New market analysis changes.

[TerryRohrer]

From post #13, https://appraisersforum.com/forums/threads/feb-4th-gse-requirements.239365/page-2#post-3456436

This has been in USPAP for a very long time

View attachment 95316

Given that market analysis has been a requirement, there should be no need to buy anything new.
The change is that the report must now contain that analysis.

The diagram included in the announcement was for illustration and discussion of the topic. There is no requirement to include a similar illustration. The requirement is to include the analysis that was done.

 

[Fernando]

Delayed deadline-

25-07: Reminder: Fannie Mae Appraisal Time Adjustment Requirements | PCG

Announcement 25-07: This is a reminder regarding Fannie Mae's appraisal requirements, effective for appraisals dated on or after March 1, 2025.

corr.pennymac.com

I thought all appraisers were doing a thorough analysis.
For Fannie to state clearly what should be done indicates many appraisers weren't doing it right or didn't know what they were doing.

 

[The Bob]

I can't believe there are appraiser's that think this is some new requirement.
How the h*ll were you determining if a market was stable, rising, or declining before?

 

[ZZGAMAZZ]

So why are they saying we have to have this detailed market analysis and use an adjustment for the month the comparable was sold? Is that overkill or do we have to do it that way now? I use Titan Analytics and a custom spreadsheet for my closed sales analysis. However, those don't break down what the increase/decrease is for each month.

IMO the baseline verbiage that references "the month the comparable was sold" is misleading and also incorrect because the contract date rate rather than the sale date is the correct metric...

 

[ZZGAMAZZ]

If MC is used, appraiser needs to be consistent.
MC usually consider 12 month trend.
In main report, I would consider more recent trend but if different and not clear with time trend, reviewers will always assume 12 month trend.

Page 1 Neighborhood Trends is indeed based upon a 12-month analysis as far as I am aware, although IMO more recent sales should be prioritized in the industry formula applied to determine the "predominant" value...

 

[Surf Cat]

I can't believe there are appraiser's that think this is some new requirement.
How the h*ll were you determining if a market was stable, rising, or declining before?

Alakazam! Stable!

 

[Fernando]

Page 1 Neighborhood Trends is indeed based upon a 12-month analysis as far as I am aware, although IMO more recent sales should be prioritized in the industry formula applied to determine the "predominant" value...

In an increasing trend, 12 month analysis forces us to use the median during that period instead of more recent median price. And reviewers want appraisers to comment if below or above median price in area.

 

[gorillakimchi]

I’d like to see a real example of how this appears in a report.
It’s frustrating that we’re putting in more work while fees have either remained the same or even decreased compared to 10 years ago