Collateral Underwriter (CU) is the latest automated tool from Fannie Mae designed to assess appraisal risk. Rolled out on January 26, 2015, CU gives lenders access to Fannie Mae’s appraisal analytics, improving transparency and their ability to manage risk.
What Information Is Available To Lenders?
Additional data that lenders can now review during the underwriting process include:
- A risk score, flags and messaging that will identify issues with quality, overvaluation, property eligibility and compliance
- Access to Fannie Mae’s comparable sales data, market trends, public records and aerial mapping
Collateral Underwriter’s Impact
As lenders update their due diligence process with CU’s data, the industry may see a spike in appraisal revision requests and a slow-down to the appraisal and underwriting process.
How Pro Teck Is Adapting For Our Lender Clients
Pro Teck is developing client-specific plans based on how each is implementing CU. Our goal is to proactively work with our Lender Clients to provide appraisal review training and standardized workflow. This will ensure that expectations and production processes are aligned. CU will undoubtedly affect lenders, AMCs and appraisers. By working together, we can maximize the benefits of CU while making sure potential inefficiencies and delays are avoided.