New Appraisal Tool Frees Lenders From Reps and Warranties

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Posted To: MND NewsWire

Fannie Mae said new updates to its Collateral Underwriter® (CU) and Desktop Underwriter® (DU) should increase the speed and efficiency of lending and give lenders freedom from representations and warranties on property values for many loans. The changes are part of Fannie Mae’s Day 1 Certainty TM initiative. With a qualifying risk score from CU and a recommendation of Approve/Eligible from DU, appraised value can be accepted up front. Also, working with CU, DU will now issue property inspection waivers (PIWs) – an offer to waive the appraisal if other requirements are met. With an exercised PIW offer, lenders receive representation and warranty relief on property value, condition, and marketability. The company said greater certainty and efficiency in the appraisal process will mean…(read more)

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