1004mc Soon Not To Be Required By Fannie Mae

[glenn walker]

Start checking the stable BOX : LOL

 

[NC Appraising]

Why are appraisers making this so difficult?

If the market is increasing...make a adjustment. I dont give a crap what or if FHA or fannie has a definition of a increasing market.

Do you think AVMs have this hard of a time? No, they are making them.

Share with us your support or market evidence sample for market conditions adjustments.

No problem:
click to expand. Same home. Only difference is the paint.


More?
You got it!!!







Expanded data I include sometimes (not the 1004mc DATA that I used in my report. Most of the time the 1004mc has too small of a data pool. We all know we should not expand the neighborhood just for data.
View attachment 36342

 

[NC Appraising]

Share with us your support or market evidence sample for market conditions adjustments.

No problem:
click to expand. Same home. Only difference is the paint.
View attachment 36339

More?
You got it!!!

View attachment 36340


View attachment 36341

 

[NC Appraising]

More?

Expanded data I include sometimes (not the 1004mc DATA that I used in my report. Most of the time the 1004mc has too small of a data pool. We all know we should not expand the neighborhood just for data. Therefore I simply copy the below into my report.


If you have Alamode, use the smart adjust feature. If not here: https://www.aqua-calc.com/calculate/home-value-appreciation

https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx#mpo

 

[Addie]

We run our market analysis for that specific market. So Fannie can say, CA, zzz MSA, county, zip, city etc is increasing, but we run the delineated market. So say a retirement community. We only do analysis for that community. We may mark stable. Fannie may run that zip etc and see increasing. Fannie is wrong. We (office) are right.

 

[NC Appraising]

USING APPRAISAL DATA!!!!
https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx#mpo

 

[Meandering]

Thank you Denis for the info.

For appraisers in less than highly developed areas this is good news.

I have a 7 page market conditions addenda for residential properties, because most times, you count yourself lucky to find 3-5 comp sales, 1 or 2 active listings. But that small data set on the 1004MC is no indication of a trend, especially in a seasonally impacted area. So while the overall market trend may be moving, the tiny data on the 1004MC does not show the movement, and then you have the issue that the page 1 of a URAR market condition must match the 1004MC. So of course the stable box is checked, and all the narrative explanation in the world, isn't going to get Fannie to know the larger analysis of the market is moving. So, they get what they demanded they get.

But I agree with Rex, with at least 5+ years of increasing market trends in most areas, Fannie did not care the 1004MC was too small of a data set to indicate the trend, 'cause, you could just narrate that, it it would show in the active list prices.

But with a slow down, obvious in a large portion of the country, those list prices are going to be giant red flags.

.However, appraisers knew these flaws, and have been discussing them ever since the 1004MC became mandatory.

https://appraisersforum.com/forums/threads/1004mc.215192/

https://appraisersforum.com/forums/threads/growth-checkboxes-on-gse-forms.214739/

https://appraisersforum.com/forums/threads/1004mc-and-comps.206153/

https://appraisersforum.com/forums/...ood-one-unit-housing-trends-on-page-1.202712/

https://appraisersforum.com/forums/threads/active-listings-falling-short-of-oov.199484/

https://appraisersforum.com/forums/threads/form-1004mc-for-a-lake-front-home.197337/

https://appraisersforum.com/forums/threads/1004mc-question.193453/

https://appraisersforum.com/forums/threads/market-analysis-conflicts-within-report.191805/

Killing the 1004MC- 2011

https://appraisersforum.com/forums/threads/1004mc.172783/

https://appraisersforum.com/forums/threads/1004mc-lack-of-data-an-appraiser-guess.172211/


Thank you Wayne for maintaining the archives.

.

 

[NC Appraising]

Lastly,

Do simple research of closed sales within the past 12 months from within the PUD. Also note any pending listings to support you opinion of the market conditions.

Although, not every home is located in a high density PUD or subdivision....but!!!! just because it is located in a low density or rural area does not automatically indicate a stable market!!!

This is not rocket science. It is 15-30 minute's worth of research.

 

[Meandering]

USING APPRAISAL DATA!!!!
https://www.fhfa.gov/DataTools/Downloads/Pages/House-Price-Index-Datasets.aspx#mpo

View attachment 36344

At what point,

Does it become a self-fulfilling prophecy,

to use the FHFA's data to tell GSEs that are run by FHFA, what the market condition is,

as if,

lenders do not already have access to FHFA's data?


.

 

[timd354]

Isn't the #1 job of the AMC to engage a competent appraiser for the assignment? If they are engaging appraisers that are not competent to appraise in unstable markets then are they doing their job? What is their role in the appraisal process then?

I see incompetent appraisal reports from both AMC ordered and direct ordered appraisals....it is the job of both a direct engagement lender and an AMC to engage a competent appraiser and from what I have observed, I cannot say that AMC's do a better or worse job of that then direct engagement lenders because the overall quality of the end product is on the whole ndistinguishable. Believe it or not, not everything wrong in the appraisal profession is due to AMC's and that is coming from someone who never did appraisals for AMC's because I observed what a pain in the rear they are to work from watching friends and colleagues deal with them.