CU “Enhancements” Are Coming
CU risk score, flags and messages
In about 6 weeks, Fannie Mae will make available to LENDERS only, and probably by default indirectly, to their AMC agents, enhancements or improvements (in their opinion) to the Collateral Underwriter electronic review process.
None of the Collateral Underwriter background info, especially about Fannie Mae’s ‘additional comps’ selection process, is shared directly with appraisers. But when these are returned to appraisers in the form of a Quality Assurance request from the lender or AMC, appraisers are expected to drop everything and immediately review those for applicability in the appraisal report.
Pay attention to the info and bullet points below that I have put in bold face red type.
You will notice one word below is larger than others. I had not seen this before today. I reviewed notes taken by another person who attended a Fannie Mae webinar about CU, and this word was mentioned. Apparently, Datappraisal refers to the giant data base Fannie Mae has on EVERY comparable and subject property submitted through the voluntary CU, and probably with EVERY report submitted to them for loan acceptance regardless of being processed with the CU. Submittal of reports using .env (Mismo xml) makes this incredibly easy.
Because Datappraisal is massive, 20 mil+ properties, it means FNMA is able to “see” the same individual property multiple times in multiple reports over a period of time, observed by multiple, or used by the same, appraisers. They are able to evaluate data points on these properties rapidly, and will flag a current report if a particular property is reported differently than most other appraisers do, or as used previously by the same appraiser.
Fannie Mae Collateral Underwriter Version 3.0 Release Notes
August 4, 2015
During the weekend of September 26, 2015, Fannie Mae will release Collateral Underwriter™ (CU™) Version 3.0 with the changes described below.
The changes in this release include:
- Availability of appraisal data, risk score, flags, and messages in the CU web application within 10 minutes of appraisal submission to Fannie Mae through the Uniform Collateral Data Portal® (UCDP®) (Forms 1004/1073 only)
- CU messaging enhancements
- Model enhancements
Enhancement to Provide Near Real-Time CU Feedback
The CU application will be updated to provide CU resultsthat include appraisal data and findings (CU risk score, flags, and messages) within 10 minutes of the submission of an appraisal to Fannie Mae in UCDP. This update, based on lender feedback, enhances lenders’ ability to use CU near real-time in their workflows to support appraisal quality control.
CU Messaging Enhancements
- Message set 603, which addresses adjustments applied in the wrong direction for all property attributes, will be retired and replaced with messages 621 (GLA), 623 (Condition), 624 (Quality), 625 (View), and 626 (Location). Each of the new messages will address adjustments in the wrong direction for a specific property attribute. Historic occurrences of 603 will remain visible.
- New message 632 will address the absence of time adjustments for increasing or declining market conditions that appear to be warranted.
- New message 1092 will alert the user when the CU analysis could not be performed due to a CU timeout issue and the user should resubmit the appraisal in UCDP.
The message changes will be available in the CU user interface and also in Desktop Underwriter®, Early Check™, and UCDP effective September 26.
- Enhancements to the Comparable Selection Model and CU messaging logic to improve functionality and accuracy.
- Design/Style and Parking data will be added to the user interface and Datappraisal.
For More Information about these Release Notes, lenders may contact their Fannie Mae customer account team. Additional information about these changes and general functionality will be available in the updated Collateral Underwriter User Guide after the September 26, 2015 release.
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Would you care for another serving of horse ship appraisers? You look famished.
In regards to Fannie Mae updating the CU platform, I say your welcome. An appraisal report has a specific client (a single lender) but big brother government steals the data from our reports to use against us without compensation. If a public company had exclusive use of all this appraisal data, its shareholders would be rewarded with a multi billion dollar evaluation. The fact that lenders will now have a CU report back in 10 minutes while the appraisers will still have no data available to them, is a joke. The fact that appraisals and appraisers get scored on a 1 – 5 scale by this system, but the scoring matric has never been presented to us, is a scam. Think employee review where your company doesn’t disclose how your performance is calculated and doesn’t even let you review your work file. WHAT! When experienced appraisers take on the complex assignments where value is supported but may be at the high limits of the neighborhood, why should we take the risk and liability when a negative higher score will be the norm? With TRID implementation looming and the unlikely higher pay for more complex assignments, why would I complete a complex property most likely to get a CU score of 2.5 to 3, when I can get paid the same on a non-complex property and receive a score of 1 to 1.5? When lenders turn down requests for higher complexity fees on complex properties, do they not understand the youngest and greenest of the bunch will then complete the work? If I go to my doctor, lawyer, mechanic, etc. and they explain a complex issue, what rational would I have to then go to someone less experienced?
As an appraiser, FNMA has always been a joy to work with (not !). I stopped working with them, but now I see that *everyone* will have the opportunity to to enjoy their arrogant behaviors. IMNSHO, they will not be happy until they eliminate what they call The Gold Standard, AKA *The Appraiser* from the appraisal equation, replacing any human element with statistical analysis.
“Resistance is futile, You will be assimilated”
Fellow appraisers, please visit http://mfford.com/html/c___r_fees.htm
Apologies for using my personal site but logistical and time constraints made it necessary.
It is to read a draft proposal for minimum national appraiser fees. I appreciate some believe no one other than themselves should set fees, and I concur. Except, in the real world of today where someone (lenders and AMCs) are ALREADY SETTING your fees. If not directly, then through ruinous less than customary OR reasonable fee competition.
Im interested in your meaningful, constructive feedback as well as comment & discussion here.
For those that insist ONLY regional fees are practical, this same system works for the lowest to highest regions of America. Subtract 13% for low cost areas; add up to 9%+- for higher cost areas.
Operating premises were:
1. AMCs are here to stay. Liked or hated, they are part of the chain now.
2. LENDERS want AMCs to offer one size fits all pricing. This MAY come close to doing so baring complex assignments. Even there, an inferred hourly equivalent is suggested.
3. If WE don’t set “reasonable” minimums for ourselves, then others will do it for us (or to us).
4. Framework allows for and includes inducements for trainees or less than certified appraisers-who have been largely excluded or ignored by AMCs in recent years.
In addition to posting here, PLEASE also email comments to JanBellas@appraisersguild.org
We are going to start reaching out to state coalitions and other appraiser peers groups. We hope to incorporate helpful comments or views in that effort. In the meantime our parent union is already being contacted to see how we can best proceed.
Thank you for taking the time to read and respond. Mike Ford, AGA; OPEIU/AFL-CIO