1004mc Soon Not To Be Required By Fannie Mae

[Terrel L. Shields]

Heck, 90% of the reports I see has a stable market.

So what is a "stable" market? Stagnant? Inflation goes on. With no increase in price or sales the market is slowing. Stable, to me, means any rise or fall is on a longer trend line. My area had growth throughout much of the great recession but was off trend, much lower activity, little price appreciation. Falling prices were generally older homes not the newest... Herkie Jerky prices in a small area here is completely meaningless, but what is the trend in the regional MSA?

 

[djd09]

I may not be the appraiser 'guru' like some here, but let's spin the number. 5% of 100,000 is 5,000. So if the 'median' sale price varied either up or down 5k , i would mark it stable. You are welcome, Fannie.

 

[Terrel L. Shields]

where market was moving at least 5% up or down.

Over what time period and how does that compare with an annualized rate...and do they adjust for seasonal markets? Hard to sell a snowbird a Yuma house in July.

 

[Evincere]

Methinks Fannie might have come to the realization that they really don’t want to know what they thought was imperative. I think it may have something to do with the macro economic picture at hand.

^^^

What he said.

 

[Joe Flacco]

I'm pretty sure Fannie Mae believes that their data science is better than appraisals. That's not good for appraisals.

 

[Joe Flacco]

But I don't doubt that appraisals that should be marked increasing or decreasing are being marked stable either. I doubt many are doing market conditions analysis outside of the 1004MC form.

 

[Carnivore]

I'm being 100% serious when I say this.

Fannie, Freddie, lenders, AMCs need to send out monthly emails or whatever to tell us to make adjustments, report rrtracks, etc. And to stop doing it the way you were trained or to keep the volume up.

O yeah...send something out to the AMC reviews and UWs.....let appraisers make adjustsment... across the boad... market conditions etc. Stop busting chops.

I did not read past your post above because I wanted to ask something. I have always made adjustments for market conditions(time). I have not had one lender or AMC tell me not too! But I don't just provide a 1004mc, maybe thats why.

 

[Evincere]

My takeaway was that the intent was to get appraisal reports to adequately analyze the market and support its trend conclusion. Their review of a lot of appraisals (like, a million) determined that the vast majority of appraisals indicated "stable" even when the markets had increased or declined by more than 5% (and, I mean "vast majority"... like 80%+).

That isn't to say that the appraisers were fudging the numbers; their conclusion was, while the 1004mc's intent was good (ensure appraisal reports actually analyzed the data and made trend identifications based on those results), it wasn't achieving the results; what the reports were saying was in conflict with what was actually happening. Better to get rid of it than continue requiring it under those conditions.

If all you say is true. That inconsistent, not enough or lack of adequately supported market trend analysis was/is insufficient with the 1004, I can’t wait to see what their modernized, hybrid form looks like and what ( criteria ) info will be determined to be an adequate market analysis.

Based upon hybrids I’ve seen...maybe A few MORE checkboxes? A revised more modern version of 1004MC?

 

[Elliott]

I have never, not once, had someone want more information or clarification on the MC.

Drop MC....so you still have to do a MC search to fill in the top of Page 2. So instead of spending 15 minutes on the MC, it will be 14 minutes. Are they going to drop 2-listings too? I'd knock $50 off for not having to have 2-listings.

But why does Fannie care? Its not like they pay for appraisals.

I was having a snack at the golf course turn shack. Wouldn't you know it, a MB was sitting next to me yapping on the phone about his deal. He mentioned they were waiting for the "appraisal," but said, "Hey Jim, y'know the buyer doesn't own a house, they rent, so if they rent out this house that they are buying, wouldn't that be their "first" house. With some checking someone told him, "No, that's an investment property, doesn't qualify for "owner occupied, first home." And they worry about appraisers?

 

[DWiley]

I have never, not once, had someone want more information or clarification on the MC.

Drop MC....so you still have to do a MC search to fill in the top of Page 2. So instead of spending 15 minutes on the MC, it will be 14 minutes. Are they going to drop 2-listings too? I'd knock $50 off for not having to have 2-listings.

But why does Fannie care? Its not like they pay for appraisals.

I was having a snack at the golf course turn shack. Wouldn't you know it, a MB was sitting next to me yapping on the phone about his deal. He mentioned they were waiting for the "appraisal," but said, "Hey Jim, y'know the buyer doesn't own a house, they rent, so if they rent out this house that they are buying, wouldn't that be their "first" house. With some checking someone told him, "No, that's an investment property, doesn't qualify for "owner occupied, first home." And they worry about appraisers?

Fannie has never required listings.