California Realtors and Home Lenders: How will CU affect your home income sales in 2015?
“CU” is Fannie Mae’s in house tool for examining credit risk. FNMA is rolling out CU to lenders and indirectly, to the AMC partners affective January 26, 2015. The program is designed to empower lenders to address potential appraisal issues prior to loan approval and funding.
Here are some bullet points of how it works:
In a nutshell:
CU will now supply “up to 20 comparables” that are “ranked by risk” to the lender based upon FNMA’s proprietary algorithms. They will include the appraiser’s comparables. CU will break down market areas by what the US Government calls “Census Block Groups.”
What this means to you the California Realtor and Lender is that when you do your CMA or appraisal CU may not necessarily use your “closest and best” comparables but will use up to 20 of the US Government “Census Block Tract” comparables which can create doubt in your or your appraiser’s valuation of the property.
FNMA will not provide the value for the property but may rather “red flag” or provide a risk assessment to the property as a Red Flag to the appraisal.
Any FNMA eligible property will need to have a CU provided prior to funding even after your appraisal has been approved by the lender. This may cause additional delays to your funding.
Freddie Mac FHLMC is likely to follow suit.
For more information please go to: https://fanniemae.com/singlefamily/collateral-underwriter.
Your Property ID Title Company Professional can provide you with additional information!
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