Brief Q&A on the 1004mc with Fannie

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by George Hatch, Mar 9, 2009.

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  1. George Hatch

    George Hatch Elite Member

    18
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    From an email I got today from Ross Acheson:

     
  2. timd354

    timd354 Senior Member

    14
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    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.
     
    Last edited: Mar 10, 2009
  3. Jon Putnam

    Jon Putnam New Member

    0
    Jul 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    That's better!

    The blue-type clears things up a lot.
     
  4. Randolph Kinney

    Randolph Kinney Elite Member

    14
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I don't remember, which does your spreadsheet use, CDOM / Orig LP or DOM / Current LP?
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member

    62
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Too true...true blue or not
     
  6. George Hatch

    George Hatch Elite Member

    18
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    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.
     
  7. George Hatch

    George Hatch Elite Member

    18
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    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.
     
  8. Randolph Kinney

    Randolph Kinney Elite Member

    14
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    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.
     
  9. George Hatch

    George Hatch Elite Member

    18
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    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.
     
  10. Randolph Kinney

    Randolph Kinney Elite Member

    14
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    My bold.

    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? :flowers:
     
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