1004mc Is It Required Or Not?

[djd09]

ha. AMC who? the ones you troll for. no. afraid not. but keep trying.

 

[Carnivore]

yep 15th st is a party.

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

I think you will find what your looking for page 13 Scope of Work Acceptability and further. When it comes to residential FNMA:

Clients expect you to develop market conditions and report those market conditions. 1st place is page one, 2nd place is the 1004mc along with any supplemental statistics you might need to add yourself.

Maybe you were just being factious in with your question.

 

[DWiley]

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.

Actually, the 1004MC pre-dates UAD by a few years. Not that it matters, but in the interest of accuracy...

As for its usefulness, that depends on the appraiser. A correctly completed 1004MC is never useless. The problem is too many never learned how to complete correctly, which always meant far more than just filling our the grid at the top of the form.

 

[Terrel L. Shields]

A correctly completed 1004MC is never useless.

In a remote rural area, why would it not be useless? I mean it doesn't take Captain Obvious to know the market in those areas will not support many sales per month, or sometimes even years, so what is the point? It is a rural market and the economy, not the number of sales will dictate demand.

 

[Carnivore]

yep 15th st is a party.

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

I think you will find what your looking for page 13 Scope of Work Acceptability and further. When it comes to residential FNMA:

Clients expect you to develop market conditions and report those market conditions. 1st place is page one, 2nd place is the 1004mc along with any supplemental statistics you might need to add yourself.

Maybe you were just being factious in with your question.

In a remote rural area, why would it not be useless? I mean it doesn't take Captain Obvious to know the market in those areas will not support many sales per month, or sometimes even years, so what is the point? It is a rural market and the economy, not the number of sales will dictate demand.

I think Danny is correct in a strange sort of way. In a Rural Area I agree its not going to say much...and that's why its not useless. It clearly tells a reader that sales are sparse. What I do in Rural areas is include supplemental Statistics of the entire rural market segment area. I use all sales and sales only. Now I do kick out the real weird ones low and high. It seems to work pretty well for me. Mobile homes; I use all mobile homes sales and only narrow the choice by site size.

FTR, i think i have only had three maybe four 1004mc that made sense. In neighborhoods/subdivisions I think its more important to show/demonstrate all sales and what the market is doing there.

There is no real perfect way of determining market conditions when you using such small numbers. IMHO

 

[Terrel L. Shields]

There is no real perfect way of determining market conditio

That's my point. I can say more in a couple of sentences than the form can say.

 

[DWiley]

That's my point. I can say more in a couple of sentences than the form can say.

And my point is/was, that filling out the 1004MC correctly always meant adding such sentences in cases where the data grid had insufficient data. Doing that was not supplementing the 1004MC, it was merely doing it correctly. Unfortunately, only about 10% of appraisers ever did them correctly. So, now we have Fannie stating very publicly that they removed the requirement because so many appraisers could not do them correctly. Appraisers cheered that without even realizing what an insult they had just been slapped with.

 

[djd09]

It is worse then useless, it is misleading .

 

[djd09]

Clients

Who is the client? fannie? bank? borrower? state? USPAP? federal reserve? dc? taxpayer? courts? underwriter? CU? reviewer? can i stop now?

 

[Carnivore]

It is worse then useless, it is misleading .

Yes it can be, that is why you make comments and do like I do I say "See Attached Supplemental Statistics.