1. Welcome to AppraisersForum.com, the premiere online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Teachers cant even get it right on the 1004MC

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Tim Schneider, Mar 14, 2009.

Thread Status:
Not open for further replies.
  1. Tim Schneider

    Tim Schneider Member

    0
    Feb 8, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    I was talking to a local appraiser who took a CE class on the 1004MC form. The teacher told them to just put "Data not available" for the historical listings section. INCORRECT!!! I just filled one out using the George Hatch worksheet. Took me 20 minutes. Maybe I should call the teacher and offer to teach a section of their class on how to do it.

    So I think I just have my next great marketing mailer... What a correct 1004MC looks like, and how to spot corner-cutters.
     
  2. Esox

    Esox Member

    5
    Apr 13, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    Tim, if this was the class at Ho-Chunk on Wednesday, how could your friend be sure what was said? My Wife and I were there, as was Ray Miller who I spoke to briefly, and the sound system was so bad, the room so large, the crowd so big, the presentation screen so small, and the teacher's southern accent so thick, it was almost impossible to understand what the hell was going on.

    That being said, I think what I heard was the teacher saying that there are areas where the historical listing data is impossible to obtain in some MLS systems. Then it is acceptable to say data not available. In fact, isn't that why the form was recently updated including shaded boxes in those areas?

    On the other hand, his teaching did seem to contradict some statements I've seen made here regarding the breadth of search that should be done to fill the form. He is teaching that a wide range and variety of properties should be considered when analyzing the market to fill out the form.

    He also stated that the number of listings and sales on the top of page two could differ significantly from what is reported on the 1004MC.

    I took enough away from the class where I'm not worried about completing the form. Overall, however, the setting, sound system, and accent made the whole day a bit confusing and disappointing.

    Great food, though. One thing about the Realtors, when they put on a class, they lay out quite a spread. In the morning there were all kinds of pastries and bagels, coffee, and tea. For lunch they had a buffet with salad, potato salad, several kinds of rolls, a variety of cheese, ham, turkey, roast beef, and a variety of condiments.

    The sound system was so bad I ate about $25.00 worth of sandwiches. I felt I deserved it.

    Kevin
     
    Last edited: Mar 14, 2009
  3. Mike Kennedy

    Mike Kennedy Elite Member

    174
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    He is teaching that a wide range and variety of properties should be considered when analyzing the market to fill out the form.


    perhaps he missed the PRE-PRINTED word on the 1004MC form (stated several times on the form and in the instructions); also clearly stated on the top of Pg 2 of the 1004_05.

    "Comparables".:shrug:
     
  4. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois
    I attended two separate presentations (following the release of the revised 1004MC) on the 1004MC within the past several days.

    I can tell you that both presenters had VERY recent communication with the SAME person at Fannie Mae regarding Fannie's expectations of the appraiser. I can tell you that the presentations differed as to Fannie's expectations of appraiser compliance specific to the "shaded" fields on the form.

    My GUESS: Be on the watch for clarification from Fannie.
     
  5. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    He also I thought brought up the question was the difference between competing properties and comparable properties in your study of the analysis of the data from the MLS. Which should you use? I think he said competing.

    He also I think cover the fact that you need a large sampling for the data to be correct. Something like 30 or more, which would be impossible in a rural area a lot of the time.

    First half of the class I learned enough to do the form, the second half of the class was one of the worst half days of my life.

    The WRA told me there were 400 for the class. Yep food was good, snacks were good, coffee was good, but no dancing girls on the stage in the dinner area.

     
  6. TC

    TC Elite Member
    Gold Supporting Member

    29
    Jan 31, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Pennsylvania
    I thought you only put the moves on barrel jumpers.:cool:


    TC
     
  7. Elliott

    Elliott Elite Member

    54
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    So at these seminars, what do the instructors say is the importance
    of the data in the 1004MC? Does it improve the comparable
    analysis in the 1004? Is there a way of using the 1004MC to trend
    for time?
     
  8. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin

    Both and he did a good job of showing it, I thought.

    "I thought you only put the moves on barrel jumpers.:cool:"

    TC,

    They are/were my fist choice, but I have learned not to cull any. You get to be my age and you start remembering all the ones you culled and what if's follow.:unsure:
     
  9. Howard Klahr

    Howard Klahr Senior Member

    107
    Oct 4, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Tim,

    George's spreadsheet does not reflect DOM beyond the current listing for the properties reported in the analysis. In addition, the historical listing data only reflects a portion of the market (i.e. MLS data) while the form does not request only MLS data. Auction properties, FSBOs, Developer sales and even some foreclosure inventory is not marketed through the MLS. Obviously the percentage of the market that these properties will vary from market to market, I know in my area it can be as high as 15% to 20% on a pretty consistent basis.

    The form does not differentiate between sources of data but in fact very clearly states "Total #". To report information under these conditions would result in a misleading report. USPAP clearly state that clients may not impose a scope of work that will result in a misleading report and that is what the 1004MC form does. That is not to say that you are not able to deliver a market analysis, just not via the format provided by the 1004MC form.
     
  10. Don Clark

    Don Clark Elite Member

    14
    Jan 17, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    The AI is doing one in Virginia Beach on the 18th about a mile from my office. I have registered my son for the class. I had a conversation with a rep from Fannie Mae and he said that Fannie was doing a webinar arount the 9th, on line. I have not seen hide nor hair of such an event. But then I assumed he ment March 9th of this year. Silly me.:rof:
     
Thread Status:
Not open for further replies.

Share This Page