Fannie Mae Q3 Update

[Surf Cat]

I just drove 4 sales this morning. 3 of the 4 photos were of a mailbox and/or driveway

I've done this with gated communities. Sometimes though, I wait for a car to pull in and I sneak in before the Electric gate closes.

Do you take binoculars with you or use a telephoto lens when you're at the side of the road? Are the MLS listings more descriptive than a Suburban property?

 

[CGinMN]

There is a lot to be learned from driving comps and viewing neighborhoods, especially in cities where things changes block by block. Rural area and suburbs that is less the case. It’s good that it’s up to the appraiser to determine when to do it. Can’t really control what others are or aren’t doing though. I wouldn’t lower my fees over this.

 

[gregb]

There is no way I wouldn't drive the comps, too many unknowns to walk away from. This is an idiotic policy.

I have been living in same town since 1966. There is not a street I have not driven. Neighborhoods change over time and it is amazing to see when I drive a comp that there is some externality impacting value that was not in my data bank of experience. Its the driving of the comp that is more important than the photo of the comp.

 

[Charles West]

I have been living in same town since 1966. There is not a street I have not driven. Neighborhoods change over time and it is amazing to see when I drive a comp that there is some externality impacting value that was not in my data bank of experience. Its the driving of the comp that is more important than the photo of the comp.

I agree, too many variables to ignore. New roofs, bad roofs, setbacks, recent renovations, trash property next door, the list is endless.

 

[Tim Hicks (Texas)]

I agree, too many variables to ignore. New roofs, bad roofs, setbacks, recent renovations, trash property next door, the list is endless.

Yeah, not so much on 10-50 acres properties. You do learn they keep a dumpster for trash at the street and underwriters will think you are smart aleck for posting a dumpster for a picture of the house.

 

[Mark K]

I could do way more rural appraisals in a day if I did not have to drive comparable sales.

Unless you've done rural appraisals like you do and I used to do, an appraiser has no idea how little the neighborhoods change. You can drive 5 miles down a road and the drive it again 5 yrs. later and the only difference is that someone built a new home or someone built a nice pole barn on an existing property. Driving comps in rural areas has always been a waste of time and driving comps in most suburban areas is only a slightly less waste.

As long as F/F is buying mortgages with borrowers who can barely fog an economic mirror, driving comps is such a minor issue as to be insignificant in the grand scheme.

 

[djd09]

USPAP does not require any photos...

 

[Non Sequitur]

The elimination of original comp photo requirements is in line with the general direction the GSE's are headed. That requirement originated at a time when most appraisals contained 3 comps. And as we all know, 'value' can change dramatically based on which 3 'comps' you use. Hence the gradual shift toward the 'CMS' (competitive market segment) instead of the ole '3 sale reports'. Eliminating the pic requirement is in line with that shift.

Exactly. And this isn't news to anyone who bothered to read the UAD 3.6 SOW and certs when they were published. And for anyone thinking this is a victory, my guess is after the time spent including comps considered but not used and an explanation, rating every component of the subject with Q and C-then the comps, measuring the threshold, having to support your site value with comps or show your math, etc. you will miss the good old days of driving comps.

 

[BRCJR]

Not driving comps= playing field for the skippies that did not anyway.

 

[alebrewer]

Exactly. And this isn't news to anyone who bothered to read the SOW and certs when they were published. And for anyone thinking this is a victory, my guess is after the time spent including comps considered but not used, rating every component of the subject with Q and C-then the comps, measuring the threshold, having to support your site value with comps or show your math, etc. you will remember the good old days of driving comps.

I'm actually a bit surprised that the SCA section of the new form still contains a grid. I was kind of expecting some kind of CMS type analysis - where you're distilling elements of comparison based on a much larger pool of data than the typical '3 comp' type stuff...