Tampa, FL, January 25, 2015 --(PR.com
)-- The New Year has arrived, and with it, Fannie Mae will soon be turning their new Collateral Underwriter™ (CU™) application live.
For those who may have missed the recent reports; on January 26, Fannie Mae will introduce an appraisal risk score, flags, and new message features in UCDP® from Collateral Underwriter™ (CU™), a proprietary appraisal risk assessment application developed by Fannie Mae to support proactive management of appraisal quality.
CU™ is intended to improve overall quality by making use of a larger database and weighing major metrics within the industry. Additionally, numerous other Fannie Mae proprietary appraisal messages have been scheduled to retire in order to focus lenders’ attention on eligibility and compliance messages to better align with new appraisal policies2.
NAN is Ready for the Change- The release of CU™ is a major change for the appraisal industry. Nationwide Appraisal Network has been proactively working on preparing for this release since it was first reported, and NAN is proud to announce the following changes for appraisers within its network:
NAN's software will now provide new virtual buckets that will be used to gather relevant information including new risk scoring, findings from Fannie Mae and other content that needs to be made more available. It has also been enhanced with a warning and hard stop feature. When relevant parts of the software columns are clicked, they will open a pop-up window and allow for correction requests to be sent in as needed.
“We are ready to release an improved UCDP®1 section in our portal," said Cari Burris, Co-Founder and Director of Operations at NAN. "After discussing our options, we decided that it would be best to place emphasis on the new CU™ risk score, allowing our appraisers to see it more easily when the data is pulled into the system.”
“Our enhanced QC policy will streamline the appraisal process and assist in the identification of any discrepancies within a report, added Joni Pilgrim, Co-Founder and Director of Sales & Business Development. A risk score will now appear on the main screen in addition to other areas and plans are for it to be displayed next to the Successful Submission Report function.
“In addition to the improved CU™, the severity level for 21 Fannie Mae proprietary appraisal messages that relate to eligibility violations will also be modified, Ms. Pilgrim concluded."
As expected with revised software applications, adjustments may be needed once the CU™ scores are actually being sent out. Key personnel at NAN will participate in all UCDP® and CU™ webinar training sessions specific to AMC’s and take every reasonable measure to keep our partners informed of any implementation considerations and updates while systems are being switched over.
Only lenders and approved sellers will have access to the full suite of information, while correspondents will be given some access later in the year. Much of this will be going through the Uniform Collateral Data Portal. However, users who don't meet the admittance criteria will not have access to the web-based application that CU™ is being run on. Some companies may therefore find that people who formerly had access to certain types of information are no longer eligible to access that data.
NAN anticipates further system tweaking will occur as everyone settles in with the new changes, but lenders and appraisers alike will almost certainly be making more use of such information gathering in the years to come.
Moving forward, lenders and appraisers will need to be ready for greater separation in the businesses processes between Fannie Mae and Freddie Mac once the update goes live. Nationwide Appraisal Network is already working on ways of helping our partners get ready to switch business processes as needed.
1 The Uniform Collateral Data Portal® (UCDP®) is a single portal through which lenders electronically submit appraisal reports for conventional mortgages delivered to Fannie Mae or Freddie Mac. Through UCDP, lenders can upload appraisal data and view edits and submission details.
2 For additional details on UCDP and the Fannie Mae proprietary appraisal-messaging and policies visit: UCDP
Note: Some groups - including the Illinois Coalition of Appraisal Professionals - are less than completely satisfied with Collateral Underwriter's method of doing things. This group is unlikely to be the last objecting to some parts of the process, and there is a chance that a legal challenge could require the (temporary or permanent) shutdown of the CU system.
About Nationwide Appraisal Network- NAN is an industry leader in appraisal management, providing a unique approach to appraisal management through customization, innovation, and quality.