The latter meaning that lenders have already spoken on the issue. They expect ALL required FNMA and USPAP compliance to come out of the AMC fee. Translation: IT WILL NOT GET DONE.

You better bring more than some CU finding to challenge me on one of my reports let alone to make changes. I’m getting tired of this and thinking the states better start to challenge these attempts to subvert us appraisers.

Baggs: You are a scholar and a gentleman!

I’d urge all that are interested in the topic to read it. Especially those readers that are particularly versed in statistical analysis for real estate valuation purposes. Two things to keep in mind:

1. It is the process itself that was patented. Certainly it could be upgraded (and has been up through versions 4.2) – the underlying process would still have to be fundamental otherwise a new patent would be required, wouldn’t it?

2. Note the dates involved. Data up through 2014 was used for their database. FNMA lender letter of either January or February 2015 disclosed that in the past a majority (or if not majority; a significant number) of appraisers had been appraising to guidelines rather than market.

GIGO (IMHO)

Mike, you posted that last year. Here you go.

Fannie Mae Collateral Underwriter Patent Application

Fannie Mae Collateral Underwriter FAQs

Let’s be honest about how this works. The employees who use the system turn over frequently. The time and resource drain on the appraiser is notable and never ending. There will every day of the week, be a new ‘reviewer’ who has not read the above document.

True. Don’t you especially like the part where the service is intended for MI’s (purportedly mortgage insurers).

So now when the Direct Endorsement Lender-Client is Fly By Night Mortgage, using FNMAs criteria for expedited processing, with a CU score of 2.5 and a PIW was allowed the intended and [FNMA mandated]  authorized users are (1) the lender FBNM; (2) FNMA, (3) Some unknown PMI Company; (4) their internal staff of reviewers and other undescribed property experts, (5) the aggregator that will bundle the loans, (6) some re-insurer over in France (thank you AIG!) (7) Wall Street brokerages that will sell the (securitized) MBS (8) Worldwide investors (9) the SEC, and (10) FDIC…plus any specific lender regulators as may exist.

THIS is why I choose not to do anymore FNMA work at all! FNMA has simply become more trouble than they are worth…at all levels. I’ll do HUD/FHA work’ VA work if I ever bother to try to get on an approved panel, and private work, but there is simply no incentive to do anymore open-end-liability work for FNMA.

None.

However, the new 600 lb gorilla in the room is now “WHY do MI’s have a need to play “What if” games to my comparable sales and adjustments at all? To what end? Its a question for FNMA, not yourself.

What if the appraiser used a different comparable sale?

What if the appraiser adjusted the comparable $25 a sf rather than $150?

What if the appraiser didn’t adjust the comparable for the view?

What if the appraiser is wrong about the comparables selection?

What if FNMA had SR3 compliant appraisal reviews performed if there is any doubt?

What if FNMA and the MI leave tampering with MY appraisal and its results 100% alone?

What if lenders and mortgage insurers simply hired qualified people that were competent to make their decisions in the first place? Experienced, without need for  second guessing the process with a spurious program like CU ad it’s make believe “market data”? [see other articles in AB re CU reliability]?

What if those same people had the confidence, skill and knowledge to stand up like appraisers are expected to do, and say “I underwrote that loan. Right or wrong, it was MY decision based on a properly completed appraisal; an apparently qualified borrower and a properly completed loan package with all necessary verifications; and in accordance with applicable policies.”

There is no end to playing the “What if” game.

 What if it serves no discernible purpose except to create doubt where none should exist to begin with?