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CU: Slaying the Dragon!

Slaying the CU Dragon!

Slaying the CU Dragon!

 

This past week has been fairly interesting on the CU front. It looks like Fannie Mae got our message! They issued a Collateral Underwriter FAQ (frequently asked questions) dated February 2015. In it are several noteworthy items.

Fannie Mae has updated the description and purpose of CU to make it clear that is only a support tool, not a primary appraisal review tool:CU4
Fannie Mae now acknowledges that lenders need training and are proactively reaching out:
CU5
They have provided clear usage guidelines:

CU6

Fannie Mae makes it clear that the lenders are responsible for human due diligence:
CU7

So what does this mean for Realtors or Homeowners?

This is definitely good news! There has already been a dramatic decrease in the amount of deal-killing busy work generated by automated CU flags/messages that were being automatically passed along to the appraiser. I have seen the results of this FAQ first hand, with at least ten lender appraisals delivered since the FAQ was published and not one CU message to respond to!  This means that appraisers are again free to do their job properly, without undue influence. Will there still be questions based on CU generated flag? Sure! But they should be few and far between and serve as a constructive basis for a discussion about unusual or atypical properties (aka: outliers). It may also serve to weed out a few ‘bad apples’ in the appraiser ranks.

A big THANK YOU to the following for getting the word out and helping to Slay the CU Dragon!

Turner’s Appraisal Services helps people make informed property valuation decisions by providing easy to understand yet comprehensive real estate appraisal reports. I am IRS Qualified and a California State Certified Real Estate Appraiser with local expertise in the Los Angeles neighborhoods. To discuss Los Angeles Area property values please feel free to call me anytime.

Turner’s Appraisal Services
Los Angeles Best Home Appraiser
Los Angeles, CA
Phone: (818) 384-6869

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6 Responses to CU: Slaying the Dragon!

  1. Thanks for the article, Mike. I appreciate the link too.

  2. Good post and great news, here is a letter from the director of Fannie Mae (Melvin Watt) in response to a letter from The Network of State Appraiser Organizations

    https://icapweb.files.wordpress.com/2015/02/fhfa-cu-letter-response.pdf
    http://icapweb.com/uploads/Network%20ltr%20FHFA%201-1-2015_1420947515.pdf

  3. Don't hold your breath.... says:

    This is a welcomed relief but don’t hold your breath. The Fannie Mae roll out of CU has been much like the Obamacare roll out. In my opinion this is only a short reprieve until they get the lenders trained in review. Like anything else the govt is involved in it will continue to churn and grind forward devouring all in it’s path. Once they get the lenders reviewers trained up they will simply introduce phase two and make it a requirement. I’m wondering if we have 10 years left in the business. I’m 48 and standing at the crossroads. Do I bail out of the business I’ve worked so hard at while I’m still relatively young enough to land a decent job with any luck or do I ride this pony into the ground and pray it limps me into retirement? That is the question of the day.

    • admin says:

      For all the complaining we do it still is a pretty good living if you know how to work the angles. However, I did a mid-life career change at about your age (45) because the segment of the technology industry I was in was no longer profitable or interesting to me. It is challenging to switch careers and you do need to do your homework to find a career that is both profitable and interesting but I can attest that it does not take a rocket scientist to accomplish it. I am glad I made the switch, it has been an interesting ride since I started as an appraiser (2003). http://en.wikipedia.org/wiki/May_you_live_in_interesting_times

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