Does the 1004MC equal the Neighborhood One-Unit Housing trends on page 1

[Rich Heyn]

The seven-step program for appraisers and the 1004MC

1. Define neighborhood boundaries.
2. Identify comparable sales and listings within the neighborhood.
3. Categorize by date and populate grid on 1004MC.
4. If data is insufficient, perform a supplemental analysis using broader parameters. Do not expand neighborhood boundaries.
5. Report supplemental analysis in comments section of 1004MC or as an addendum.
6. Use results of supplemental analysis to determine appropriate check boxes for overall trends on 1004MC.
7. Carry over check box information to page one of URAR form.

 

[timd354]

1. Define neighborhood boundaries.
2. Identify comparable sales and listings within the neighborhood.
3. Categorize by date and populate grid on 1004MC.
4. If data is insufficient, perform a supplemental analysis using broader parameters. Do not expand neighborhood boundaries.
5. Report supplemental analysis in comments section of 1004MC or as an addendum.
6. Use results of supplemental analysis to determine appropriate check boxes for overall trends on 1004MC.
7. Carry over check box information to page one of URAR form.

Rich, that is very good and easy to follow guidance on how to correctly complete the 1004 MC. Appraisers who previously did not know how to correctly complete the 1004 MC now have no excuse not complete the 1004 MC correctly.

 

[Joyce Potts]

Rich, that is very good and easy to follow guidance on how to correctly complete the 1004 MC. Appraisers who previously did not know how to correctly complete the 1004 MC now have no excuse not complete the 1004 MC correctly.

If it only worked like that 75% of the time out there in the real world. It's not that most appraisers don't understand how to fill out the 1004MC, it's that the results are often nonsensical and contradictory to other statistical modeling used in the report.

 

[Peter LeQuire]

If it only worked like that 75% of the time out there in the real world. It's not that most appraisers don't understand how to fill out the 1004MC, it's that the results are often nonsensical and contradictory to other statistical modeling used in the report.

If the MC addendum isn't part of the report, what information would be reflected in the neighborhood trends? If it is, why is the information reflected in the neighborhood trends different from when the MC is included. It isn't logical.

BUT - we all get that the writer of the instruction book and can require whatever they want.

 

[hastalavista]

Once I got this into my head:
"The 1004MC doesn't stop me from providing the client my analysis in a format that I think is useful and meaningful for its intended use, but it does force me to provide the client analysis in a format that I don't think is so useful and meaningful for its intended use."
My frustration with the form went away.
:new_smile-l:

 

[timd354]

If it only worked like that 75% of the time out there in the real world. It's not that most appraisers don't understand how to fill out the 1004MC, it's that the results are often nonsensical and contradictory to other statistical modeling used in the report.

Then it is up to the appraiser to make sense out of the data and present the data and the appraiser's conclusions regarding the market in a way that is meaningful and credible to the intended users.

Please don't use the shortcomings of the GSE appraisal forms as an excuse for some appraisers who do not do an adequate job analyzing and reporting market trends.

 

[Meandering]

1. Define neighborhood boundaries.
2. Identify comparable sales and listings within the neighborhood.
3. Categorize by date and populate grid on 1004MC.
4. If data is insufficient, perform a supplemental analysis using broader parameters. Do not expand neighborhood boundaries.
5. Report supplemental analysis in comments section of 1004MC or as an addendum.
6. Use results of supplemental analysis to determine appropriate check boxes for overall trends on 1004MC.
7. Carry over check box information to page one of URAR form.

Rich, I have a question.

On the 1004MC,

Where it asks about REOs.

If none of my comparables is an REO, do I mark no, and ignore the obvious carnage in the rest of the neighborhood?

And it's a similar question for seller concessions. If none or only one of my comps in the 1004mc grid have any seller concessions, do I mark stable and ignore the rest of the market?

Any insight you could provide will help me in doing it correctly,

Thanks.

.

 

[Lee Lansford]

If the MC addendum isn't part of the report, what information would be reflected in the neighborhood trends? If it is, why is the information reflected in the neighborhood trends different from when the MC is included. It isn't logical.

BUT - we all get that the writer of the instruction book and can require whatever they want.

If the MC form were not a condition of the assignment, the appraisal would not be for Fannie.

If no MC form, the loan would not (more than likely) be accepted by many participants in the secondary market.

So, with no MC, the appraiser has a client who has assignment conditions different from Fannie and--barring some other specific assignment conditions regarding the reporting and analysis of the market--the appraiser can research, analyze and report as the appraiser deems appropriate.

 

[Lee Lansford]

Once I got this into my head:
"The 1004MC doesn't stop me from providing the client my analysis in a format that I think is useful and meaningful for its intended use, but it does force me to provide the client analysis in a format that I don't think is so useful and meaningful for its intended use."
My frustration with the form went away.
:new_smile-l:

Yep.

That's it.

 

[Mile High Trout]

Anyone who relies on forward or backward application of time adjustments based on such a small median sampling of the market, needs their head examined. Only if your subject is right there in the same little bracket as the other median examples, would such a concept even be plausible.

The primary condition with most lending assignments on 1004 form is pretty simple to grasp. It's a constant scope of work requirement these days.

You did it wrong. No matter what alternative method you employ, you've still done it wrong.

Now that you understand how lending review operates, carry on.