Fannie Mae CU or Collateral Underwriter can be frustrating to Home Appraisers when their computer models try to second guess Appraiser's judgment.
Now computer models tell Appraisers the comps they should use instead of Appraiser Judgment
For example, this past week, I performed a foreclosure purchase on a home obviously needing some repairs and on the market for a much longer than average 275 days in two (2) REO listings. It sold between $25,000 to $30,000 below market...for a reason. After submitting the report, I received the following revision request: "The appraiser-provided comparables are materially different than the model selected comparables." What this means a computer selected the comparables sales I should have used not even understanding this is a foreclosure, the condition of the home nor the circumstances of how the market (buyers) reacted to this home.
"The condition rating for comp #4 is different than what has been reported by other appraisers. Appraiser to confirm rating is accurately reported."
This is frustrating to me as I've only received 1 Lender FNMA CU question since CU implementation, and it was on this topic. "The condition rating for comp #4 is different than what has been reported by other appraisers. Appraiser to confirm rating is accurately reported."
This is an example of slab granite from bigstockphoto.com (Yes, I purchased this photo)
Comp. #4 sold for $131/sf when other homes of similar size in same subdivision in 2015 sold for $111/sf, $110/sf, $111, $112 and $109/sf in C3 Good condition. So, Comp 4 sold for roughly $20/sf more than the average home in subdivision yet other Appraisers only called it C3 and I called it a C2 based on it selling for $20/sf more along with photos and comments of renovation, extensive new slab granite. Just because other Appraisers didn't take the time to study this sale and couldn't see the obvious differences doesn't mean I was wrong in my C2 rating (sold price per sq. ft, photos, mls remarks and mls history to know the 2015 difference). There's a reason the market pays $20 more per sq. ft. than others in same subdivision and that's generally condition. There were no major amenities to speak of other than an old liner pool not much of any value in a market where pools are rare.
AS NOTED IN THE ADDENDUM, MY UAD INTERPRETATION OF FANNIE MAE C's OR CONDITION RATINGS:
C1 = New Construction; Never before occupied and on a new foundation
C2 = Almost new condition (1 to 5 Years of Age), Or TOTALLY Renovated / Updated
C3 = Good
C4 = Average
C5 = Fair, Needs Repairs To Close Loan, Appraisal Subject To Repairs
C6 = Very Poor, Appraisal Subject To Repairs