Fannie Mae’s New “Black List”
As part of the collection and analysis of appraisal data via the Uniform Collateral Data Portal® (UDCP), Fannie Mae has unveiled a “do not use” appraiser list. According to their Appraiser Quality Monitoring (AQM) FAQs (1/6/14), “Fannie Mae will provide information directly to appraisers whose appraisal reports exhibit a pattern of minor inconsistencies, inaccuracies, or data anomalies. The intent and expectation of communicating these issues to appraisers is for training and educational purposes, and to provide them with an opportunity to improve their work. Future appraisal reports from those appraisers will be monitored to assess improvement.” For issues Fannie deems “egregious,” it says it will contact the appraiser and lender and inform them that “either 100% of the loans submitted with appraisals from the identified appraiser will be reviewed by Fannie Mae in the post-purchase file review process or Fannie Mae will no longer accept loans with appraisals completed by the specific appraiser.” Placement on Fannie’s “do not use” list has the potential to destroy an appraiser’s career, as the list will be regularly updated with all local and national lenders. Appraisers will have an opportunity to file a formal appeal to any decision by Fannie. To read Fannie’s FAQ on this issue, visit WorkingRE.com, click Library, Side Bar Info. For an in depth look at how the AQM system works, what is reported to lenders and what it takes to get an appraiser on the list, see the OREP/Working RE webinar Keeping Off Fannie Mae’s New Appraiser “Black List” click here.