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Declining Market: FM Announcement 7-11

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Julio E. Sune Jr. (FL), Jul 21, 2007.

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  1. Julio E. Sune Jr. (FL)

    Julio E. Sune Jr. (FL) Senior Member

    9
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    http://appraisalnewsonline.typepad.com/0711_FNMA.pdf

    http://appraisalnewsonline.typepad.com/55596_Ann.07-11-FrequentlyAskedQuestions.pdf

    Highlights from Fannie Mae Announcement 07-11:

    "An accurate value for the property securing a mortgage loan is important in all markets, but the value becomes more difficult to evaluate when the subject real estate market is experiencing a decline in property values ("declining market"). Recent trends indicate that certain markets are experiencing a decline in property values. One of the potential problems in a declining market is the overstatement of property values in appraisal reports. This may result in the borrower not having an accurate property valuation, and over-valuation of a property could increase loan losses should the mortgage loan subsequently default."
     
  2. xm72mhd

    xm72mhd Elite Member

    0
    Aug 13, 2005
    Professional Status:
    General Public
    State:
    Florida
    Read this!!!!

    There is a link to an OFHEO site. I looked and at this point it looks like stats, but I'll figure it out. Seems it might be excellent data and definitely something you need to be aware of.
     
  3. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
  4. xm72mhd

    xm72mhd Elite Member

    0
    Aug 13, 2005
    Professional Status:
    General Public
    State:
    Florida
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