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 Portal (UCDP) has collected nation-wide over 14 million appraisals and over 20 million transaction records to date.
Fannie Mae stated, “offering Collateral Underwriter to lenders should help them expand access to mortgage credit by providing increased certainty around the repurchase risk and to help lenders find and assess potential appraisal issues before closing and delivery of loans.”
The CU program provides an overall risk score on a scale of 1.0 to 5.0 on appraisal forms 1004 and 1073 with risk flags to identify contributing factors. The risk score along with messages that highlight specific parts of the appraisal that require closer attention will be returned on the UCDP Submission Summary Reports.
Appraisers would like for the GSE’s to find a way for them to have access to this data and analysis on the front end of the appraisal process, but at this time it does not appear appraisers will have access to any information until it is provided by the lender or the lender’s AMC.
Valuation Management Group has always addressed warnings for our clients as we upload to the GSE’s UCDP on their behalf. Our appraisal management software will be ready for the January 26, 2015 release of Collateral Underwriter. As we find out more information, we will share it to ensure our clients are prepared for the changes.
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.