1004mc Is It Required Or Not?

[Restrain]

Fannie doesn’t require it. FHA and Freddie still do. Lenders require it because they have for years. And no, the MC did not exist prior to UAD. It was added during the foreclosure bust by Fannie as part of the foreclosure reports. It wasn’t until several years later it was required by Fannie for new loans. Still a useless POS.

 

[Carnivore]

Fannie doesn’t require it. FHA and Freddie still do. Lenders require it because they have for years. And no, the MC did not exist prior to UAD. It was added during the foreclosure bust by Fannie as part of the foreclosure reports. It wasn’t until several years later it was required by Fannie for new loans. Still a useless POS.

I think i said it before but I rarely found it useful. I did try a few experiments with it; I took a neighborhood/subdivision that had a lot of sales and what happened was interesting. I used every sale. Not necessary comparable that you would use in your report but all the sales. It flat put out garbage stats on the S/D.

If I cant narrow down a particular hood then I go to more broader look at the market. additionally I have used something like this attached pdf. Having said that my MLS system is very powerful and I can actually segment a market using the MLS map tool. This last method is very good on determining the appreciation/depreciation of market values, sp/lp ratio and the absorption rate.

Bottom line is I paint a pretty good picture that supports my 1st page and grid page adjustments if any. Frankly the Graphs I use are very visual and the readers can see my data. The 1004mc just does not do that very well

Again the example attached is just a health check of the county. When I attached the charts with this there should be no doubt in a power users mind how I got where I did.

 

[BarbaraNJ]

"The customer is always right"
In other words, since they're paying, they get to set the parameters.
I do mostly FNMA work, and the clients will now accept a report without the MC form, but continue to demand that I fill in the Cost Approach, even though I pointed out the on the form itself it states that the Cost Approach is not required for a FNMA appraisal. I find it frustrating, since the Cost Approach has no bearing on market value in a totally residential area in my opinion. But my opinion doesn't count. If I want the business, I fill out the Cost Approach. So give them what they want, even if they don't need it.

 

[glenn walker]

At least 20% of all items in lender reports are not Fannie-Freddie Guidelines - These are called lender over-lays and Fannie -Freddie only require there minimums to be met and have no problem with additional items being included. The same with FHA the ( MPR) and 4000.1 handbook are the minimum property requirements and if the appraiser complains HUD will simply tell him-her you accepted the assignment and the lenders scope of work so just do it. The 1004MC will probably be around a long time and it's been rumored that a new one is in the works that will be UAD compliant.

All these guidelines were created based on Nationwide Handbooks and each State has different nuances - In California Chase-B & A-Wells Fargo-and almost any other lender I work for requires the Hot water heaters to be double safety strapped , smoke and carbon monoxide detectors and a few other items. They also want photos of these items- BUT- every week we get some appraiser screaming it's not in the handbook or cite the source but most are OK once you explain to them what lender overlays are. The newest one sending some appraisers crazy is lenders wanting interior photos of garages - WHY ? my guess is we have so many people in my area with people ling in them and many leave the garage door in place so neighbors and City and County Code compliance don't see anything unusual when driving by. Another PITA so I just take interior photos of garage because some hills just are not worth dying on and digital photos are free.

 

[TRESinc]

At least 20% of all items in lender reports are not Fannie-Freddie Guidelines - These are called lender over-lays and Fannie -Freddie only require there minimums to be met and have no problem with additional items being included. The same with FHA the ( MPR) and 4000.1 handbook are the minimum property requirements and if the appraiser complains HUD will simply tell him-her you accepted the assignment and the lenders scope of work so just do it. The 1004MC will probably be around a long time and it's been rumored that a new one is in the works that will be UAD compliant.

All these guidelines were created based on Nationwide Handbooks and each State has different nuances - In California Chase-B & A-Wells Fargo-and almost any other lender I work for requires the Hot water heaters to be double safety strapped , smoke and carbon monoxide detectors and a few other items. They also want photos of these items- BUT- every week we get some appraiser screaming it's not in the handbook or cite the source but most are OK once you explain to them what lender overlays are. The newest one sending some appraisers crazy is lenders wanting interior photos of garages - WHY ? my guess is we have so many people in my area with people ling in them and many leave the garage door in place so neighbors and City and County Code compliance don't see anything unusual when driving by. Another PITA so I just take interior photos of garage because some hills just are not worth dying on and digital photos are free.

it's too bad we can all be as luck as djd09. he posted that none of his clients require anything above and beyond, they just send him an address and a check later. then again that may just be a lie....

 

[djd09]

yep 15th st is a party.

glen taught me about lender overlays. which section of USPAP is that in?

 

[BRCJR]

Fannie doesn’t require it. FHA and Freddie still do. Lenders require it because they have for years. And no, the MC did not exist prior to UAD. It was added during the foreclosure bust by Fannie as part of the foreclosure reports. It wasn’t until several years later it was required by Fannie for new loans. Still a useless POS.

Freddie does not require it.....

 

[TRESinc]

yep 15th st is a party.

glen taught me about lender overlays. which section of USPAP is that in?

now i get it. much like your formative years through your early 20s you didn't get invited to any of the parties so you become bitter. history is repeating itself. makes perfect sense now.

 

[djd09]

yawn yawn yawn.

the only thing bitter is fannie.

now get back to the AMC reviewing process.

 

[TRESinc]

now get back to the AMC reviewing process.

ok i will. i'll have your report with the 35 corrections back to you shortly.