PRINCETON CONFERENCE Residential Appraisal Best Practices FROM THE - - PDF document

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5/15/2019 Program Overview 2 Program Overview What tools are available to the Bank Review Appraiser? a Brief Look Inside Collateral Underwriter and Loan Collateral Advisor PRINCETON CONFERENCE Residential Appraisal Best Practices

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PRINCETON CONFERENCE

FROM THE REVIEW APPRAISER’S DESK: A LOOK INSIDE COLLATERAL UNDERWRITER AND LOAN COLLATERAL ADVISOR

April 5, 2019

Program Overview

 Program Overview  What tools are available to the Bank Review Appraiser?  a Brief Look Inside Collateral Underwriter and Loan

Collateral Advisor

 Residential Appraisal Best Practices  Program Purpose  Less Addendum Requests (Revisions, Appeals)

Disclaimer

 These opinions shared are my personal opinions and

bservations; they may not the opinion of Columbia

Bank.

 While a good faith effort has been made to ensure

the reliability of the presentation content, Selling and Servicing Guides, USPAP , and other noted materials are the official statements of the publishing entities. In the event of discrepancies between the information in this presentation , the source documents control.

Available Resources

 Interagency Appraisal and Evaluation Guidelines  ALLREGS  USPAP

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1. Interagency Appraisal and

Evaluation Guidelines (12/2/2010)

 These Guidelines provide federally regulated

institutions and examiners clarification on the Agencies’ expectations for prudent appraisal and evaluation policies, procedures, and practices.

2. ALLREGS

 Chapter 5601: Property Eligibility and Appraisal

Requirements

 This chapter details Fannie and Freddie Mac’s

requirements for determining if the collateral is acceptable for the Mortgage transaction.

 An excellent resource for the (Review) Appraiser.  Why are they sending me this addendum request?

AllRegs – The Guide freddiemac.com/singlefamily/

The Guide Subscription

AllREGS – Chapter 5601: Property Eligibility & Appraisal Requirements

Bulletins ALLREGS

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5/15/2019 3 5601.3: General Appraisal Requirements (09/14/17) P. 5601-8

 Freddie Mac requires Sellers to obtain appraisals in

a manner consistent with the Appraiser Independence Requirements.

 Freddie Mac does not require the use of appraisal

management companies or any other third-party vendor to order appraisals.

 The Appraiser Independence Requirements allow

the use of staff (or in-house) appraisers and independent fee appraisers.

3. USPAP S.R.3-3(a)(iii)

The Work under Review

 5 Characteristics of the appraisal development and

reporting process (CAARR):

 Completeness  Accuracy  Adequacy  Relevance  Reasonableness

The Review Process

Acronyms –Freddie & Fannie

 GSEs – Government-Sponsored Entities  CU – Collateral Underwriter (Fannie Mae)  LCA – Loan Collateral Advisor (Freddie Mac)  UCDP – Uniform Collateral Data Portal  SSR – Submission Summary Report  HVE – Home Value Explorer (AVM)  LCAR-Loan Collateral Advisor Report (Freddie Mac)

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Risk Management Tools

 CU - Collateral Underwriter – Fannie Mae  LCA - Loan Collateral Advisor – Freddie Mac

Freddie Mac – Loan Collateral Advisor

 What is Loan Collateral Advisor?  It is a web-based tool which is a component of Freddie

Mac’s Loan Advisor Suite.

 It is comparable to Fannie Mae’s Collateral

Underwriter.

 It is an appraisal risk management tool to aid lenders

in managing and remediating appraisal quality issues earlier in the review process and to help determine the level of attention required.

What happens to the Appraisal once it gets to the Bank?

 The Appraisal is uploaded to the UCDP “Portal”  If there are no UAD issues the appraisal will receive

a “Successful” status

 Appraisals successfully uploaded to UCDP receive a

Submission Summary Report (SSR)

 Freddie runs its AVM. Home Value Explorer (HVE)  The LCAR is now available

Let’s see what is in the Loan Collateral Advisor Report (LCAR)

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Loan Collateral Advisor Feedback

 Feedback messages fall into the following

LCAR - Front Page

LCAR – Model Sales Location Map

LCAR – Model Sales 1 thru 5

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LCAR – Model Sales 6 thru 10

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Scatter Plot Illustrates the Ranked Sales

Scatter Plot Top 10 Ranked Sales verse the Five Supplied Comps

NJMLS Comp Search

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