Under Fannie Mae's Selling Guide, a lender obtains a hybrid property data collection from an insurance inspector, gives it to an appraiser who completes Form 1004 Hybrid, submits the appraisal to UCDP, reviews it, and delivers the loan. Which required lender step was skipped?
Correct Answer
B) Successfully submitting the property data collection to the Fannie Mae Property Data API
When exercising a hybrid appraisal, Fannie Mae requires the lender to obtain a property data collection and successfully submit it to the Fannie Mae Property Data API, provide it to the appraiser, submit the appraisal to UCDP, review it, and deliver the loan; the API submission is missing. Condition and quality ratings are determined by the appraiser, an insurance inspector is an acceptable trained third party, and a CU score of 2.5 or less relates to representation and warranty relief rather than a required step.
Why This Is the Correct Answer
Option B is correct because the first required lender step is to obtain a property data collection and successfully submit it to the Fannie Mae Property Data API. The facts cover providing the data to the appraiser, UCDP submission, review and delivery, but not the API submission.
Why the Other Options Are Wrong
Option A: Having the data collector assign the condition and quality ratings for the report
Option A is wrong because the condition and quality ratings in a hybrid are determined by the appraiser, who relies on the data collected. The data collector is not required to assign them.
Option C: Using an appraiser or appraiser trainee, rather than an inspector, to collect the data
Option C is wrong because an insurance inspector is one of the trained and vetted third parties named as a data collector. The data collection does not need to be performed by an appraiser or appraiser trainee.
Option D: Obtaining a CU risk score of 2.5 or less before delivering the loan to Fannie Mae
Option D is wrong because a CU risk score of 2.5 or less makes eligible loans eligible for enforcement relief of certain representations and warranties. It is not one of the lender's required steps for exercising a hybrid appraisal.
Data to API, appraisal to UCDP
The property data collection goes to the Property Data API; the finished hybrid appraisal goes to UCDP; then the lender reviews and delivers.
How to use: Use this to check whether a described hybrid workflow is complete.
Exam Tip
When a question lists steps a lender took, compare it item by item with the required sequence to find the gap.
Common Mistakes to Avoid
- -Thinking only appraisers may collect hybrid property data
- -Believing the data collector sets condition and quality ratings
- -Treating the CU risk score threshold as a delivery requirement
Concept Deep Dive
Analysis
This question tests the lender's checklist for exercising a hybrid appraisal and who may collect the data. The candidate must compare the facts with each required step and also reject choices that misstate who collects data, who rates condition, and what a CU score does.
Background Knowledge
A hybrid appraisal splits the work between a trained and vetted data collector and an appraiser. The property data collection must comply with the Uniform Property Dataset and be delivered to the Fannie Mae Property Data API, and the appraisal itself goes to UCDP.
Real-World Application
A lender's processor emails an insurance inspector's data collection straight to the appraiser without uploading it to the Property Data API. The quality control reviewer flags the file because the data collection was never successfully submitted.
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