The week of December 15, 2014, Valuation Management Group started seeing the Collateral Underwriter (CU) risk flags and specific warnings. Fannie Mae stated that CU would be in place beginning January 26, 2015, but for some clients it started this week, as part of a pilot group.
It is very important for appraisers to understand how the appraisal and review process is changing.
Fannie Mae is providing information to help everyone understand Collateral Underwriter. Here are some resources to assist you:
Go to www.fanniemae.com/singlefamily/collateral-underwriter (on demand e-learning section) and listen to Fannie’s two webinars for underwriters; very good with excellent illustrations and explanations. You need to register, but it is very easy and you go directly to the webinar and can return at any time. There are lots of links on the web page for more information. Appraisers gaining an understanding of the process will reduce questions and reconsiderations.
VMG’S observation thus far is that appraisers must comment on sales in close proximity to the subject if they are not being utilized as comparables. It is important to address those sales in the original report with sound reasoning on why the appraiser does not consider them to be comparable. If the appraiser is proactive in their explanation, it will keep them from having to address the sales after the report is complete and in review.
Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We take the process from ordinary to extraordinary.