Comparable Sales Message

In this example the appraiser-provided comparables are ranked significantly lower than alternatives identified by the Collateral Underwriter (CU) model, causing the comparable selection message, 797, to be issued. This message states, "The appraiser-provided comparables are materially different than the model-selected comparables.

For additional context and to find more information on the alternative comps identified by the CU model, consider the following actions:

1. From the Overview page select the Comparables tab.
2. Once the Comparables page opens, use the map to locate the subject which is marked with an "S" and expand the map.
   
3. Locate the appraiser-provided comparables on the map marked by orange house icons.
   
4. Locate the CU model-selected comparables on the map marked by the blue houses. Notice that there are a number of CU model-selected comparables (the blue icons) in the immediate vicinity of the subject property.
   
5. Use the Comparables table below the map to compare the rankings of the appraiser-provided comparables to the CU model-selected comparables. In this example, CU found many other comparable sales that were ranked higher than the appraiser-provided comparables, meaning the model found alternatives that required fewer adjustments than the appraiser comparables. Many of these model comparables have favorable rankings as they are similar to the subject in terms of physical characteristics, and are closer in proximity than the appraiser-provided comparables.
   
6. Use the chart below the map to locate the Amount column. These are the actual sale prices. In this example, the predominance of the sale prices are below the $575,000 appraised value of the subject property (as are the model-adjusted sale prices in the "Mdl Adjst" column).
   

Things to Consider

In conclusion, here are a few things to consider based on this information from the CU web-based application.

It's not Fannie Mae's expectation that the lender ask the appraiser to address all of the model-selected comparables provided sales. In a case like this example where there are many alternative sales, the lender may want to focus on a small subset of sales which are the most representative of the subject.

Lenders should carefully review the CU web application and appraisal report to see if there were any characteristics of the neighborhood or features of the subject (such as pools, accessory units, or outbuildings) not factored by CU that could have impacted the appraiser’s comparables selection. CU’s aerial photos in the web application can help with this. The appraisal report should also be carefully reviewed for additional context or notes provided by the appraiser.

Before contacting the appraiser, the lender might consider whether the model-selected comparables present persuasive evidence for a different value conclusion. If so, then the lender may want to ask the appraiser to consider whether these sales should have been included in the appraisal report and if they impact the original value conclusion.

If the appraisal report is revised, it should be resubmitted to Uniform Collateral Data Portal (UCDP). All resubmissions are re-evaluated by CU which could result in a lower risk score. Please note there is no limit on the number of appraisal submissions to UCDP, and Fannie Mae only considers the most recent appraisal submission for post-acquisition review.