ANSI -Split Level Property

[residentialguy]

Q11. Can appraisers use the exception code to voluntarily opt out of compliance with the ANSI standard?

No

https://singlefamily.fanniemae.com/media/30266/display

Who suggested to just opt out of using ANSI? Lol

 

[Dublin ohio]

Who suggested to just opt out of using ANSI? Lol

The exception code is only for homes that have no "above grade" finished area. You can't use it on a split level and call partial below grade area GLA. ANSI may not define GLA. But Fannie now uses ANSI to determine above grade and below grade area and only above grade is GLA per Fannie. Except in the case where their is no "above grade" finished living area. Which is when you use the GXX001 exception

 

[Fernando]

The exception code is only for homes that have no "above grade" finished area. You can't use it on a split level and call partial below grade area GLA. ANSI may not define GLA. But Fannie now uses ANSI to determine above grade and below grade area and only above grade is GLA per Fannie. Except in the case where their is no "above grade" finished living area. Which is when you use the GXX001 exception

I think there may be other exceptions which we haven't thought about. Just have to have a real good excuse to use the GXX001 exception.

 

[residentialguy]

The exception code is only for homes that have no "above grade" finished area. You can't use it on a split level and call partial below grade area GLA. ANSI may not define GLA. But Fannie now uses ANSI to determine above grade and below grade area and only above grade is GLA per Fannie. Except in the case where their is no "above grade" finished living area. Which is when you use the GXX001 exception

No... don't think they said that. Nice try though

 

[Dublin ohio]

No... don't think they said that. Nice try though

ANSI defines above grade and below grade. Fannie says only above grade is GLA except in situations where ANSI cannot be followed. What situation would there be where ANSI cannot be followed except with no above grade finished area.

 

[residentialguy]

ANSI defines above grade and below grade. Fannie says only above grade is GLA except in situations where ANSI cannot be followed. What situation would there be where ANSI cannot be followed except with no above grade finished area.

It can't be followed because it's utter nonsense. It turns into convoluted, misleading report with adjustments exploding into triple digits.
It can't be followed. It is an atypical situation. They didn't want a 1700 sf GLA cape COD turned into a 200sf GLA because the main level living area was partially built into a hill on one corner, so only the 200 sf upper bedroom is the GLA and the main level is basement. That's just idiotic to think that's what they intended!

Here it is:

"Is there an exception process?
If the appraiser is unable to adhere to the ANSI standard, the appraiser
will provide the code “GXX001-” in the Additional Features field
on the appraisal form and must explain why compliance was not
possible. For example, berm homes with their entire square footage
below grade would be eligible for an exception. The appraiser must
provide justification for an exception and lenders are responsible
for confirming the appraiser provided an adequate explanation.
Fannie Mae will monitor for inappropriate use of exceptions (i.e., using
methods other than the ANSI standard for homes that have typical
above-grade square footage)."

You can't mess with typical above grade square footage. But you can use exceptions for atypical graded homes so that they are compared as they typically function.

 

[Fernando]

It can't be followed because it's utter nonsense. It turns into convoluted, misleading report with adjustments exploding into triple digits.
It can't be followed. It is an atypical situation. They didn't want a 1700 sf GLA cape COD turned into a 200sf GLA because the main level living area was partially built into a hill on one corner, so only the 200 sf upper bedroom is the GLA and the main level is basement. That's just idiotic to think that's what they intended!

Here it is:

"Is there an exception process?
If the appraiser is unable to adhere to the ANSI standard, the appraiser
will provide the code “GXX001-” in the Additional Features field
on the appraisal form and must explain why compliance was not
possible. For example, berm homes with their entire square footage
below grade would be eligible for an exception. The appraiser must
provide justification for an exception and lenders are responsible
for confirming the appraiser provided an adequate explanation.
Fannie Mae will monitor for inappropriate use of exceptions (i.e., using
methods other than the ANSI standard for homes that have typical
above-grade square footage)."

You can't mess with typical above grade square footage. But you can use exceptions for atypical graded homes so that they are compared as they typically function.

Fannie said that is one example. So there are other possibilities. We just have to be creative and have appropriate justifications in outwitting Fannie.

 

[residentialguy]

Fannie said that is one example. So there are other possibilities. We just have to be creative and have appropriate justifications in outwitting Fannie.

It's not outwitting them. You have to be supportive and has to make the most sense. I believe they made issue is because appraisers were including finished walkout basement levels on splits as GLA. There was a lot of this going on in mountain homes. They would try to justify it with "the market views it as GLA" kind of crap.

 

[djd09]

go ahead, start giving examples where you cannot "comply" because the truth is that even the dreaded berm could be measured to ansi standards. i wont hold my breath waiting for these examples

 

[Dublin ohio]

That's just idiotic to think that's what they intended!

I have said that from the beginning. But that is the result of their requirements. I never said there was not an exception process. But it is not like the exception was prior to Fannie adopting ANSI. Before ANSI. You could call the partial below grade area of a split level GLA and compare to other split levels that way and explain. Can't do that with ANSI. Same with a hillside home with a walkout lower level. Could call the walkout GLA and compare to similar homes. Can't do that with ANSI