Freddie Mac’s online tool for assessing valuation risk—Loan Collateral Advisor—will soon include feedback messages to alert users when certain prohibited, subjective or potentially biased words or phrases are included in appraisal reports submitted through the Uniform Collateral Data Portal, the GSE recently announced.
Starting June 29, messages issued through Loan Collateral Advisor will include a warning severity but not prevent a successful submission status in the submission summary report in UCDP. However, beginning in the fourth quarter, some words and phrases will result in a “fatal” message, which will prevent a successful submission status in UCDP and delivery of the loan to Freddie Mac. The GSE is advising lenders to take proactive steps such as enhancing procedures and training to ensure unsuccessful appraisal submissions are addressed and minimize delays in origination turnaround times.
ABA Banking Journal Staff
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