Collateral Underwriter (CU) Is In Full Swing!

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Collateral Underwriter (CU) was implemented on January 26, 2015. There was a lot of apprehension by appraisers and lenders. The good news is, the world did not stop turning!

Since it has only been a little more than a week, there are still adjustments to be made in appraisers’ and lenders’ processes. Change is inevitable in the world of mortgage lending and appraising and CU is just one more change.

This is the year that will be a turning point for real estate appraisers. Appraisers are actually going to become valuation analysts. The appraiser must become more than a collector of market data and form filler. The appraiser should not be afraid of “CU” but embrace it, understand it and be the best professional appraiser they can become.

In speaking with appraisers, some of them say it has been business as usual. Many appraisers are going the extra steps to ensure they address potential issues before submitting the report for review. Valuation Management Group incorporates the Collateral Underwriter findings into our overall review and requests that warnings be addressed just as we handle other requested revisions.

The VMG quality assurance reviewers are spending time explaining the warnings and flags to appraisers. As appraisers obtain a better understanding and knowledge of CU, we are confident the process will be even smoother for appraisers. The good news is that Valuation Management Group has found the majority of the risk flags to be a 3 or less. Fannie Mae suggests the lender, or their AMC on their behalf, employ additional due diligence on risk flags 4 and 5.

Valuation Management Group will continue to work closely with our appraiser and lender clients to ensure the changes are as painless as possible. Our ultimate goal is well supported and quality appraisals.

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 offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.

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