WASHINGTON Lenders will be able check their appraisals against Fannie Mae's database starting early next year so they can address any valuation issues before closing the loan, a top executive said Monday.
Andrew Bon Salle, Fannie Mae's executive vice president for single-family underwriting, said access to the government-sponsored enterprises' collateral analytical tool, called Collateral Underwriter, will give lenders more confidence in originating loans.
He added that Fannie is already working with the Federal Housing Finance Agency to provide buyback relief with respect to appraisals.
"Our goal is to provide relief on appraisal representations and warranties in the future, and we will work with FHFA to do so," Bon Salle said Monday in a press release. "We want to be the business partner of choice for lenders by providing the tools and products lenders need. Collateral Underwriter will help lenders build their businesses safely and strongly."
The database will be integrated into Desktop Underwriter so the appraisal check can be part of the underwriting process.
"Using Collateral Underwriter will allow the lender to assess the appraisal and address any issues prior to closing and delivery to Fannie Mae," Fannie said in a press release.