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39% of second appraisals differ from earlier ones

ALISO VIEJO, Calif. – Oct. 23, 2015 – A Platinum Data Solutions report for the third quarter of 2015 found that 39 percent of appraisals contained property quality or condition ratings that conflicted with earlier ratings on the same property.
Platinum says these and other appraisal inconsistencies are a primary cause of underwriting delays that result from a number of factors. It says the problem exists with the same appraiser or another appraiser.
Conflicting property condition and quality ratings cause delays that generally range from one day to several days – a problem for lenders dealing with rate locks, deadline-oriented guidelines and federal regulations.
A number of things can cause the second-appraisal problems, Platinum says, from human error to appraiser subjectivity, actual changes in the property, or even appraisal fraud, which has been cited by Fannie Mae and Freddie Mac as the top origination fraud scheme trend in 2014.
“Causes aren’t easy to determine, so they need to be investigated,” says Phil Huff, president and CEO of Platinum Data Solutions. “Doing this after Uniform Collateral Data Portal (UCDP) submission opens lenders up to numerous issues. Costly delays are just one of them.”
According to Fannie Mae, Collateral Underwriter (CU) identifies rating inconsistencies on loans submitted through the UCDP by comparing the appraisal’s data with its own proprietary data, and flags the appraisal for comments or corrections.
Platinum Data says it analyzed over 300,000 appraisals evaluated by its RealView product in the third quarter of 2015. It says that the nation’s top 10 mortgage lenders use RealView, along with 16 of the top 25 largest mortgage lenders in the country.
© 2015 Florida Realtors®
 
Source: Florida Realtors Feed

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