1004MC & Neighborhood Section page 1

[Webbed Feet]

From https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/appraisalfaqs.pdf​

Guidelines for Using Form 1004MC
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[FONT=Arial,Arial][FONT=Arial,Arial]The Form 1004MC is intended to provide the lender with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. [/FONT]​

[/FONT]

and so for its intended use it fails miserably and utterly....

 

[residentialguy]

Before the 1004MC, at the top of page 2, I used to se very high numbers such as 40 active and 30 sold. Now on the 1004MC, they may have a total of say 5-10 closed sales.

Either appraisers have changed the meaning of a "neighborhood" or they are intentionally narrowing the data because there lazy axxes or just Skippie's?

I think it is possible that they realized they were expanding beyond the subject's neighborhood and now are using comps in the neighborhood. Many did that because they had to go outside of the neighborhood for comps. iow, they used their search parameters instead of the neighborhood.

 

[JSmith43]

ResGuy, I deleted one or two PMs. It's a hard choice, which posts to delete, because I like to keep track of everyone threatening to burn my house down, etc.:laugh:

In the mean time, I just got done reviewing the Fannie selling guide. The last official change on point that I found was announcement 8-30 (11/14/2008) that said for appraisers to report conclusions regarding market trends and conditions prevalent in the subject neighborhood in the Neighborhood Section of the appraisal report. Easy enough to summarize in the lines following the subsection of Neighborhood labeled Market Conditions, but those of you with free form text could add a summary just about anywhere

When there is no clear trend, I'd mark Stable by default, with an explanation. Let's see, the last year's data was influenced by unprecedented and unsustainable tax credit programs, an unprecedented and unsustainable intervention in MBS purchases by the Fed at 1 Trillion+/Yr, thusly pulling markets into closer balance via unsustainable efforts. Doesn't sound stable to me. Then again, there may not be recent evidence of a trend, kind of like the early morning of December 7, 1941 there was a clear trend of peace in the region even though there are funny blips on the new radar gizmo.

 

[CANative]

kind of like the early morning of December 7, 1941 there was a clear trend of peace in the region even though there are funny blips on the new radar gizmo.

The radar dudes thought the blips were friendlies returning to base. Much like the mistakes that are happening now except it's a shadow inventory instead of zeros, kates and vals.

Tora, tora, tora. :laugh:

 

[JSmith43]

I actually include comments about unsustainable Fed intervention in MBS purchases and the once renewed & modified tax credit program, but I leave out the war analogies. It's uncomfortable enough delivering the actual statements-concerned that my report might take on a political tone, so I leave out frown faces, etc.

Regarding the 1004MC data that "must" be summarized in the Neighborhood section of Pg 1, I assume under the One Unit Housing Trends check boxes, per official Fannie: I plan on adding a label in free form text to that section & am looking for suggestions. Here
are a few labels I am contemplating using:

"One Unit Housing Trends" For Comps

"One Unit Housing Trends" 1004MC Specific

"One Unit Housing Trends" CompHomesOnly

"One Unit Housing Trends" AmongCompHomes

"One Unit Housing Trends" (CompSubset)

 

[CANative]

I already do that. With a combination of narrative comments and pdf data served up different ways and presented in exhibit pages.

 

[residentialguy]

Here
are a few labels I am contemplating using:

"One Unit Housing Trends" For Comps

"One Unit Housing Trends" 1004MC Specific

"One Unit Housing Trends" CompHomesOnly

"One Unit Housing Trends" AmongCompHomes

"One Unit Housing Trends" (CompSubset)

And with that I think....

 

[CANative]

And with that I think....

Make mine a "Plain Mary Jane." lol