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1004 MC "matching" URAR page 1

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by erniesumrall, Sep 19, 2009.

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  1. erniesumrall

    erniesumrall New Member

    0
    Aug 7, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Greetings All,

    I have been proceding with the assumption that the data on page 1 of the URAR should describe the overall (general) market area and that the MC should report on the subject's "submarket," i.e., that pool of properties that are more-or-less considered comparable to the subject. Therefore, the overall market may be stable (declinining, increasing) and the subject's submarket as documented on the MC may be going a different direction? Is the right?? Thanks for the help and feedback.
     
  2. Mike Kennedy

    Mike Kennedy Elite Member

    58
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    the overall market may be stable (declinining, increasing) and the subject's submarket as documented on the MC may be going a different direction? Is the right?? Yes MC & Top of Page 2 reflect "properties which would compete with the subject"; Page One General / Overall (which includes "comparables").
     
  3. Rich Heyn

    Rich Heyn Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    The intent of the 1004MC is to provide support for the appraiser's conclusions regarding market trends and conditions. Consequently, the checkboxes under "One-Unit Housing Trends" on the URAR are submarket specific, as is the 1004MC. Additionally, the "Market Conditions" comment section of the URAR should contain comments specific to the subject submarket. With one possible exception, the remainder of the Neighborhood Section of the URAR pertains to the entire neighborhood, not just the subject submarket.
     
  4. SutnNC

    SutnNC Senior Member

    5
    Nov 5, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    You are correct in your thinking. The issue now or that has been occurring is that UW requests to have the MC match the neighborhood has caused some confusion. I have had some requests for this and have had to, basically, quote the above responses.
    Try checking boxes when there are two or three sales in the past one year and the UW wants one checked!! Braaathuu
     
  5. Tres Kirkland

    Tres Kirkland Junior Member

    0
    Oct 26, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    That is correct page one is for the entire market area. I've been in some area's that are overall declining, but certain subdivisions (or certain price points) have been stable.
     
  6. DWiley

    DWiley Senior Member

    26
    Apr 4, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Not quite. Rich's post has it 100% correct. Part of page 1 is for the whole area, and part is for the submarket. I have confirmed this directly with Fannie Mae.
     
  7. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Rich (or Danny): Under the Market Conditions comment, in the neighborhood section of page one, I think it is a great idea to include comments about the subjects' submarket, in addition to comments about market conditions in the neighborhood as a whole, but exactly where are you getting the idea that the checkboxes on page one under "One-Unit Housing Trends" on the URAR are submarket specific? How is any appraiser to infer that from the way the form is presented?
     
  8. DWiley

    DWiley Senior Member

    26
    Apr 4, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    As I said in my last post, I got that straight from Fannie Mae.
     
  9. Rich Heyn

    Rich Heyn Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Lloyd,

    I agree that a good way to handle the Market Conditions comments section on the URAR is to start big and get smaller. In other words, begin with a discussion that may encompass the general market area, then narrow the focus to the neighborhood and finally to the submarket. Or, I suppose you could start small with the submarket and grow the discussion to reference the neighborhood and then the greater market area. Pyramid or inverted pyramid discussion, appraiser's choice.

    As to how the appraiser is to infer anything from the form, I'm not sure. I'd rather see the appraiser read the communications from Fannie Mae and not have to infer anything. Have you read through announcement 08-30 and the Fannie FAQs at efanniemae.com? I'll see if I can dig up a few appropriate quotes from Fannie's instructions.
     
  10. DWiley

    DWiley Senior Member

    26
    Apr 4, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    I concur. One thing appraisers have to get over, in general, is the "need for speed" mentality. Some things just have to be explained, and simple check boxes often don't cut it.

    I just finished a report Friday where I had to explain that there was an over supply in the general area, but supply and demand were in balance for homes under $200,000. Since the subject was valued at $170,000, the appropriate check box was "In Balance." Had the subject been a $325,000 home, the appropriate check box would have been "Over Supply."
     
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