In an announcement dated March 10, 2015, Fannie Mae has indicated that they will be generating an Appraisal Findings Report designed to capture Collateral Underwriter (CU) feedback beginning sometime in April 2015.
As many lenders are now aware, Fannie Mae rolled out its free proprietary CU appraisal risk assessment system in January 2015. Each appraisal that is now submitted through Fannie Mae’s Uniform Collateral Data Portal (UCDP) is assigned an appraisal risk score by CU and any red flags and other related messages are also generated.
In order to assist lenders in managing this feedback, the Appraisal Findings Report will consist of a single file with four major components. They are as follows:
1) Summary – shows the distribution of CU risk scores & frequency of red flags
2) Details – lists the frequency of CU & messages generated
3) Usage – shows the number of submissions to the UCDP and number of corresponding appraisals reviewed and
4) Users – lists the lender’s individual users of CU & the number of appraisals viewed by each person.
Since it is expected that CU will become widely used by Underwriting, Quality Control and Compliance staff as part of their appraisal review responsibilities, lenders should take note of this new report and begin utilizing it when it becomes available in April 2015.
This is yet one more report for a lender’s Compliance Toolbox – and it’s free. Stay compliant my friend.