Posts By: Keith Morgan

Decline in Property Valuation and Appraisal Fraud

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Good news for the real estate market place: The LexisNexis Annual Mortgage Fraud Report and analysis of the data shows that appraisal and property valuation fraud have declined significantly from last year. The percentage of loans with appraisal or valuation fraud dropped to 15% of loans with mortgage fraud. In 2012, 26% of loans reported signs of… Read more »

Valuation Management Group is Preparing for Collateral Underwriter (CU)

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Collateral Underwriter is a week away from being utilized on all appraisals delivered to Fannie Mae through the UCDP portal. Fannie Mae has provided a number of tools to help lenders, appraisers and appraisal management companies to be prepared for the January 26, 2015 release. Go to the Fannie Mae CU Page for more information… Read more »

Understanding Collateral Underwriter (CU)

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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… Read more »

Are You Ready for Collateral Underwriter?

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Collateral Underwriter (CU) is the proprietary appraisal risk assessment application developed by Fannie Mae to support proactive management of appraisal quality. CU will be active at the time of upload to the UCDP on January 26, 2015. Lenders may use the CU risk score to segment appraisals by risk profiles. Risk Flags identify appraisals with… Read more »

USPAP Issues and Concerns – PART IV

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The 2014 USPAP Q&A publication had another interesting question that was posed to The Appraisal Foundation’s Appraisal Standards Board: Question: I have received inquiries from various companies regarding appraisals I have completed for others. Typically, I receive a letter that includes the address of a property I previously appraised, along with the effective date of… Read more »

USPAP Issues and Concerns – PART III

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Continuing with insights from The Appraisal Foundation’s Appraisal Standards Board USPAP Q&A publications this year, another query made and addressed in the October 28, 2014 publication is regarding use of certain terminology, specifically “USPAP Certified Appraisers” and “USPAP Certified Appraisals.” The following question, posed by an appraiser, and The Appraisal Foundation’s Appraisal Standards Board answer:… Read more »

USPAP Issues and Concerns – PART II

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  This week, as promised, we continue to share insights on some common and important issues for VMG clients and vendors from The Appraisal Foundation Board Q&A newsletter. This time the topic tackles the hot button of appraised value versus contract price. The Appraisal Foundation’s October 28, 2014 publication shared the following question posed by an… Read more »

USPAP Issues and Concerns – PART I

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The Appraisal Foundation Appraisal Standards Board periodically publishes a Q&A newsletter on USPAP issues and concerns voiced by appraisers. We always find them interesting and, many times, scenarios are presented that may have not been encountered or thought of as an issue. In the Appraisal Foundation’s October 28, 2014 publication, three questions were posed, and answered, by… Read more »

Fannie Mae Introduces Collateral Underwriter (CU)

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On October 20, 2014, Fannie Mae announced that it will make its proprietary appraisal risk assessment analysis available to its lenders. It was developed by Fannie Mae utilizing the appraisal data prepared by appraisers and delivered to the GSE’s by its lenders and their appraisal management companies. According to Fannie Mae, the Uniform Collateral Data… Read more »

1004D Appraisal Update vs. Completion Certification (Final Inspection): What is the difference?

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Form 1004D serves two distinct purposes and the scope of work for each is different.  Please see below for specific ordering instructions with Valuation Management Group (VMG). The top section of the 1004D is used to update a previous appraisal and to certify that the market value has not declined. The appraiser is required to… Read more »