Fannie says that typically there are around 7 UAD records per property. However, most of them must be from appraisers who used it as a comp. Why should we be compared with appraisers who used the property as a comp?
I want access to CU property data from appraisers who did an appraisal on the subject property, not from appraisers who used it as a comp. I want CU to use this data to compare my appraisal data with “peers”. Comp data is not very reliable as it usually comes from MLS and public records. Fannie says that MLS and public records are not as reliable as data from the appraiser who appraised the property for the sale.
Maybe the appraiser had seen the interior of the comp recently, but this is very unlikely. Also, I go on the MLS tour/caravan almost ever week, but I don’t spend a lot of time at each open house. Well..I do spend more time if there is good food ;> MLS photos are subject to interpretation as they are done for sales purposes. I make brief notes on the flyers and file them in binders, going back to 1990.
MORE FRAUD AT FANNIE MAE?
Yes, we’ll see how draconian the CU system may become. We only hope most underwriters and lenders will tend to ignore it. After all it’s “voluntary”. Throwing down yet more rules or another “system” will not insure reliable appraisal reports. It will however insure the technocrats at Fannie Mae will have justification for their jobs. After the well publicized fraud (you can google “fraud at Fannie Mae”) they still have credibility problems.
In the meantime, we hope CU will not gain widespread use. Because if it does, it won’t mean “better” appraisals, but it will mean more unnecessary time and work for the hapless appraisers.
And forget about any corresponding fee increases. The AMC’s will fight it and turn even more to the low ball scab appraisers to do their work.
Edd you are right on the money again. Just because I like green doesn’t mean other appraisers like green. SNL could really do a number on this one.
Fannie has apparently decided that every appraisal comment regarding a specific residential property must be conform to what other appraisers have said and that appraisers may not have access to what Fannie has automatically decided the appraisal should include in order to be credible.
The underwriter’s opinion of appraisal report credibility is now going to be measured by its compliance with Fannie’s automated review of its data. But, Fannie also says the client should not hold up the transaction by requiring the appraiser to conform the report to the data.
Is this supposed to be a joke? It sounds like a skit from SNL.