AMC Notifies appraisers of UAD Compliance

[Riick]

I can see Fannie's reviewer throwing a fit over one of my recent appraisals.
I used one of the same actives I used a few months ago for a different appraisal.

At that time "Active A" it was a low C4
asking $95,000 with MLS # A1B1C1D1.

Since then, "Active A" has been renovated,
now C3 condition, asking $155,000
-but- the MLS # A1B1C1D1 remains unchanged.

Appraiser must have lied about previous price/condition
-- or lied about current price/condition -- Right?!
.......m2:......m2:

 

[BRCJR]

I think the problem will be worse.

An Appraiser will assign a condition or quality rating to a Comp, then 2 months later use a +1 or -1 condition or quality rating for the same Comp which is in similar condition and quality as when used earlier..

Why would the Appraiser change the rating?

 

[William K]

Why would the Appraiser change the rating?

Because at the start Fannie and Freddie knew what they wanted but as usual didn't explain well. So appraisers began to interpret what they wanted. They would indicate a C-3 on a property and of course the comp was worse than the subject so naturally it had to be a C-4. Next job in the area they have a C-4 property but that comp is actually better than the subject so they indicate a C-3. Because they weren't informed that it was acceptable to have 2 properties rated the same yet still make an adjustment. There are still many underwriters and AMCs which can't understand how the subject could be rated a C-4 and Comp 1 rated a C-4 yet require an adjustment. But Comp 2 rated a C-4 didn't require an adjustment. They would have been better off to require a "C" rating of the subject with the Comparable properties rated as INFERIOR, EQUAL, SUPERIOR to the subject.