According to the source post: HousingWire.com "New GSE appraisal database to tighten scrutiny on mortgage lenders" -
Appraisers began submitting electronic property data for mortgages sold to Fannie Mae and Freddie Mac under new guidelines that took effect Thursday (9/1/11).
As a result, the government-sponsored enterprises will be building a massive database of every appraisal backing every mortgage sold to them. But the firms, which — combined with the Federal Housing Administration — guarantee or insure 95% of the entire mortgage market, have been silent on what they plan to do with the data.
This Uniform Appraisal Dataset defines the new ways appraisals will be submitted. The GSEs are also developing a Uniform Collateral Data Portal, where the appraisers can make the submission. The UCDP went into voluntary effect June 27 and the use of it will be a requirement starting March 19, 2012.
Rich Andreano, a partner at the financial law firm Patton Boggs told HousingWire those in the industry are wary of this new vault of appraisal information.
"Once you standardize it and automate it, it makes it easier to study a group of loans. Someone can conduct the analysis and say, 'Hey, you know we took a look at all the data and we noticed a trend that is troubling," Andreano said. "They can look at where appraisals are coming, if they're coming from certain areas, which appraisers are getting work, and they can raise questions that suggest further due diligence is needed."
Lenders know that with access to this kind of data, the GSEs will have an easier time enforcing repurchase and warranty claims. The lender can be made aware of a possible appraisal problem before the loan is even closed. If the lender goes ahead and sells the mortgage to Fannie or Freddie anyway, the risk of having to repurchase that mortgage if it slips into nonperforming status skyrockets.
Click here to read the complete article by Jon Prior. Follow him on Twitter @JonPrior
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