Purposely Mis-reporting Form Requirements ?

[ZZGAMAZZ]

The page one neighborhod section is about the neighborhood. Not just about properties that are comparable to your subject.

Should be logically although I learned from the Forum last year that ... of the four horizontal

Don't you download a year or two of data to discern the market trends from the MLS? You can use this data by clicking on top of the each cell and arrange from high to low or low to high of year built, date of sale, price, etc to fill out your trends.

Furthermore, in the neighborhood description, you tell the story. "The neighborhood consists of 20th century 1 and 2 story dwellings of average to good quality construction with multi-family units along major thoroughfares. There is evidence of modernization and some razing of older, smaller units, with new construction as allowed by zoning".

Something like that, that's just off the top of my head.

Dude....OP stated "page 1", price and age.

Good morning. I appreciate your response. Yea, I slice n dice market data several ways, reporting result in the page 1 spillover as well as the 1004MC.

NEVERTHELESS, my post pertains exclusively to the four horizontal areas at the top of the 1004 Neighborhood section. Neighborhood Characteristics and Present Land Use %age are straightforward, but the AF advised convincingly a couple of years ago thaat the "One Unit Housing Trends" pertain to the entire Neighborhood... but the "One Unit Housing" numbers --age & value--pertain to Competing properties only--and it does't make sense to me that the two One-Unit Housing descriptors can possibly pertain to two different metrics.

BTW you gotta give Fernando a break. He is certain that everything he says & does is 100% correct. He thinks AF stands for "Always Fernando" rather than "Appraisers Forum" !!!!

 

[Fernando]

The 1004MC form has been eliminated as a requirement by Fannie Mae. Although lots of our peers still use it. The requirement for appraisers to analyze and report on market conditions remains.

This analysis must be supported within the Neighborhood section of the appraisal report (page 1) which the OP was referring to.

You went off into the weeds with the comparables and the MC....that's all I was saying.

Speaking of neighborhood range, how do you get it?
Base on 6 months? 12 months? To Fernando, up to the appraiser.

 

[Surf Cat]

Speaking of neighborhood range, how do you get it?
Base on 6 months? 12 months? To Fernando, up to the appraiser.

Go back and read my post (#18) it's alllllll there.

 

[Surf Cat]

One Unit Housing Trends" pertain to the entire Neighborhood...

Correct

but the "One Unit Housing" numbers --age & value--pertain to Competing properties only

Incorrect

You're still within the neighborhood section which, the competitive sales would fall within. Both Dublin & Sputam posted this....

 

[TerryRohrer]

It seems there is significant misinformation here, as usual. The OP doesn't identify any particular loan type, but at least in the case of FNMA, the following is their official stance on the matter:
"When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. The appraiser's analysis of the property value housing trend section (increasing, stable, declining) must include factual data from information sources such as, but not limited to, market data, home price indices, multiple listing services, public records, and/or models. The trend indicated in the appraisal report must reflect the overall movement of the market based on a minimum of 12 months of data."

B4-1.3-03, Neighborhood Section of the Appraisal Report (06/04/2025)

This topic contains information on reviewing the Neighborhood section of the appraisal report form, including

selling-guide.fanniemae.com

FHA is a bit more succinct, but requires the same with additional reporting required:
"The Appraiser must analyze the broad market area first (neighborhood analysis), then analyze the specific market (direct sales comparison), and then report how the subject relates to its market area. "

https://www.HUD.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update16-5.pdf

 

[ZZGAMAZZ]

Page 1 defines the neighborhood price range.
Page 2 ask for comparables.
1004MC can go either way and reviewers get confuse how to look at it to the main report.

1004mc CAN'T go either way. It's for competing propertiess, and a similar form that could be used for all neighborhood sale doesn't exist in the ACI form packet.

The page one neighborhod section is about the neighborhood. Not just about properties that are comparable to your subject.

I agree and think that it Should be, but it isn't. I'll try to find the older AF thread when it was discussed. I lost a pretty damn good AMC client last year because I refused to follow it's instructions about the neighborhood reporting format--and to make matters worse, FNMAE responded to my email query by providing incorrect info. Hope I can find the old AF comments.

 

[ZZGAMAZZ]

It seems there is significant misinformation here, as usual. The OP doesn't identify any particular loan type, but at least in the case of FNMA, the following is their official stance on the matter:
"When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report, the trends must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. The appraiser's analysis of the property value housing trend section (increasing, stable, declining) must include factual data from information sources such as, but not limited to, market data, home price indices, multiple listing services, public records, and/or models. The trend indicated in the appraisal report must reflect the overall movement of the market based on a minimum of 12 months of data."

B4-1.3-03, Neighborhood Section of the Appraisal Report (06/04/2025)

This topic contains information on reviewing the Neighborhood section of the appraisal report form, including

selling-guide.fanniemae.com

FHA is a bit more succinct, but requires the same with additional reporting required:
"The Appraiser must analyze the broad market area first (neighborhood analysis), then analyze the specific market (direct sales comparison), and then report how the subject relates to its market area. "

https://www.HUD.gov/sites/dfiles/OCHCO/documents/40001-hsgh-update16-5.pdf

If I may, am I correctly interpreting the instructions above that the default protocol is to report overall neeighborhood in part 2 and competing in part 3 [unless of course both set of numbers are based on idenicl/similar values? THAT's what IMO make no sense; going back to my orig post asking if latitude exists for the appraiser to deviate from standardized repoting protocol if hee or she disclose and explains--kinda like a non-jurisdictional exception. The idea probably seems frivolous although IMO it's an issue critical eough to warrant consideration by those who create the standards.

 

[DWiley]

If I may, am I correctly interpreting the instructions above that the default protocol is to report overall neeighborhood in part 2 and competing in part 3 [unless of course both set of numbers are based on idenicl/similar values? THAT's what IMO make no sense; going back to my orig post asking if latitude exists for the appraiser to deviate from standardized repoting protocol if hee or she disclose and explains--kinda like a non-jurisdictional exception. The idea probably seems frivolous although IMO it's an issue critical eough to warrant consideration by those who create the standards.

When an appraisal is being done in relation to a mortgage, that mortgage is not for every home in the neighborhood. It is for a specific property. And the most relevant trends are those that affect/apply to the subject property.

Anyone who has been doing market analysis in neighborhoods for any significant length of time has almost certainly encountered the scenario where certain segments of housing where exhibiting trends that differ from another segment of housing in the same neighborhood. That is why the GSE guidance says what it says. Not all properties in a neighborhood experience the same trends at the same time.

I recall many times back in 2008-2009 where I found that one segment of housing in a neighborhood would be experiencing declining prices while, at the same time, another segment was not.

 

[shrubberyvaluation]

It can be confusing for a reader that the trends are for comparables despite being in the neighborhood section.

 

[ZZGAMAZZ]

Speaking of neighborhood range, how do you get it?
Base on 6 months? 12 months? To Fernando, up to the appraiser.

If based on competing properties, the data logically should be based on 12-months in order to correspond with the 12-month data reported in the 1004MC...and if not, it also shuuld be based on 12-month data in order to correspond with the 12-month competing data....although the formula that "automatically" determines the "Predominant" valuee isn't sufficiently defined in my opinion, i.e., if 12 month data is relied upon, that data must be sorted and prioritized, e.g., to weight results by contract date with recent activity prioritized. Maybe it doesn't matter. Maybe very little of what we do matters. I'm probably perceived by the AF as the dumbest MF ever to be licensed, yet almost every time I ask a question, no matter how ostensibly obvious, the range of response is about 365 degrees. JG once described incongruities as being based on the "Opinion" we express yet I presume that for every 10 appraisers who provide sage advice on the AF, 10,000 others who don't particpate probably are much less knowlegeable.