Fannie Mae: NO more Finished Basement included in GLA Starting February 2022

[Fernando]

I appraised this house a few years back for a road project. 0 sq.ft. and 3,000 sq.ft. basement per the new F/F regs. Lot rolls to rear, back of house is above grade.

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Looks like there's a 2nd floor above grade. Need to separate the two levels.
Such a house I can see might have foundation problems being below grade.

 

[andrew81]

yes what? the market does not recognize ansi. so keep setting anti market standards just like USPAP says

Yes, a contractual agreement.

 

[andrew81]

Who is “they” in this statement? The lender or Fannie Mae?

They, the lender

 

[Terrel L. Shields]

I appraised this house a few years back for a road project. 0 sq.ft. and 3,000 sq.ft. basement per the new F/F regs. Lot rolls to rear, back of house is above grade.

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Well, it begs the question - is it a 'quality' issue. Or is it a passive solar design...?

That's the Fannie way but it's not...

 

[Tom D]

i have little to comment on this insanity. once again the old USPAP perfectionists here, have now re-appeared as the new ansi perfectionist. my idea is just like with zoning, we have a box to check for grandfathered use.
i suggest to fannie a check box titled 'grandfathered GLA measured'. i suppose the new ansi exception code might be that box. at least when you use it, and i have, it tells someone that 'eh, this may not be ansi accurate'.

 

[Tiffany Gibbons]

Winner for ANSI award is the one who was able to convince Fannie in forcing appraisers to use ANSI standard.
Big win and money for ANSI.

It does not seem to be working out as anticipated, so there's that. I think Fannie and Freddie thought agents would jump at the chance to cut out appraisers, but they don't want to change how the sell.

 

[DWiley]

I think Fannie and Freddie thought agents would jump at the chance to cut out appraisers, but they don't want to change how the sell.

Can you elaborate? How would Fannie's adoption of the ANSI standard (Freddie has not adopted) when an appraiser performs a traditional appraisal relate to a chance to "cut out" appraisers??

 

[Mark K]

Looks like there's a 2nd floor above grade. Need to separate the two levels.
Such a house I can see might have foundation problems being below grade.

No, there was no 2nd floor.

Foundation problems because its below grade? At the risk of having to point out the painfully obvious...most foundations are below grade.

 

[Fernando]

No, there was no 2nd floor.

Foundation problems because its below grade? At the risk of having to point out the painfully obvious...most foundations are below grade.

Below grade levels have more foundation problems.
I see you're not an observant appraiser.

 

[Mark K]

Below grade levels have more foundation problems.
I see you're not an observant appraiser.

No, they don't, not if they're built correctly.

I swear that if stupidity was painful you'd be munching Oxy like after dinner mints.