Fannie Mae and "Multiple Parcels"

[J Grant]

Again...wow.

Again you have nothing to say except Wow or other such

 

[Lee Lansford]

Again you have nothing to say except Wow or other such

Did you ever see the movie "Groundhog Day" starring Bill Murray? Remember? A day would pass by and...what do you know...the 'next' day he found that he had returned to the prior day. Well, I sort of feel the same way trying to explain this to you...over and over...time and time again...

Suggest--Return to the very first post in this string. Read and digest my posts as well as those of George Hatch (and the posts of a couple of others). Give it a try.

The information a few posts ago from FHA as how to correctly approach the problem? That is nothing more than correct methodology. The whole point of the OP is because Fannie tripped over themselves in offering inappropriate advice.

 

[J Grant]

Did you ever see the movie "Groundhog Day" starring Bill Murray? Remember? A day would pass by and...what do you know...the 'next' day he found that he had returned to the prior day. Well, I sort of feel the same way trying to explain this to you...over and over...time and time again...

Suggest--Return to the very first post in this string. Read and digest my posts as well as those of George Hatch (and the posts of a couple of others). Give it a try.

The information a few posts ago from FHA as how to correctly approach the problem? That is nothing more than correct methodology. The whole point of the OP is because Fannie tripped over themselves in offering inappropriate advice.

Speaking of Groundhog day, while I am happy to debate anyone with something to say, you repeatedly say nothing , and refuse to acknowledge USPAP does not prohibit appraising 2 properties wih a single opinion of market value.

BTW FHA is not how to correctly approach the problem, FHA is THEIR protocol for an appraiser to exclude the value of a vacant excess lot when it is on same deed as an improvement. . .it is an assignment condition for their program and nothing more than that.

 

[Lee Lansford]

Speaking of Groundhog day, while I am happy to debate anyone with something to say, you repeatedly say nothing , and refuse to acknowledge USPAP does not prohibit appraising 2 properties wih a single opinion of market value.

You and I have nothing to exchange any longer ...on this thread .

LOL

 

[Andrei Fin]

The information a few posts ago from FHA as how to correctly approach the problem?

Is the problem in FHA the same as FNMA? If FHA just wants the value of the main parcel, then is the second parcel to also be included on the APN line on page 1?

 

[Carnivore]

This either means that our "subject property" is not the same as with Fannie... or that a HC should be made to give no value to an amenity that has some value (depending on your data of course, but it's not often that land has no value)

No, it means that FHA only wants to know the MV of the Subject and its site. Period. There mandate is to make home ownership easier and more affordable. Adding excess land to a mortgage is not really making housing more affordable.

 

[gregb]

https://www.appraisalinstitute.org/assets/1/29/Common_Errors_and_Issues_2_1_2018.pdf

"Excess Land and Surplus Land Excess land is commonly mishandled in assignments. It is often confused with surplus land. It is too often lumped in with the value of the entire property or ignored altogether. Excess land may be sold off separately from the rest of the property, so in effect, the subject property becomes two subject properties. Excess land may have a different highest and best use than the rest of the site. The excess land should be described in the Description section and it must be addressed in the highest and best use analysis. Further, excess land will have to be treated separately in the valuation process. An entirely different set of comparable data may be required. The value of excess land must be reported separately. Be careful about adding the value of the excess land to the value of the rest of the property, as the sum of the parts may or may not equal the whole. Surplus land does not have a separate value, as it cannot be sold off separately. It is “extra” land that 13 | Common Errors and Issues may or may not contribute value to the overall property. It does not have an independent highest and best use. It may have the same value per unit of comparison (e.g., value per square foot, value per acre) as the rest of the site, or it may contribute less per unit of comparison."

 

[Carnivore]

I learned something this week. Did you all know that Lenders are offering 97% LTV Conventional purchase money Loans!! Whoa Imagine the Stips your going to get from AMC Phone Monkey Dot Com! :-(

 

[Andrei Fin]

No, it means that FHA only wants to know the MV of the Subject and its site. Period. There mandate is to make home ownership easier and more affordable. Adding excess land to a mortgage is not really making housing more affordable.

It is making housing affordable when the subject property consists of two parcels and would not otherwise qualify for a loan. Remember that the Fannie Mae newsletter was about loan eligibility of the subject property. The problem with adding excess land to a mortgage is that the excess land could be sold off, resulting in loan losses. But for this subject property, it can't be sold off without paying off the loan.

Maybe people can't agree on the solution after 1,000+ posts because they can't agree on the problem. People have been filling out forms for so long that they forgot how to do a Scope of Work. Start with Step 1 instead of skipping straight to HBU.

 

[Carnivore]

It is making housing affordable when the subject property consists of two parcels and would not otherwise qualify for a loan. Remember that the Fannie Mae newsletter was about loan eligibility of the subject property. The problem with adding excess land to a mortgage is that the excess land could be sold off, resulting in loan losses. But for this subject property, it can't be sold off without paying off the loan.

Maybe people can't agree on the solution after 1,000+ posts because they can't agree on the problem. People have been filling out forms for so long that they forgot how to do a Scope of Work. Start with Step 1 instead of skipping straight to HBU.

I have no issue with the Original Post. Lee is correct. FNMA is wrong. Period. I only posted what FHA says about it, which is different than FNMA

I have not disagreed with Lee since post #1.

.