Appropriate definition of Market Value

[Surf Cat]

Overall, the reviewer stated my report was well supported, met USPAP, bank guidelines, etc. However, I need "Appropriate definition of Market Value stated and source cited".

I've always relied on the 1004's hardwired definition of Market Value within the report (near top of page 3 of 1004).

The reviewer quotes USPAP which states:

Definition of Value
Standards Rule 2-2 (b) (v)
The content of a Summary Appraisal Report must be consistent with the
intended use of the appraisal and, at a minimum:

(v) state the type definition of value and cite the source of the definition;

Once again, the hardwired definition of Market Value within the 1004 does not cover this?

I'm not mad, upset or anything....just want to give him/her what they want and move on...

 

[Mike Kennedy]

"Once again, the hardwired definition of Market Value within the 1004 does not cover this?"

Assuming the Bank required utilization of the Fannie Summary Report format -

Yes it does. refer them to form 1004_2005 Page 4, pre-printed and required DOMV, Source FNMA

Background: The Source for the Definition of Market Value utilized herein was published by Federal Regulatory Agencies pursuant to Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) of 1989 between July 5, 1990 and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, RFS, and FDIC on June 7th 1994, and in the interagency Appraisal and Evaluation Guidelines, dated October 27, 1994. To whit

“Market Value” is the value Appraisers are required to use when appraising property for a Federally Regulated Transaction, unless clear statements to the contrary are used. The definition is included in every FNMA appraisal

 

[Pilgrum]

Go to your Dictionary of Real Estate Appraisal on Copy and Paste the appropriate definition and give credence to the source.
Don't fight em. Guide em.

 

[sputnam]

Sounds like a reviewer who needs to read all of the form. I agree with Mike. Unless your engagement/SoW provided for some client mandated definition of market value, the definition printed on the form is what you use.

 

[Mr Rex]

The reviewer is technically correct. No where on the pre-printed form does it indicate where the definition of market value comes from. FWIW, the forms use the Title XI FIRREA definition of 1989.

 

[Surf Cat]

Got it....Thanks Mike, Pilgrum, and Mr. Rex.

 

[Jo Ann Meyer Stratton]

I have the following comment in my Expanded Comment Section:

SOURCE OF THE DEFINITION OF MARKET VALUE IN THIS REPORT:
Fannie Mae Single Family, 2002 Selling Guide, Part XI: Property and Appraisal Guidelines (06/30/02) XI, Chapter 2: Appraisal (or Property Inspection) Documentation (06/30/02), XI, 205: Definition of Market Value (06/30/02)

 

[Lee Lansford]

Overall, the reviewer stated my report was well supported, met USPAP, bank guidelines, etc. However, I need "Appropriate definition of Market Value stated and source cited".

I've always relied on the 1004's hardwired definition of Market Value within the report (near top of page 3 of 1004).

The reviewer quotes USPAP which states:

Definition of Value
Standards Rule 2-2 (b) (v)
The content of a Summary Appraisal Report must be consistent with the
intended use of the appraisal and, at a minimum:

(v) state the type definition of value and cite the source of the definition;

Once again, the hardwired definition of Market Value within the 1004 does not cover this?

I'm not mad, upset or anything....just want to give him/her what they want and move on...

The "reviewer" must have been experiencing the first day on the job and most certainly not an appraiser.

The request is silly. Period.

I'd point the reviewer in the direction of the definition of MV in the Fannie form and then move on to some more important (which would be just about anything).

 

[Pittsburgh Pete]

The "reviewer" must have been experiencing the first day on the job and most certainly not an appraiser.

The request is silly. Period.

I'd point the reviewer in the direction of the definition of MV in the Fannie form and then move on to some more important (which would be just about anything).

Direction is not the same as source. But it is a silly request although technically correct. Kind of a forest and trees thing.

 

[Rich Heyn]

There was a Q&A from the ASB a few years ago the issue of whether the fact that the definition was printed on a Fannie/Freddie form was in itself considered citing the source as the GSEs. If I recall correctly, the answer was that no additional citation was needed as the source was obvious.