Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by atomictfw, Aug 26, 2008.
Urban: BB guns OK
Suburban: 22's OK
Rural: Shoot 'em if you got 'em.
Oftentimes, residential subdivisions are developed just outside the limits of a city. As time goes on, the residents begin to need and ask for services offered by the City. The City, seeking more revenue, wants to annex the area, does so.
Voila! the homes are now inside the limits of a city. Is the area now "urban" in the ordinary meaning of the word?
Try looking up a definition of urban and suburban in Wikipedia. See what it says, and quote it, if you like the definition.
And by the way, all municipal corporations have city limits, but are they all "Cities"? The smaller ones are often referred to as "Towns".
If a politician says he grew up in a small town (that had a corporate charter from the State) was he lying?
we have the US Census definitions and are trying to confirm the subject is suburban. the client contends that there is a Fannie Mae Definition... we cant find any fannie mea definition for urban/sub/rural, etc... the subject has a city mailing address but a good portion "city" has what we consider an "suburban" neighborhood. strrets with no paint, no streetlights, mailboxes on the street (not on the house), no sidewalks, etc...
my office has cranked out a thousand reports for this neighborhood and several for this very bank written the same way and this one is stuck in the underwriters teeth. (godbless the united states of appraisal port) with the US Census definition on 1k population per square mile we are on the button. if we skew the "square mile" slightly toward downtown its over 1k if we move out a bit it is under 1k.
we are looking to support our statement that the subject is suburban. also, all the comps are within a mile and 2 of 5 comps are under 6 months, the remaining 3 are within the year with low adjustments and nice bracketing and matching all around. the value is a whopping $117k. we are really scratching our heads on this one.
Again, if the Subject is located in a "suburb", a "suburb" of what city?
Fannie Mae definition post #3. Fight the power.
Snowplows take out mailboxes in my neighborhood with regularity.
Welcome to nowhere, downtown, Urban
nowheres city limits, Suburban
You passed nowhere, Rural
Not fannie or freddie but this works in FLA.
Is the lender looking at your street map, if so zoom out and replace, if the streets are congested, Urban, do you have many streets, Suburban, If you have a couple of lines on the map and most are section, township, and range lines Pick Rural.
seems to work down here.
Ask the lender to provide you with a written definition they are using to define the area. Be sure to ask for chapter/verse so you can look it up.
This probably has more to do with the particular loan program and it's available interest rate (that was probably was pre-quoted to the borrower) than the actual location.
In effect, you are being asked to appraise a property a certain way by someone who has a financial interest in the loan, i.e., the commission earned on the mortgage loan. That's a violation of USPAP.
Perhaps a conversation with the loan officer's superior would be appropriate if you continue to be pushed.
I follow your UW's logic. "adjacent to the city" suggests to me that it is outside the city limits. I would just change it. It doesn't matter. Quote the above in the report and go on. Not a windmill I want to joist with.