1004mc Soon Not To Be Required By Fannie Mae

[Meandering]

And you observed that while working at Freddie Mac?

They are a bigger pain now than they ever were before the HVCC.

.

 

[timd354]

And USPAP doesn't require a market condition form.
No link still, of course. What is that over under?
Double dipping too. Tell CAN i said hi.

USPAP does not require the subject property to be inspected either.

 

[Basically Rectangular]

The MC form itself can be misleading (in my opinion) since "increasing/decreasing" is describing an action that suggests future activity, yet as appraisers we are trained to analyze past activity and report as it relates to the current conditions. For example in my commentary I never state "increasing" or "decreasing" but rather increased, decreased, or has risen/declined over a specified period.

Also the MC form has a median for the first six months in one column and then changes to the medians for the next two-three month periods. WTF is that about? I simply can't rely on that without doing my own prior year analysis which I examine in the same period format, whether it is on a monthly or quarterly basis. So that apples-to-oranges grouping plus the future implications of the wording on those check boxes does not make me sad thinking they are considering retiring it. Maybe go to four columns representing the four quarters of the prior year? Would that confuse the intended user? Perhaps they don't think that sales over 6 months are important, so just group that data together and call it a day.

Overall the current MC form is better than no market conditions form but it could be improved rather than retired.

 

[NC Appraising]

The two flaws that should have stuck out and redesigned the form from the get go:

1. Neighborhood. Data pool just to small.

2. Search perimeters: 1,800-2,200 sqft, year built, site size, condition varies slightly, etc.
What if the majority of the closed sales that closed in the 180-365 time period were the mostly larger homes? Declining market? No, just bad data.

What if someone from fannie or an outside source developed a program where you could download the 1004mc data,and make adjustments for the GLA, site, etc. Then this adjusted data is then uploaded into the 1004mc for in the year.

The way we do it now could never work. It would only give good data if every home is exactly the same as of the subject propert.

 

[Joe Flacco]

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

You have never seen actual trend conflict with the town and zip code trend? Like when declining number of distressed sales results in zip code median price increasing while prices are actually stable? Or when prices at the low end are jumping sharply while mid- higher priced homes are stable but all together shows median price for zip code increasing? It is not that simple. The best you got is that paired sale of the same house over 2 years.

 

[Renee Healion]

The MC form itself can be misleading (in my opinion) since "increasing/decreasing" is describing an action that suggests future activity, yet as appraisers we are trained to analyze past activity and report as it relates to the current conditions. For example in my commentary I never state "increasing" or "decreasing" but rather increased, decreased, or has risen/declined over a specified period.

Also the MC form has a median for the first six months in one column and then changes to the medians for the next two-three month periods. WTF is that about? I simply can't rely on that without doing my own prior year analysis which I examine in the same period format, whether it is on a monthly or quarterly basis. So that apples-to-oranges grouping plus the future implications of the wording on those check boxes does not make me sad thinking they are considering retiring it. Maybe go to four columns representing the four quarters of the prior year? Would that confuse the intended user? Perhaps they don't think that sales over 6 months are important, so just group that data together and call it a day.

Overall the current MC form is better than no market conditions form but it could be improved rather than retired.

TimD had a funny/sad account of how that ridiculous format came to be--there was only capacity for three columns in whatever they were working with. It is here somewhere, fairly recent.

 

[Meandering]

USPAP does not require the subject property to be inspected either.

True,,
But it does say you can't have a bias that favors the client.

.

 

[Basically Rectangular]

You have never seen actual trend conflict with the town and zip code trend? Like when declining number of distressed sales results in zip code median price increasing while prices are actually stable? Or when prices at the low end are jumping sharply while mid- higher priced homes are stable but all together shows median price for zip code increasing? It is not that simple. The best you got is that paired sale of the same house over 2 years.

That may be true but also the parameters chosen for the data can have a huge effect on the results. Something as simple as moving or expanding a boundary, or not including REO sales can show differing results. The adjustments for timing can be huge, which is why perhaps many appraisers are reluctant to adjust for conditions.

 

[timd354]

TimD had a funny/sad account of how that ridiculous format came to be--there was only capacity for three columns in whatever they were working with. It is here somewhere, fairly recent.

Yes....the back story is pretty absurd. At the time that Fannie created the 1004MC, they scanned all of their loan documents, including the appraisal and the attachments to the appraisal - The scanning technology they had at the time (OCR was not very good at the time) could not handle more than 3 columns of numerical data and that is why the form ended up with two columns that include 3 months of data and one column with 6 months of data.

 

[djd09]

More excuses. Still blaming appraisers for No Doc Loans fiasco. They say we do not perform a proper analysis but never verified income. Shameful.

And where's the Link? Maybe the tooth fairy will bring it tonight while i sleep.