Concerns about changes to the appraisal process in Fannie Mae transactions are causing the National Association of REALTORS® to closely monitor the situation and seek feedback from members this month.
In an email to state and local association members this week, the NAR Governmental Affairs Division stated that REALTORS® voiced concerns in December to state and local associations. Their concerns were triggered by a video email titled “Appraisal Time Bomb,” that discusses the roll-out of a new appraisal tool for lenders by Fannie Mae. The tool is named Collateral Underwriter.
NAR Government Affairs Communications Director John DiBiase says members who have viewed the video are concerned that Collateral Underwriter will add time to the appraisal process and may encourage lower value appraisals. However, he says the video is not accurate.
DiBiase states that NAR:
- discussed Collateral Underwriter via conference call in November;
- continues to discuss Collateral Underwriter through its Real Property Valuation Committee and the Conventional Financing and Policy Committee; and
- asked Fannie Mae to update its FAQs to address appraiser questions.
DiBiase recommends members visit REALTOR.org for updates on Collateral Underwriter’s implementation. REALTORS® can direct questions or concerns about the subject to Sarah C. Young, NAR’s Policy Representative for Appraisal Issues via email.