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California realtors CU affects home sales in 2015

California Real estate agents, sellers and lenders:  Will the new home sales valuation (CU) affect your business in home sales? We outline the new requirements from Fannie Mae for property value mandates in 2015.

“CU” or collateral underwriter is Fannie Mae’s application for new credit risk variables, how will this affect California home sales in 2015?

 FNMA is pushing forth collateral underwriter to home lenders and indirectly, also to AMC affiliates affective as of Jan 26 in 2015.  The program is designed to allow home mortgage lenders the capacity to find potential appraisal valuation issues before loan approval and financing.

Below are some of the key take away points possibly affecting the California real estate markets?

  • Beginning Jan 2015, Collateral Underwriter the CU risk assessment program will be available to mortgage lenders and real estate agents
  • Collateral underwriter is a proprietary appraisal assessment program that performs a predictive analysis of appraisal valuations.
  • Collateral underwriter (CU)’s main goal is in addressing over evaluations of property prices and set a market standard.
  • CU doesn’t offer a basic estimate of value, but instead looks at the over evaluation algorithm. It does not qualify as an AVM but rather sets a ceiling on the home’s value. Mortgage lending companies will be notified to any possible overvaluation but won’t get the median home value. 

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