The new Collateral Underwriter program from Fannie Mae could potentially cause home sale closings to cost more money and move at a slower pace according to appraisers, Housing Wire reports.
The program may also cause deals to fall through if appraised values for a property are lower than what the participating parties previously agreed to in a contract. Beginning Jan. 26, mortgage lenders will have access to proprietary home valuation databases in order to look at the accuracy or and risks posed by a home that were submitted by appraisers. Additionally, the program can highlight potential errors made by an appraiser while also providing up to 20 alternative comps for a property.
