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Fannie Mae definitions for urban/suburban

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by atomictfw, Aug 26, 2008.

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  1. atomictfw

    atomictfw New Member

    0
    Aug 26, 2008
    Professional Status:
    Appraiser Trainee
    State:
    Virginia
    i have an underwriter requesting that we mark a subject urban because it is located in a city limit, and he says that the "fannie mae definitions" state that we are required to. :huh: :unsure:

    we contend that our subject is in a suburban neighborhood with cul-de-sacs, un marked pavement, lower population density, 0.3~0.7 acre lots, single family homes only, etc...

    does anyone have these fannie mae "definitions"? we cant find them yet.

    if we tell this underwriter he is wrong we want to back it up with data or "definitions" of course. :new_2gunsfiring_v1:

    thanks a bunch!
     
  2. stefan olafson

    stefan olafson Senior Member

    0
    Apr 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    North Dakota
    Urban - No Cows
    Suburan - Some Cows
    Rural - Lots of Cows

    OR

    Urban - You can't pee outside
    Suburban - You can pee outside at night
    Rural - pee wherever you want
     
  3. Mr Rex

    Mr Rex Elite Member

    114
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    XI, 403.01: Location (06/30/02)
    We will purchase or securitize mortgages that are secured by residential properties in urban, suburban, or rural areas. An “urban” location relates to a city, a “suburban” location relates to the area adjacent to a city, and a “rural” location relates to the country or anything beyond the suburban area.
     
  4. Tom Woolford

    Tom Woolford Elite Member

    27
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I used to have a property of 2.5 acres, in a subdivision of 1 to 10 acre tracts. Horses were allowed, streets were unimproved (we used them as training tracks). It was 5 min. from major shopping, and two hospitals, lots of doctors, drivers license bureau etc, etc, etc. Just because its acreage, has animals etc, does NOT make it rural.
     
  5. leelansford

    leelansford Elite Member

    44
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    You're offering that the Subject is located in a suburb of what city and how far is it from that city?
     
  6. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Tell the underwriter that you do not consider it Urban based on the fact it isn't Urban, and that the Subject isn't Urban, because it's not Urban.
     
  7. RSW

    RSW Elite Member

    25
    Feb 18, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    I like the cows definition!

    I heard that if you can see the smoke from the chimney of a house it is called suburban. Ha!
     
  8. Caterina Platt

    Caterina Platt Senior Member

    0
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Lee's onto a good portion of the argument. There are no true definitions of Urban/Suburban/Rural.

    The town of Belen, for instance. My subject may be an acreage property that falls on the outskirts, but within 'city' limits. The area is mixed improvements, which basically means you've got homes that were built before zoning existed, those after zoning, a non-planned pattern of development - singlewides next to a 2,500 SF semi custom next to a 60 year old 1,000 SF adobe with questionable wiring. No real covenants or subdivisions in many cases. Comparables are not all within a 6 block radius in most cases. Is the property suburban to Belen? Well, yes, but furthermore, the whole darn shooting match is suburban to Albuquerque 35 miles north where the census data states around half of our population commutes for work. There are true subdivisions, and city utlities, don't get me wrong, but the situation you describe tends to be more on the 'outskirt' situation. So what do I do then with the property that's a zero lot line townhome on a 3,400 SF site and city utilities within Belen's limits? I call it urban. The acreage property on the outer edge of town? Suburban. Why? Because I said so and it's my market, dammit. :rof:Actually, I give them a real explanation to back it up, but the real reason is not far off from what I just stated. I tend to pay far less attention to my distanced comparables as a factor, than I do the true surroundings and characteristics.

    The only place I've found true 'definitions' if you will, of Urban/Suburban/Rural are in the census data. I had to use it last year to refute an appraiser who called an area south of Belen 'rural'. Census definitions are based on the population per square mile. Rural, FWIW, was 6 people per square mile. This location was more like 1500 per square mile. Not quite rural, my friend.
     
  9. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    Now Cat - admit it - you're talking about almost all of NM when you reference those situations. :laugh::leeann2:
     
  10. The Nightfly

    The Nightfly Sophomore Member

    4
    Jan 23, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Texas
    I was once told by New Century that the a property couldn't be called rural if you could see your neighbor's mailbox from your driveway. What happened to them again????
     
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