Uniform Appraisal Dataset
I do not quit. Not ever. I have a different perspective based on lifelong lessons from my father.
I did not quit when a lost helmet in the last play of the season made it painful to block during high school football. That effort got me my school letter despite being 3 quarters short. It was worth the headache.
I did not quit Boot Camp in 1969 when at 129 pounds and six feet, very few thought I’d make it. To this day I am proud of my earned title United States Marine.
I did not quit when my city council (more…)
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. (more…)
Whether you believe Fannie Mae’s comprehensive rollout of Collateral Underwriter will finally weed out the lazy form-fillers or it will end up euthanizing the aging residential leg of the profession once and for all, is not the subject of this article. There are plenty of blogs, articles, and seminars that are wrestling with the efficacy of CU and its long-term impact.
To be sure, the profession has entered the new age of big data. Residential appraisers will need to navigate regression analysis, heat maps, trend lines, oblique aerial images, and especially how to tie it all together into something meaningful.
From a regulator’s perspective, the new paradigm creates compliance challenges for appraisers and AMCs. Collateral Underwriter will be analyzing its own model data and data provided by an appraiser’s peers. Everyone needs to be aware that Fannie Mae’s label of “peer” is not necessarily synonymous with the USPAP definition of “peer”. (more…)
I recently received an AMC update and reminder about the need for and why actual comparable photos are necessary. My reply:
Original Comparable Photographs: Scope of Work Point 3: Inspection of the comparable sales from at least the street. This requirement does not tie the appraiser to a specific time for that inspection. Geographical competence would have the appraiser in the area of the comparables many times, and depending on the appraiser’s experience, for many years. Taking a photo a month, six months, a year or more after the sale, does not represent the sale’s condition at the time of the listing/sale. If the assignment is done in February in our Michigan area, what good are comp photos when there is two feet of snow covering the house and site? This archaic lender requirement should be brought to the technological times of today.
Point 2: Inspect the Neighborhood. Are we to photograph the entire neighborhood? If you have to in #3 why not in #2? The reason being we can get aerial photos from the internet. But wait, can’t we get comparable comp photos from the same place? The difference being??? (more…)
FNMA’s CU is causing a big industry ruckus. ICAP member Keith Wolf, SRA, AI-RRS, created a survey in January because opinions being posted across multiple message boards and blogs are fragmented. The results of this survey are out and show that a vast majority of appraisers believe Fannie Mae CU should be transparent. Nearly 70 percent of appraisers said that they will increase fees to cover the extra work CU may cause and 80 percent believe that CU risk scores will cause lenders and AMC clients to request appraisers to fit comps to the CU model. Also 73 percent believe that CU transparency violate Appraiser Independence by influencing choice of sales to get a better CU score. Below you will find the results of the survey. (more…)
The most feared date in the appraisal industry has come. January 26, 2015 arrived with much trepidation and trembling amongst myself and my appraiser colleagues. The day of the Collateral Underwriter (CU) had finally arrived. Yet, it turned out to be a pretty typical day for most. We are now over a week removed from the CU and I have yet to receive even one CU-related revision request. I guess that means one of two things; either I am an incredibly talented appraiser who uses all the best comps and supports every one of my adjustments, or I work for awesome companies who realize the flaws in CU and have chosen not to implement it. For purposes of my daily ego-stroking exercises, I choose to believe it must be the former.
Humor aside, CU is a big deal. Though I may not have received any revision requests related to CU yet (and I stress the word “yet”), many of my peers have. My inbox has been flooded the past few weeks (even before the 26) with questions and complaints from my fellow appraisers about CU. They are finding more and more of these requests and it is making their lives a bit frustrating. I get it. Revision requests (especially those pesky ones which are silly and really have no bearing on the final value) take time. Time is money in the independent, fee-appraiser world. Though I have yet to experience CU directly, it is only a matter of time.
The most frequent question I am getting right now from other appraisers is “What are you doing differently now that CU is here?” (more…)
The latest FNMA Lender Letter was released on February 2, 2015 (see PDF below). You really should print and read this new letter.
It attempts to smooth over lots of ruffled feathers among appraisers, AMC’s, Lenders, Underwriters, etc. To be honest, I find a bunch of ‘pipe dream’ info in this document.
Items such as:
- CU is a Fannie Mae–only risk management tool.
==> Freddie Mac is said to be working to implement this or a similar process very soon
- CU does not accept or reject appraisal reports or characterize an appraisal as “good” or “bad.” ==> However (more…)
Many of you know I scan various sources for appraiser/appraisal related info, and send out items I think are important.
Well, today Collateral Underwriter (the extraordinarily SECRET process developed by FNMA and given ONLY to LENDERS for report review) started.
As predicted by many appraisers, it already generated responses appraisers are forced to deal with, primarily because the reporting appraiser’s data (in the report) is different from “peer” reports.
As a poster to one of the forums said:
Fannie Mae’s new “tool” for lenders is the Collateral Underwriter (CU). This is a review program available to lenders so that they can compare the work of an appraiser on a property to other work the appraiser has done and to what other appraisers have done on appraisals of the subject property. This program compares your report to others. Comparing your work to all of the information they have in their database, using data from other appraisers to evaluate your work.
DON’T PANIC! Remember when the UAD came out and there was great angst among residential appraisers? Yet when the dust cleared, life went on and we adjusted. The same will happen with the CU. Many of you may not know that there has been review system called an AQM or Appraisal Quality Management that was designed to look at you through an Appraisal Management Company. The AQM is a software system that compares reports to industry standards and requirements. It has been in place for several years.
The CU (more…)
I’ve always said that I think it’s insane that everyone has access to appraiser-provided data EXCEPT the appraisers who generated the appraisals in the first place. That needs to be fixed. So, we’re creating a system enabling you to seamlessly share comps among yourselves. You’ll have the same data that’s being used to judge you.
We’re confident it will be effective: a la mode users alone generate enough appraisals per day to cover the entire market with high quality subject and comp data. With just the existing TOTAL and Aurora users joining in, tens of millions of comps will be available, exactly like in Fannie’s system – in high-quality UAD format.
How do we know that? (more…)
The latest ‘buzz word’ in our profession is an indication from Fannie Mae that as of Jan. 26, 2015, their Collateral Underwriter electronic review software (made available only to Lenders/AMC’s for 1004 and 1073 reports) will be able to compare your report info to other property reports and data narrowed down to a local CENSUS TRACT.
In my previous messages, I’ve asked a basic question:
When’s the last time you actually researched comparable sales or other property info based around local CENSUS TRACTS?
I would guess for the vast majority of (residential) appraisers you never have!
I would also bet that most appraisers never have seen (or even cared about!) (more…)
A few days ago, I watched the FNMA eLearning webinar “Introduction to CU” video showing how their new Collateral Underwriter will be implemented, starting on Jan. 26, 2015, applying to 1004 and 1073 Reports (initially).
You really should watch this also! CU applies to FANNIE MAE only; FreddieMac, VA, FHA, USDA are not involved at this time.
Click this link, and you’ll find the link to the video ½ way down on the left: https://www.fanniemae.com/singlefamily/collateral-underwriter
I captured a few screen shots of their presentation to help explain what will happen, and have added comments below:
Appraisers and report reviewers,
FannieMae issued an update to their Selling Guide on 12/16/14. It contains this pretty major change to their guidelines:
Adjustments to Comparable Sales
As a result of an analysis of Uniform Appraisal Dataset data specific to comparable adjustments, Fannie Mae has eliminated the 15% net and 25% gross adjustment guidelines and has provided clarification with respect to Fannie Mae’s expectations for the appraiser to analyze the market for competitive properties and provide appropriate market based adjustments without regard to limits on the size of the adjustments.
Appraisers should be concerned by Fannie Mae’s lack of transparency about its Appraiser Quality Monitoring system (AQM). In their published guidance and in various interviews, in the upcoming print edition of WRE (January 2015) and elsewhere, they remain mum on the specifics of a process that can potentially end an appraiser’s career.
If they have rules, procedures and guidelines in place to evaluate the work of appraisers in a fair and consistent manner, they are not making the details public. We believe it’s time that they do so.
This is from the cover story in the upcoming print edition of WRE, now in production:
Just as Fannie Mae promised in their July 2014 AQM FAQ, appraisers are now beginning to receive warning letters that their appraisals contain inconsistencies, inaccuracies, or data anomalies that may warrant “further action” should such behavior continue. Fannie Mae says that the intent of these communications is for “training and educational purposes” and to provide appraisers with an opportunity to improve their work before Fannie places them on the AQM (do not use) list. Appraisers across the country are receiving such letters from Fannie currently.
I just found this document (PDF attached) written primarily from a ‘lender’ perspective about the upcoming Collateral Underwriter, which applies only to 1004 and 1073 form reports effective Jan. 26, 2015…but probably will be carried over to the 2055 and 1075 form reports after the initial shake out cruise.
13 pages – will help you understand what FNMA will be looking for in terms of appraisal report QC functions performed by AMC’s, and the lender’s appraisal review departments. Knowing what they will be checking will help you avoid those errors.
Your first level of defense is to (more…)