In April of 2013, the CFPB published a small entity guide to Ability to Repay (ATR)/Qualified Mortgage (QM) that contains useful information for any entity that may be required to comply. The guide is filled with detailed information about the rules, and is a valuable desk reference for those looking for the mandatory detail, without the bulk associated with both the rule and the official staff interpretations.
Appraiser Independence Requirements
Fannie Mae Appraiser Independence Requirements – FAQ
Freddie Mac Appraiser Independence Requirements – FAQ
HUD Clips – Mortgagee Letters
Fannie Mae UCDP/UAD Registration
Freddie Mac UCDP Integration
Automated Valuation Models
Automated Valuation Models (AVM’s) generate values based on analysis of comparable sales, market trends and public records data. They typically return a value range for the subject, as well as the sales prices and location of recent sales. The primary advantage of an AVM is speed and efficiency. However, AVM’s do not take into account the condition of the subject or recent sales as well as external factors. In addition, AVM’s rely on public record sources, which are frequently outdated and inaccurate. Even with these limitations, AVM’s can be a valuable tool for loan originators when pre-qualifying prospective borrowers.
Real Estate Listing Sites
Real Estate listing sites prove to be a valuable tool when used in conjunction with public tax assessment data. Real Estate listing sites utilize multiple listing service (MLS) databases of current Real Estate sales. The amount of information provided varies. Some sites can offer national or regional information.
Viewing what similar properties in a subject’s market area are listing for may assist in determining a value range for a prospective borrowers’ home. This is done by comparing known data about the subject obtained from the Borrower and Public Records, complied with data regarding comparable listings acquired from one of the public sites below. The tools offered can help you determine an accurate value range.
Another factor to consider is if a property has been on the market for a long period of time. This can translate that it’s overpriced, or there may be other adverse factors to consider. Finally, it should be noted, that Real Estate listing sites reflect a property’s current listing price. Often, There can be a difference between what a property lists for and what it ultimately sells for.
Public Record and Assessment Sites
Utilizing tax assessment amounts can also be helpful. Similar properties may have widely different tax assessments. This can be a sign that there are some major differences between the properties which may not be immediately apparent.