| Government Affairs |
Collateral Underwriter (CU) Viral Video Contains Fallacies
NAR has informed all local AORs thatduring the recent holiday break, many in the real estate industry received a video about changes coming to appraisals conducted for Fannie Mae transactions. The video is sent by email and usually contains the subject line: "Appraisal Time Bomb."
Although the video has received much attention, it is not accurate.
The primary concerns NAR is hearing from members are the adding of time to the appraisal process and forcing appraisers to use lower-value, lower-quality comps; a tool that appears to encourage lower-value appraisals. NAR has been working with Fannie Mae on the roll-out of CU closely. This has included holding a conference call with Fannie Mae to discuss CU late last year; actively engaging in policy discussions about CU via NAR's Real Property Valuation, Conventional Financing and Policy Committees and has asked Fannie to update its FAQ's on their website to address appraiser questions.
Visit www.REALTOR®.org for the latest information on the CU implementation. Note: These are the direct links to the sites mentioned in the memo, if the link embedded in the doesn't work copy and paste these links into your web browser:
https://www.fanniemae.com/content/faq/collateral-underwriter-faqs.pdf
