1004mc

[residentialguy]

I'm not sure what to make of your use of the term "sounding board." If that means I'm trying to clarify what Fannie Mae means in their selling guide and announcements I guess that may be the case. I suspect, however, that you are using the term derisively, as evidenced by our comments that I don’t “go against FNMA” and that I’m “one of them.”

I don’t “go against” Fannie Mae because it accomplishes nothing and panders to the crybaby mentality that I so despise.

Ok...so you admit that you fit the bill. You don't go against FNMA. Sugar coat it all you want, but you're a company man. You won't try to point out the bad, you just support FNMA. That's all I was saying. The post that I mentioned that there are some experts here who have skin in the game and taking what they say with a grain of salt, when someone talked about how misleading the 1004 form was vs 1004MC instructions. You and others don't say "you're correct", you just defend FNMA and instruct the appraisers to do it in a misleading fashion of the 1004MC and it's instructions.

I could approach them with suggestions as to areas where appraisers were having problems understanding the selling guide and changes to the guide would often follow.

Oh, there we go... so it's "areas where appraisers were having problems understanding" that you tell FNMA. So it's the stupid appraisers fault. LOL. Newsflash: It's FNMA who has major problems with their forms, certs, instructions, etc.

I have asked you in the past to leave me be. Here is a request that I made to you on this forum over two years ago:

“Please do not bring up my name on this forum. Please do not address issues to me. I do not wish to discuss this issue or any other with you. Please leave me alone. Good day.”

You are probably a decent fellow and I’m sure your wife and kids love you. Understand this is not personal but appreciate that I do not take kindly to your comments here. So, let me make this request to you one more time with the hope that this time you will honor it.

Did I mention your name? No. In fact you had to come to me and ask me if you might have been included in a general statement I made. Even then, I didn't just come right out and mention you. You brought this out on yourself, Rich. Don't expect me to stand idle and not speak up against FNMA's abuse and anyone backing it.

 

[Joe Flacco]

Just leave him alone man.

 

[residentialguy]

Never brought his name up, Joe....he pursued me here. I have great respect for his knowledge. I just tire from "the FNMA way" is the best and only way.

 

[timd354]

Just leave him alone man.

Mr. Heyn is a fine gentleman and one of the good guys in our profession. For someone to try to bait him and treat him with such utter disrespect is beyond disgraceful.

 

[Meandering]

just defend FNMA and instruct the appraisers to do it in a misleading fashion of the 1004MC and it's instructions.
It's FNMA who has major problems with their forms, certs, instructions, etc.
.

I hate to be the one to point this out, but Page 3 of the URAR is for additional comments.

NOTICE: The One Unit Housing Section on Page 1 and the comparable sales and listings information on the top of Page 2 of this form HAVE BEEN FILLED IN PER THE REQUIREMENTS OF THE FANNIE MAE SELLING GUIDE, to match the information contained on the 1004MC form, which may be in contrast to pre-printed language on this forum. Following the Fannie Mae Selling Guide was an assignment condition, hence, a USPAP requirement. Readers of this report should not be mislead by the pre-printed language of the report form, but rather should reference the Fannie Mae Selling Guide, which can be found at: https://www.fanniemae.com/content/guide/selling/index.html
I have presented additional market data and analysis in the narrative addenda, as there is limited data contained on the 1004MC form. There are insufficient data points that meet the requirements for the 1004MC form analysis, therefore my expanded analysis has been presented and the trends demonstrated in my expanded analysis have been annotated on the 1004MC and page 1 of the URAR.

This way,
no one is misled.
Fannie gets what it wants.
No one violates anything.
Fannie can hold the bag for their pre-printed language and contrasting Selling Guide requirements.

I think it is very important to recognize,
the timing of the 1004MC form, and,
the timing of "if REOs can be comps"
in relation to the "need" for the real estate market to "be recovering"
In order to understand,
why we have this screwed up form.


.

 

[Fernando]

When USPAP first came out, it was a mess. It was hard to understand and I went to college. In school, you learn that the simplest form is the best answer.
And so through 20+ years, USPAP has undergone so many changes and for the better. There's still room for improvements.

When the 1004MC came out, I was excited that finally a form to help us analyze market trends. Instead first class I went to in the Appraisal Institute, I was so disappointed that the class made the form even more confusing especially with a "teacher" who made mistakes on the form. In my head, I knew this form could be use for good or evil. Statistics is not the forte of appraisers and if misuse can misinterpret results. I can manipulate this form to get results what I want. Fortunately, the clients/lenders don't really understand this form. They really don't and so we don't need to go crazy over this form. Since it came out, I had been hoping for new revisions. I'm still waiting.

 

[J Grant]

The important thing to recognize is an appraisal is not a math problem to be solved. An appraisal is a marketability problem to be solved .
Appraisers get upset when there is scarce comp data (math) populating an MC form, when searched by defined neighborhood) But the point is whatever this search reveals, is what Fannie want to know.

Since real estate is a fixed location, Fannie wants a marketability study focused on subject relative to its fixed location (f defined neighborhood.). Filling out The MC form, analysis of the conclusions from MC form, and trend box on page one from that analysis is how they require it done . We have the rest of the appraisal for everything else and can perform as many additional/wider searches as we want.

 

[Meandering]

The important thing to recognize is an appraisal is not a math problem to be solved. An appraisal is a marketability problem to be solved .
Appraisers get upset when there is scarce comp data populating an MC form, when they search correctly ( defined neighborhood). But the point is,Whatever this search reveals, is what Fannie want to know. The question of MC form /analysis asks is what is the marketability of the subject.relative to its neighborhood. ( we have the rest of the appraisal for everything else)

Since real estate is a fixed location , Fannie wants a marketability study focused on the subject relative to its defined neighborhood. Filling out The MC form, providing analysis of the conclusions from MC form, and filling out trend box on page one from that analysis is how they require it be done .

This MC form analysis is in addition to wider data searches we might do,.

And doesn't Fannie already know that with the CU?

Or did some primary mortgage funded by a credit union sneak past their database?


.

 

[Don Clark]

Just a final thought on this subject. It appears to me that the problem is with the definition of Neighborhood(not clearly defined by Fannie Mae). A neighborhood is not just a a place name. For example, in some PUD's there may be many seprate place names. The neighborhood may be the entire PUD or just a small portion of it. Same is true for a subdivision of properties. There may be several place names in one neighborhood/subdivision. Fannie needs to better define what they consider to be aneighborhood.

 

[residentialguy]

I hate to be the one to point this out, but Page 3 of the URAR is for additional comments.

NOTICE: The One Unit Housing Section on Page 1 and the comparable sales and listings information on the top of Page 2 of this form HAVE BEEN FILLED IN PER THE REQUIREMENTS OF THE FANNIE MAE SELLING GUIDE, to match the information contained on the 1004MC form, which may be in contrast to pre-printed language on this forum. Following the Fannie Mae Selling Guide was an assignment condition, hence, a USPAP requirement. Readers of this report should not be mislead by the pre-printed language of the report form, but rather should reference the Fannie Mae Selling Guide, which can be found at: https://www.fanniemae.com/content/guide/selling/index.html.

Yes, I understand that we can add more language to try to fix FNMA's mess. It's kind of like having your spouse divorce you and the form states that they get all your money and the pre-print certifications says that modifications to the intended use is not permitted, all statements are true and correct, etc then your spouse adds a few sentences saying to disregard that. Would you sign it???? Any lawyer would say, rip it up and have your spouse use the correct language through out the form.