Starting July 22, Fannie Mae's automated underwriting system will alert lenders if the collateral for a mortgage is located in an area where house prices are declining.In such cases, Fannie's Desktop Underwriter will send a message to lenders that they need to carefully review the appraisal to ensure its accuracy and require additional information from the appraiser, if necessary. Appraisers should describe market trends and the effects it will have on the value of the property, Fannie says in an announcement to its seller/servicers. "It is unacceptable for the appraiser to ignore these issues and not report the factual property value trends and market conditions," Announcement 07-11 says. The government-sponsored enterprise can be found online at http://www.fanniemae.com.
