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We should be aware of this change.


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If you go to the Fannie Mae web site you find that while they are implementing this in January, it is not "required".

From their Q&A:

Is use of CU mandatory for Fannie Mae sellers?

Fannie Mae strongly encourages lenders to utilize the CU risk scores, flags, and messages provided upon submission of an appraisal to UCDP, and to access the web-based application for in-depth analysis, but use of CU is not required. Review the available training and other resources for more information about the benefits of the CU feedback

Will Fannie Mae purchase loans that receive high CU risk scores

and/or risk flags?

Yes. High CU risk scores can be considered warnings, but do not preclude lender delivery of the loan to Fannie Mae. It is highly recommended, however, that lenders perform appropriate due diligence on appraisals with high CU risk scores and/or risk flags prior to loan delivery.

Will things change in the future, probably. But it's not the crisis that these two guys purport it to be in January.

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  • 2 weeks later...

I've always thought the appraisal process was a sham. On the homes I've bought the appraisal always come back at $500.00 more than contract. Wonder if that is b/c they have the contract with them. Makes it easy to hit that target number when you know the number.

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MAI is the Master Appraisal Institute...it's one of those acronyms folks put behind their names to signify something or other.

The joke is MAI = Made As Instructed. They work for the bank, not the buyer. It's amazing how many appraisals come in right at the contract price, or slightly over.

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It's time that buyers start vetting their own appraiser. We expect them to research and choose us independent of their RE's referral, why not the rest of the parties in their transaction?

The last time I tried to refi, the Truth in Lending document estimated my appraisal cost between $250 and $2500 with the bank ordering the appraisal. I told them I would secure my own appraisal or they could pay the fee if they did. They hung up on me.

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