Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by George Hatch, Mar 9, 2009.
From an email I got today from Ross Acheson:
Once again, Fannie demonstrates total cluelessness.
It is apparently much easier to draft and require the use of a form that is useless in most cases and will be misleading in many cases than to require lenders to use competent appraisers who write good reports which contain a properly done market analysis.
The blue-type clears things up a lot.
I don't remember, which does your spreadsheet use, CDOM / Orig LP or DOM / Current LP?
Too true...true blue or not
I set my worksheet up with DOM / Most recent LP; actually, the low side of the LP, so as to avoid problems with range listings.
I know that causes problems with respect to REO listings that are set low to encourage multiple bids, but I figure appraisers are smart enough to note it in their reports if that market segment has those types of sales.
As for whether an underwriter accepts a "too few comparables" argument I suppose that depends on how well an appraiser describes their appraisal problem on Pg1.
Too few comparables also suggests that there may not be a market for the subject or the SCA is not valid because of market inactivity.
Too few comparables for a statistical analysis to be meaningful is a little different than too few comparables for an appraiser to develop an opinion of MV.
That would depend on the confidence interval you define as meaningful.
AVMs are programmed to compute a value based upon a data set and time interval. How meaningful is that?