Selling Guide Announcement (SEL-2024-07)

[chad hampton]

Damn, I just saw the 1004mc. Looks like a pretty stable market to me. I don't know if whoever the person at lending cares about that form, of even knows what they're looking at, but if they are questioning that 1004mc, hope they never see one of mine.

 

[DWiley]

Looks like a pretty stable market to me.

LOL - of course it does. I am confident that if you invested $260,000 into a fund last year, and that fund was now worth $252,000, you would use the same characterization

 

[chad hampton]

LOL - of course it does. I am confident that if you invested $260,000 into a fund last year, and that fund was now worth $252,000, you would use the same characterization

Is that really how the GSEs thinks appraisers/lenders are supposed to look at that form?

That’s about as ballpark of a form that I’ve ever seen. I would say all three of those numbers are in the same ballpark. That’s why being an expert in your local market area is critical. I wouldn’t use some generic form to override my experience in the market.

Not that I’m looking to add anything to that form, but the average GLA that makes up each of those columns would at least be a start to see if you’re comparing apples to apples.

 

[Dublin ohio]

Is that really how the GSEs thinks appraisers/lenders are supposed to look at that form?

That’s about as ballpark of a form that I’ve ever seen. I would say all three of those numbers are in the same ballpark. That’s why being an expert in your local market area is critical. I wouldn’t use some generic form to override my experience in the market.

But that is what the OP used originally to support their conclusions. So don't blame the form. OP also stated he added their regression model after the request was received. Why not include it to begin with if it supports their conclusions based on the "ballpark" generic form

 

[alebrewer]

I still think the mechanical view of "sales" and "prices" devoid of judgment is a markedly flawed methodology.

Intuitively, this makes complete sense. It's interesting, though, that my trend analysis typically looks about the same whether I'm modeling 'adjusted' sales or 'raw' sales. Of course, I'm only modeling the competitive market segment, but still - one would think the 'adjusted' sales might model differently, but most of the time they really don't.

 

[chad hampton]

But that is what the OP used originally to support their conclusions. So don't blame the form. OP also stated he added their regression model after the request was received. Why not include it to begin with if it supports their conclusions based on the "ballpark" generic form

That’s fine, I guess they could’ve used a whole bunch of charts and graphs originally. That just seems like a fairly flat line to me when you factor in all the unknowns that come with it.

Now the reviewer is supposed to be geographically competent as well, so maybe their experience is telling them that market is declining? Who knows.

 

[alebrewer]

I would’ve trusted the professional I hired.

You'd most definitely have been in the minority. The entire collateral review/collateral underwriting profession evolved because of lack of trust in the professional they hired. Heck - CU exists because of lack of trust in the professional that was hired.

 

[chad hampton]

You'd most definitely have been in the minority. The entire collateral review/collateral underwriting profession evolved because of lack of trust in the professional they hired. Heck - CU exists because of lack of trust in the professional that was hired.

And I don’t blame them for that, they decided to hire middle men who in turn only hire the cheapest person they can find. so I get the skepticism.

It’s just a downward spiral that keeps on going

 

[DWiley]

Is that really how the GSEs thinks appraisers/lenders are supposed to look at that form?

The data/analysis presented in the appraisal report is up to the appraiser. No one says that form has to be used. But, if that form is used, then conclusions contrary to the data presented should be addressed. If the lower median price in the more recent time period is due to GLA or some other factor (and it certainly could be), then the report should address that.

I have looked at a lot of reports over the past few months, and the clarification that the overall trend must be based on at least a 12 month analysis seems to have been missed/overlooked by quite a few.

The real point is that there needs to be market analysis, as required by STD 1 since its inception, not just form filling or feelings.

Some are resorting back to the 1004MC because it is simple and because there is lots of software available for its completion. It is the "easy button" approach.

 

[alebrewer]

It is the "easy button" approach.

No doubt. It can (and usually does) provide meaningful information, though.