What does a collateral underwriter do?

❖ The purpose of Collateral Underwriter is to identify appraisals with heightened risk of property eligibility or policy compliance violations, overvaluation, and appraisal quality issues.

What is a collateral underwriter risk score?

CU provides a numerical risk score from 1.0 to 5.0, with 1 indicating lower risk and 5 indicating higher risk. Risk flags and messages identify risk factors and specific aspects of the appraisal that may require further attention.

When did collateral underwriter start?

Collateral Underwriter™ (CU™) is a proprietary appraisal risk assessment application developed by Fannie Mae to support proactive management of appraisal quality. CU is the latest addition to Fannie Mae’s suite of risk management tools for lenders, and will be available to them in January 2015.

How do you do underwriting?

What Are the Steps of the Mortgage Underwriting Process?

1. Step 1: Apply for the mortgage.
2. Step 2: Receive the loan estimate from your lender.
3. Step 3: Get your loan processed.
4. Step 4: Wait for your mortgage to be approved, suspended or denied.
5. Step 5: Clear any loan contingencies.
6. Step 6: Close on your house.

How much does a collateral underwriter make?

Collateral Underwriter Salary

What is an SSR score?

Conventional Appraisals Here the appraisal report is given a rating called a Submission Summary Report (SSR). The SSR score is what prompts appraisal reviews. The SSR score ranges from 1.0 to 5.0. On very, very rare occasions, an appraisal with a score of 5.0 may warrant a second appraisal.

What happens after underwriting is approved?

Once your loan goes through underwriting, you’ll either receive final approval and be clear to close, be required to provide more information (this is referred to as “decision pending”), or your loan application may be denied.

Can underwriter change appraised value?

The underwriter must review the appraisal and make a case to the FHA for why value is supported despite these factors. However, if the property doesn’t sell within a certain timeframe, the process changes to an appraisal-based claim, and the lender is only reimbursed at the new appraised value.

What’s next after underwriting approval?

The Underwriter issues the Clear To Close (CTC) once all the conditions meet the guidelines. The Closing Department then sends the title company the “loan instructions” so they can prepare the final Closing Disclosure (CD). The final Closing Disclosure (CD) will provide the exact amount of money due at closing.

What should you not do during underwriting?

Tip #1: Don’t Apply For Any New Credit Lines During Underwriting. Any major financial changes and spending can cause problems during the underwriting process. New lines of credit or loans could interrupt this process. Also, avoid making any purchases that could decrease your assets.

Will underwriter call my employer?

An underwriter or a loan processor calls your employer to confirm the information you provide on the Uniform Residential Loan Application. Alternatively, the lender might confirm this information with your employer via fax or mail.

What do you need to know about collateral underwriter?

Collateral Underwriter ® (CU ® ) is a web-based application provided at no charge to help lenders manage collateral risk as part of their underwriting and quality control processes. Find a comprehensive list of resources including job aids, frequently asked questions, online learning, and more.

Where to find Fannie Mae collateral underwriter Learning Center?

Find a comprehensive list of resources including job aids, frequently asked questions, online learning, and more. Have questions? Get answers to your policy and guide questions, straight from the source. Not a customer?

What should I Ask my underwriter during underwriting?

During underwriting, your lender may contact you and request additional financial documents, bank statements or other proof of income or assets. Respond to these requests as quickly as you can – your underwriter can’t proceed or approve your loan without them. Tip #3: Be Upfront And Honest About Your Finances

What makes up the underwriting process for a mortgage?

What Makes Up The Underwriting Process? 1 Income. Your underwriter needs to know that you have enough income to cover your mortgage payments every month. 2 Appraisal. Appraisals are almost always required when you purchase a home. 3 Credit. An underwriter also evaluates your credit score. 4 Asset Information.