Fannie Mae initially launched its proprietary appraisal messages in the Uniform Collateral Data Portal (UCDP) back in January of 2014 to both assist lenders in detecting data inconsistencies and to improve the overall quality of appraisal data. Ever since this initial launch, the Government Sponsored Enterprise (GSE) has planned to implement additional changes to these messages to provide even more information to lenders and to help them identify potential defects during the appraisal review process.
Retirement of Fannie Mae Proprietary Appraisal Messages:
On December 13th, 2014, numerous Fannie Mae proprietary appraisal messages will be retired in order to focus lenders’ attention on eligibility and compliance messages, and to better align the UCDP with current appraisal policies. The 44 messages that will remain in the UCDP will relate to policy and property eligibility, and the UCDP User Guide for Fannie Mae Messaging will be updated to reflect this change.
Modified Severity Levels for 21 Proprietary Appraisal Messages:
On January 26th, 2015, the severity level for 21 Fannie Mae proprietary appraisal messages that relate to eligibility violations will be modified. The severity level will be changed from a warning message that is automatically overridden, to a hard stop that will require corrective action from the lender (either a manual override or the submission of a corrected appraisal) to obtain a “Successful” submission in the UCDP. The failure rate for these 21 messages has been small, but it is still very important for both lenders and vendors to complete the appropriate testing and business process enhancements so that they can manually override the messages, if necessary.
New Collateral Underwriter Risk Score, Flags, and Messages:
Also on January 26th, 2015, Fannie Mae will be introducing an appraisal risk score, flags, and new messages in the UCDP from its new Collateral Underwriter™ application. Collateral Underwriter is Fannie’s new proprietary appraisal risk assessment tool, which is designed to perform automated risk assessments of appraisal submitted to the GSE via the UCDP. It is important to note that the Collateral Underwriter risk score, risk flags, and messages will not affect an appraisal’s UCDP submission status. These are simply warnings that are intended to alert users of potential issues, and do not need to be “cleared”.
For more information on these above changes and to see the full lists of both the 21 proprietary appraisal messages that will be modified and the new Collateral Underwriter appraisal messages that will be added, please click here.
Fannie Mae – fanniemae.com