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A request for a second valuation is a request for more evidence about the home’s value. By itself, it is not a loan denial or proof that the appraisal is wrong.
You can have an appraisal that meets your expected value and still have an unfinished valuation condition. The lender may need clarification, an appraisal review or another permitted valuation before it can finish underwriting. The useful question is what remains unresolved, not simply whether the appraisal ‘came in.’
Fannie Mae: how Collateral Underwriter supports human review (new tab)
Understanding the CU score and SSR
Collateral Underwriter, or CU, is Fannie Mae’s automated appraisal-review tool. Its scored results run from 1.0 to 5.0: 1 is the lowest risk and 5 is the highest. A result of 999 means the appraisal was not scored; it is not a risk score above 5.
The Submission Summary Report, or SSR, is part of the lender’s appraisal-submission process. CU feedback helps direct the lender’s review. This is an appraisal-risk score, not your credit score, and it does not measure how well you have managed your money.
Fannie Mae: Collateral Underwriter questions and answers (new tab) · Fannie Mae: Submission Summary Report guide (new tab)
A score above 2.5 is not an automatic denial
No. Fannie Mae says high CU scores do not, by themselves, prevent a lender from delivering a loan to Fannie Mae.
The 2.5 figure matters because Fannie Mae offers eligible loans certain relief from the lender’s responsibility for the appraised value when the CU score is 2.5 or below. Its current guide includes one-unit detached, attached and condominium properties; manufactured homes are excluded from that relief. The lender still has responsibilities for property facts, condition, eligibility and compliance.
That is not a universal rule requiring a second appraisal above 2.5. These Fannie Mae explanations are not universal home equity loan or HELOC rules. For a second mortgage, confirm which scoring tool or valuation condition the lender means and which review its particular program accepts.
Fannie Mae: property-value representation and warranty relief (new tab) · Fannie Mae: high CU scores and lender review (new tab)
What the reviewer checks
A reviewer looks at whether the property information and comparable sales support the conclusion. Useful facts include the home’s size and condition, the comparables’ locations and sale dates, and the reasons for adjustments between different homes. An unusual property deserves a careful explanation, not an automatic assumption that its appraisal is bad.
CU can flag possible overvaluation, undervaluation, appraisal-quality issues or property-eligibility concerns. A higher score does not necessarily mean the home was valued too high. Human review matters because an automated comparison cannot explain every feature of a home or neighborhood.
Fannie Mae: CU risk flags and lender obligations (new tab)
How CDA and BPO reviews differ
These are different tools. The lender must confirm which one is acceptable for the specific loan before anyone orders or pays for it.
| Tool | Who prepares it and what it does |
|---|---|
| Collateral Desktop Analysis (CDA) | Clear Capital’s named appraisal-review product. A state-licensed appraiser evaluates whether the original appraisal is adequately supported. |
| Broker Price Opinion (BPO) | An estimate of value from a real estate sales professional. The lender determines whether it accepts a BPO for this purpose and which form and qualifications it requires. |
Clear Capital: what a CDA reviews (new tab) · CFPB: why different valuations can differ (new tab)
Costs, turnaround and closing dates
There is no single fee or turnaround time that applies to every lender and review type.
Before authorizing the order, get four details in writing: the accepted report, the total fee and who pays it, whether property access is needed, and the expected delivery date. Then confirm when the underwriter expects to review the result. A report arriving is not the same as the condition being cleared.
For a purchase, compare that schedule with your loan contingency and closing dates with your agent. For a refinance or home equity loan, keep the rate-lock expiration in view. Do not order an independent report assuming the lender will accept it; settle the ordering instructions first.
A worked example of a lender’s value tolerance
Hypothetical example: suppose an appraisal is $700,000 and a particular lender permits a secondary value no more than 10% below it. The comparison threshold is $630,000: $700,000 × 90%. This is an illustration of a lender-specific rule, not an industry requirement.
| Secondary value | Result under this assumed rule |
|---|---|
| $655,000 | Within tolerance: about 6.4% below the appraisal. |
| $630,000 | Exactly at the 10% boundary. |
| $615,000 | Outside tolerance: about 12.1% below. Further valuation work would be required under this assumed rule. |
How a lower value can change your borrowing room
Yes, if the lender uses a lower value and the combined loan-to-value limit becomes the constraint. Passing a review tolerance and qualifying for the requested loan amount are separate questions.
For a second illustration, assume a $400,000 first-mortgage balance and a maximum combined loan-to-value ratio, or CLTV, of 80%. At an accepted value of $700,000, the calculation is $700,000 × 80% − $400,000 = $160,000 of potential second-loan principal. If the lender instead uses $630,000, it becomes $630,000 × 80% − $400,000 = $104,000. That is $56,000 less borrowing room.
Those are hypothetical principal amounts before costs, not cash proceeds or an approval. They assume no other liens; credit, income, debts and program limits still matter. A lender does not necessarily adopt the secondary figure as its lending value. Confirm which value it will use and have the loan amount recalculated before making spending commitments.
CFPB: the lender determines which valuation is most reliable (new tab)
Getting copies and correcting appraisal errors
Request the appraisal and any CDA, BPO or other valuation used in your file. For credit secured by a first lien on a dwelling, federal rules require free copies of appraisals and other written valuations developed for the application. A review without its own estimate or opinion of value is excluded from that rule. For a second-lien home equity loan or HELOC, confirm with the lender which reports you can receive and which disclosure rules apply.
CFPB: appraisal and valuation copies, including coverage and exclusions (new tab)
Request a copy and read the property description. Put each concern into a short evidence list: the page or item, what appears wrong, and the document or comparable sale supporting the correction. For example, pair a disputed room count with an appropriate floor plan or permit record rather than simply saying the value should be higher.
Send that information through the lender’s correction or reconsideration-of-value process. Include relevant sales with an explanation of why they are comparable. The aim is a supported conclusion, not pressure to reach the number needed for the loan. A lender’s second review and a borrower’s request to correct an error are related but distinct processes.
Fannie Mae: appraisal deficiencies and reconsideration of value (new tab)
For California agents: preparing a requested BPO
Confirm the lender’s instructions and your brokerage’s requirements before accepting the assignment. Provide the requested property facts, supported comparable sales, condition information and a reasoned value conclusion. Identify limitations instead of filling gaps with assumptions. Do not choose a value just to fit the requested loan.
California law excludes certain price opinions made in the ordinary course of licensed real estate work from its definition of an appraisal, and says those opinions must not be called appraisals. That is not blanket permission to replace any lender-required appraisal with a BPO. Separately, California’s Bureau of Real Estate Appraisers cautions that a licensed appraiser acting as an appraiser must follow appraisal standards even when the requested form is called a BPO.
California DRE: 2026 law book, section 11302(b) (new tab) · California BREA: BPOs and alternative valuation reports (new tab)
Get a clear plan before paying for another report
Separate this into two jobs: resolve the valuation question, then confirm the loan still fits your goal. A low-cost report is not a bargain if it is the wrong report, and an acceptable review does not automatically preserve the loan amount you expected.
Start with one clear request: ‘Please confirm the remaining valuation condition, the report you will accept, the total cost, the expected review date, and which value will be used for my loan.’ That gives you and your agent a practical plan instead of a score to worry about.