Fannie Mae integrated Collateral Underwriter with Desktop Underwriter and EarlyCheck in order to help lenders more effectively manage risk and underwrite stronger loans.

Collateral Underwriter is Fannie Mae’s proprietary appraisal analysis application, providing lenders access to analytics as well as underlying appraisal, public records and other data when evaluating the risk on an appraisal.  

In October of last year, Fannie announced lenders could use its proprietary appraisal analysis application, Collateral Underwriter, to analyze loans prior to closing to ensure that the loans conform to Fannie’s standards, which should decrease repurchase risk.

With this integration, Collateral Underwriter risk score, flags and messages for appraisals submitted to Fannie Mae through the Uniform Collateral Data Portal will be available for display in DU and EarlyCheck. 

As a result, it will provide a more holistic view of risk on a loan across multiple applications, enabling lenders to better address potential issues prior to loan delivery. 

“This integration is the next step in our efforts to make it easier to work with Fannie Mae by helping lenders to efficiently manage risk and build strong, profitable businesses,” said Marianne Sullivan, Fannie Mae’s Senior Vice President for Single Family Business Capabilities. “DU, CU and EarlyCheck are foundational tools for a strong housing finance system going forward.”