Collateral Underwriting: Will It Affect Your Home Sale or Purchase in 2015?

Collateral Underwriting: Will It Affect Your Home Sale or Purchase in 2015?

Collateral Underwriter is Fannie Mae’s (and Freddie MAC) new proprietary ‘risk management’ software tool they are releasing to lenders and their business partners, Appraisal Management Companies (AMCs), on January 26, 2015. Fannie Mae claims it is NOT an AVM (Automated Valuation Model) because it does not produce a proscribed value (like other mostly inaccurate online valuation tools do).

The bottom line is that this new program could hold prices down... or even bring them down.  Plus, buyers may get stuck footing the bill for the extra work the appraiser has to do. :-(


Sources:
http://turnersappraisals.com/fannie-mae-to-pick-lowest-risk-comparables-for-appraisers/
Video:  http://thenationalrealestatepost.com/appraisal-time-bomb-coming-in-january-2015/