New REO History Feedback Message Now AvailableMay 26, 2005
A new feedback message in Loan Prospector identifies subject properties that have been in an investor real estate-owned (REO) portfolio. This information, gives you another control to ensure that the valuation you submit to Loan Prospector is accurate and supported.
If the property has been in an REO portfolio in the past 24 months, you’ll receive the following message in the Collateral, Waivers and Warranties section of the Loan Prospector Feedback Certificate:
“Recent REO activity may have impacted the valuation of the subject property. Review appraisal carefully to ensure current value is accurate and supported.”
If you receive this message, make sure you review the appraisal carefully to ensure that the value is accurate and that the comparables used in the appraisal support the value.
The REO History message is a supplemental resource for identifying the accurate value of the subject property. If you do not receive a message, it does not necessarily mean that the subject property has not been an REO property. As always, you should continue to follow your normal loan review process to ensure the property valuation you submit to Loan Prospector is accurate.
For More Information:
What is Real Estate-Owned Property?
REO is property acquired through foreclosure or deed-in-lieu of foreclosure. The REO referenced in the message is property acquired by a secondary market investor for the investor’s REO portfolio and is available for sale.