help.” I think it’s safe to say you would be both shocked and concerned. If you are involved in residential real estate, what has happened to most of you since the market collapse began in 2007 is similar to this scenario. You see, most professionals working in residential real estate were doing the right thing all along so many of the knee-jerk decisions made after the market collapsed are about as useful and helpful as three IRS agents showing up on your doorstep in the middle of the night.

There’s TARP I, TARP II, HVCC, Dodd-Frank, CFPB, AMC, UAD, UCDP and AVM, and now there is something new called AQM. In typical government fashion, the medicine being administered may actually be killing the patient. In this case, the patient is the residential real estate market. Thanks to the power ($$$$) of lobbyists representing (more…)

USPAP violations ~ copyright AppraisersBlogs.com

FHFA: Fannie, Freddie Fail to Analyze Appraisal Data

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Fannie Mae and Freddie Mac failed to fully analyze data from the Uniform Collateral Data Portal and continue to take unnecessary risks when purchasing and guaranteeing single-family residential mortgages, according to a report from the Federal Housing Finance Agency’s Office of the Inspector General, Mortgage Daily reported Feb. 6.

The report indicated that the two government-sponsored enterprises are not taking full advantage of appraisal data collected through the UCDP that the Federal Housing Finance Agency directed the GSEs to use in 2010 in an effort to improve loan quality and risk management.

Mortgage Daily reported that the GSEs purchased and guaranteed six million loans valued at $1.3 trillion in 2012 alone. The UCDP was designed to make it easier for the GSEs to evaluate the large volume of loans that they are being asked to guarantee and purchase. The system notifies sellers if appraisals fail to meet Fannie and Freddie standards.

The OIG report (more…)

FAQ

Fannie Mae’s Appraiser Quality Monitoring List FAQs

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Appraiser Quality Monitoring Information

Fannie Mae has published a new web page with information about the recently implemented Appraiser Quality Monitoring (AQM) process. The new AQM web page includes FAQs and a link to the AQM list identifying appraisers whose appraisals will be subject to 100% review by Fannie Mae or whose appraisals are no longer accepted by Fannie Mae. The AQM list is protected content, and approved Fannie Mae sellers/servicers may set up access through Technology Manager.

Appraiser Quality Monitoring (AQM) FAQs

Fannie Mae began collecting appraisal data in 2011 through the Uniform Collateral Data Portal® (UCDP®). Millions of appraisals have been submitted by lenders and their authorized agents, enabling Fannie Mae to monitor and evaluate appraisals for data accuracy and consistency. Leveraging the availability of standardized appraisal data, Fannie Mae issued Lender Letter LL-2013-10, Appraisal Quality to remind lenders of Fannie Mae’s appraiser selection requirements, highlight several data quality issues, and describe new processes that Fannie Mae has implemented to identify and monitor individual appraisers. These FAQs relate to the Appraiser Quality Monitoring (AQM) process.

Q1. What actions will Fannie Mae take with respect to specific appraisers? (more…)

Appraisal quality - Image courtesy of  Stuart Miles / FreeDigitalPhotos.net

Appraisal Quality and UCDP Notification

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On December 10, 2013, Fannie Mae issued a lender letter focusing on appraiser selection, data quality issues, and new processes for appraiser monitoring, and has added messages in UCDP related to appraisals from specific appraisers.

Appraisal Quality

Fannie Mae began collecting appraisal data in 2011 through the Uniform Collateral Data Portal® (UCDP®). Millions of appraisals have been submitted by lenders and their authorized agents through UCDP. UCDP enables Fannie Mae to monitor and evaluate appraisals for data accuracy and consistency. The purpose of this Lender Letter is to remind lenders of Fannie Mae’s appraiser selection requirements, highlight several data quality issues, and describe new processes that Fannie Mae has implemented to identify and monitor individual appraisers.

Appraiser Licensing Requirements

Fannie Mae performs a weekly check of appraisals submitted through UCDP against the (more…)

UCDP Appraisal Notes - Image courtesy of Master isolated images / FreeDigitalPhotos.net

Fannie Mae Releases UCDP Appraisal Notes

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Fannie Mae will implement new proprietary appraisal messages in the Uniform Collateral Data Portal beginning Nov. 9, the government-sponsored enterprise reported Sept. 24.

The new appraisal messages will expand on existing Fannie Mae appraisal messaging and focus on providing additional data validation and reasonableness checks. The messages also will highlight possible eligibility concerns prior to loan delivery.

The data included in the reports is based on the appraisals provided to the UCDP in the previous month, and includes an overview of all appraisal messages (including Fannie Mae critical messages), (more…)

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