Collateral Underwriter (CU)
Fannie Mae's automated appraisal risk assessment tool that scores appraisals on a scale of 1.0 to 5.0 based on comparable selection, adjustment accuracy, and other quality factors. Higher scores indicate greater risk.
Collateral Underwriter analyzes every appraisal submitted through UCDP, comparing the appraiser's comparable selections and adjustments against its own analysis of the market data. CU flags potential issues such as unusual comparable selections, large unexplained adjustments, value conclusions inconsistent with market trends, and data discrepancies. Scores of 2.5 or above typically trigger lender review. CU has significantly impacted appraisal practice by encouraging data-driven, well-supported comparable selections.
Related Terms
Uniform Collateral Data Portal (UCDP)
UCDPA web-based portal operated by Fannie Mae and Freddie Mac where appraisal reports are electronically submitted and checked for UAD compliance, data quality, and potential red flags before delivery to lenders..
Fannie Mae (Federal National Mortgage Association)
FNMAA government-sponsored enterprise (GSE) that purchases and securitizes residential mortgages, setting appraisal standards and form requirements that apply to the majority of conventional mortgage loans in the United States..
Uniform Appraisal Dataset (UAD)
UADA standardized data specification developed by Fannie Mae and Freddie Mac that defines how appraisal data fields must be completed, ensuring consistency and enabling automated analysis of appraisal reports..
Comparable Sale
A recently sold property that is similar to the subject property in terms of location, size, condition, and features, used as evidence to support the appraiser's opinion of value in the sales comparison approach..
Adjustment
A dollar or percentage modification applied to a comparable sale's price to account for differences between the comparable and the subject property.
More in UAD & GSE Standards
View allUAD Condition Ratings (C1–C6)
A standardized six-level scale for rating the physical condition of a property's improvements, ranging from C1 (new or recently constructed) to C6 (in need of substantial repairs and rehabilitation)..
UAD Quality Ratings (Q1–Q6)
Q1-Q6A standardized six-level scale for rating the quality of a property's construction, ranging from Q1 (highest quality, custom-built luxury) to Q6 (basic or substandard quality construction)..
Electronic Appraisal Delivery (EAD)
EADFreddie Mac's portal for electronic submission and quality review of appraisal reports.
MISMO (Mortgage Industry Standards Maintenance Organization)
MISMOThe standards body that develops and maintains the XML data formats used for electronic exchange of mortgage industry data, including appraisal reports.