We are getting asked constantly about the consequences of Fannie/Freddie’s new Collateral Underwriting (CU) Tool coming into play on Jan. 26th. It is risk management software that will pull a list of 20 comparable sales and rank them in order of “risk.”
Everyone’s fear is that every transaction will be delayed and appraisers will be saddled with far more work b/c appraisers will have to justify the use of the comps they used relative to the “less risky” comps the CU software pulled. We have done much research, and the fears seem to be overblown.
This is from one of the largest wholesale lenders in the Country: “At the launch, we only see minimal, if any, impact. The key to us is the quality of the appraisals that we are already producing….We are aware of the CU tool and intend to use it within our Appraisal Review process. However, as a standardized escalation we do not intend to have anything in place on Day 1. We will keep everyone informed when we determine that a change to our existing procedures is necessary. Until then, its business as usual.”
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
