1004mc argument with reviewer

[hastalavista]

Have a great rest of the weekend.

I plan on it; you too!

 

[Mike Kennedy]

Appraisal and Property Related Frequently Asked Questions (FAQs)
September 2014 Page 3 of 12

Q16. What type of properties are to be analyzed for the data reported in the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report form?

The data regarding trends to be reported in the One-Unit Housing Trends section must be reflective of those properties deemed to be competitive to the property being appraised. Additional commentary should be provided on the other segment(s) of the neighborhood when segmentation is present to aid in understanding the overall neighborhood dynamics.

Q17. Are the trends that are reported on the Market Conditions Addendum to the Appraisal Report (Form 1004MC) the same trends that are to be reported in the One-Unit Housing Trends section of the appraisal report (Form 1004)?

Yes. The conclusions regarding trends that are obtained from the Form 1004MC must be the same trends reported in the Neighborhood trends section of the Form 1004. The information reported on both forms must be consistent to provide the lender with a clear and accurate understanding of the market trends and conditions present in the subject neighborhood, based on properties that are considered competitive with the subject being appraised.

Q34. Are there any limitations to the distance that a comparable sale may be located from the subject?

No. Comparable sales located a considerable distance from the subject property can be used if they represent the best indicator of value for the subject property.

In such cases, the appraiser must use his or her knowledge of the area and apply good judgment in selecting the comparable sales that are the best indicators of value, and the appraisal must include an explanation of why the particular comparables were selected.

This may be especially important for appraising rural housing since rural properties often have large lot sizes, and rural locations can be relatively undeveloped.

Q41. What should the appraiser do if there is not enough data to provide a meaningful analysis?

If there is not sufficient data to provide a meaningful analysis for the defined neighborhood, the appraiser must complete the form based on the information that is available and provide an explanation. The lack of data may be an indication of the market conditions.

If additional analysis of nearby areas that include competitive properties is performed, it must be discussed in the summary/conclusions section of the form.

In any scenario, the Neighborhood section of the appraisal report must include the appraiser’s conclusions regarding the housing trends.

 

[J Grant]

Denis is right and the reviewer sounds like a moron. Explain it best you can and perhaps ask to speak to the chief appraiser at the company if the reviewer keeps giving you a hard time.

 

[Doug Wegener]

My thoughts exactly

You might want to sit through and watch the 1004MC training video on the website (Efannie.com) just to make sure they haven't slipped in that term in their presentation (I watched it again a few months ago; I don't recall them defining the neighborhood as the "tract").

Good luck!

Oh, and you've probably already thought of this, but I'll throw it out:

Let's assume that your client won't budge but you don't want to lose the client over this; some hills are worth dying on, some are not. What can an appraiser do?

IMO, the appraiser can
1. explain in the addendum the contradiction and conflict between the client's interpretation and the appraiser's,
2. state that the form-portion of the report is being completed consistent with the client's interpretation,
3*. state that the report also includes a supplemental analysis that is consistent with the appraiser's understanding, and
4. since this item is fully disclosed and both sets of analyses are provided, the client and any intended user can fully understand the market dynamics affecting the subject and that were considered in this appraisal analysis.


* For what it is worth, I supplement every report I do with a 4-6 page market analysis. Sometimes, the data on the 1004MC is too limited, so I would need to supplement that form anyway. The reason I do it is because I want to make it very clear how I analyzed the market and provide support for my market conclusions.
Some other appraisers on this forum do something similar.

Good luck!

Some hills are worth dying on and others are not. This doesn't look like one worth dying on.

 

[Deleted member 77547]

Since the reviewer is so adamant about his newly understood Fannie definitions/protocol, I'd diplomatically ask him to produce a link or document outlining his assertions so you can make sure you're doing it correctly moving forward.

Then decide if this is a hill you want to die on. Which I suspect it is not. But someone will have learned something.

 

[residentialguy]

Reviewer got it wrong... who woulda thunk, lol

No difference between "immediate neighborhood and neighborhood.

 

[Roy Courtney]

Do you need my signature on the appraisal? Ok, then we will do it my way! Not occasionally but every damn time! Somehow you are receiving a paycheck because of my signature.....go grab the mop! :new_all_coholic:

 

[Gregory Beck]

I would ask the reviewer to show me where it says what he is claiming, otherwise no.

 

[Dale Smalley]

Explain all sales are not considered as similar comps. I use the mc form for all sales in the market area from which I select similar comps to be used.

 

[residentialguy]

Explain all sales are not considered as similar comps. I use the mc form for all sales in the market area from which I select similar comps to be used.

That is an example of an incorrect way to fill out the MC, Dale. This will get the appraiser in trouble. You can add supplemental analysis of broader search criteria in additional comments, but the data on the MC grid is strictly for comparables.