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Fannie/Freddie Guidelines

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Wyoming, Mar 12, 2009.

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  1. Wyoming

    Wyoming Sophomore Member

    0
    Jun 10, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Wyoming
    Hello All. I just had a MB tell me that "all conventional loans now require 2 active listings (per Fannie and Freddie guidelines)." I checked AllReg and didn't find anything new in terms of announcements or anything. I don't mind putting in actives/pendings. However, it is likely just an investor requirement and not F/F.

    Is there any truth to this?

    I hate it when MB's try to BS me and would like to call them on it. Thanks for any help.
     
  2. timd354

    timd354 Elite Member

    108
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    I don't believe that Fannie is requiring that, but many lenders are requiring 2 active listings or pending sales.
     
  3. kevingrehan

    kevingrehan Junior Member

    0
    Feb 20, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Mississippi
    Lender requirement. Nothing from fannie mae or freddie mac. My opinion, listings are useless. I have to use them in 80% of my reports though.
     
  4. ockyappraiser

    ockyappraiser Senior Member

    12
    Sep 26, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Kentucky
    I had the same thing yesterday. Its coming from the "declining market" issue. The broker said that the two listings is being required for any appraisal done in a declining market, and they faxed me a sheet of declining markets by counties from Fannie mae.
     
  5. NC Appraising

    NC Appraising Senior Member

    0
    Apr 28, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Wow. I just finished up one where the last sales were from December, and October. In February, one of the big banks shut down one of it's offices and now there are triple the amount of listings. These listings are about 10-20% below what the closed sales sold for.

    Active, expired, and pending listings are excellent market data; Fannie Mae, and all of the appraisal books that I have ever read agrees. They are also excellent supporting data to tell the reader of the report what the subject is not worth....
     
    Last edited: Mar 13, 2009
  6. Michael Tipton

    Michael Tipton Senior Member

    0
    Sep 25, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    FNMA guidelines require the lender to confirm the appraiser analyzed listing and contract sales in addition to the most appropriate closed sales. Lender requirements for listings/pendings being on a grid meets FNMA's minimum requirement.

    The following are copied from the 2007 FNMA Sellers Guide and 2007 FNMA Announcement 07-11:

    The appraiser’s analysis of a property must take into consideration all factors that affect value. Because we purchase mortgages in all markets, this is particularly important for market areas that are experiencing significant fluctuations in property values (including sub-markets for particular types of housing within the market area). Therefore, lenders must take appropriate steps to ensure that the appraisers they use analyze listings and contract sales as well as closed or settled sales, and use the most recent and similar sales available as part of the sales comparison approach, with particular attention to sales or financing concessions in markets that are experiencing either declining property values, an over-supply of properties, or marketing times over six months. (Also see Section 406, Sales Comparison Approach to Value.)

    http://www.allregs.com/efnma/index....fnma/selling/part-xi/xi-ch-4/xi-403/xi-403.03

    At a minimum, the lender is expected to:

    ...
    Ensure that the appraiser analyzes listings and contract sales, if available, along with the most recent closed or settled sales. If the lender determines that the appraisal does not accurately reflect the current market conditions, the lender is expected to request additional clarification or justification from the appraiser, as necessary, to make an informed decision about the property value.

    http://www.allregs.com/efnma/index....w=0&tv=0&tq=0&tx=/&tp=fnma/annoc/n2007/n07-11
     
  7. NC Appraising

    NC Appraising Senior Member

    0
    Apr 28, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Fannie Mae Selling Guide page 22:

    The sales comparison approach to value is an analysis of comparable sales, contract offerings, and current and expired listings of properties that are the most similar to the subject property.


    and what Mike said. Ditto.
     
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