Fannie Condition ratings C1, C2, C3, C4, C5 and C6 on Page 1 URAR?

[YankeeFan]

Im wondering if any other appraiser's are starting to do this? I know the grid section page 2 of the URAR has a UAD condition drop box for the subject and sales but what about page 1 of the URAR? There are materials and "CONDITION" sections for exterior descriptions and interior descriptions in the report. Are appraiser's utilizing the C1, C2, C3 et cetera for each of these cell boxes also? For example : Foundation walls Poured Concrete/ C3; WIndow Type: Casement/Vinyl C2 and like Floors Carpet/Ceramic Tile C1 et cetera.....I didn't consider this until today as I was still using Excellent, Very Good, Good, Average descriptors in these sections. Does Fannie want the C code descriptions in these sections also? Your thoughts please.

 

[DWiley]

Im wondering if any other appraiser's are starting to do this? I know the grid section page 2 of the URAR has a UAD condition drop box for the subject and sales but what about page 1 of the URAR? There are materials and "CONDITION" sections for exterior descriptions and interior descriptions in the report. Are appraiser's utilizing the C1, C2, C3 et cetera for each of these cell boxes also? For example : Foundation walls Poured Concrete/ C3; WIndow Type: Casement/Vinyl C2 and like Floors Carpet/Ceramic Tile C1 et cetera.....I didn't consider this until today as I was still using Excellent, Very Good, Good, Average descriptors in these sections. Does Fannie want the C code descriptions in these sections also? Your thoughts please.

The Fannie FAQ specifically says not to use the C1-C6 ratings for those individual items. So my thought is that I would not use them.

https://www.fanniemae.com/content/FAQ/uniform-appraisal-dataset-faqs.pdf
Question 34

 

[EddieB]

So you are arbitrarily assigning ratings to individual improvements outside of Fannie Mae UAD definitions and guidelines ???? I predict danger

 

[DWiley]

So you are arbitrarily assigning ratings to individual improvements outside of Fannie Mae UAD definitions and guidelines ???? I predict danger

As their are no defined UAD responses for the condition of individual items, what danger is it that you are predicting??

 

[Tom Woolford]

As their are no defined UAD responses for the condition of individual items, what danger is it that you are predicting??

If there are no defined responses, why would you try to use them. Danger Will Robinson.

 

[KenAZ]

I use Good, Above Avg, Avg, Below Avg, Fair and Poor.

Feels good to use condition descriptions that actually make sense !

 

[EddieB]

The Subject Condition Rating is first reported on page one of URAR, then reported in the grid on page two, then the definition pages describes the different condition ratings. Using C1-C6 for individual items would be confusing at best and misleading at worst.

Now if you want to use another labeling systems like I1-I6 for interior items and then add those to the appraiser defined abbrev., then I could see a benefit to that.

 

[Jo Ann Meyer Stratton]

Since last summer I have been using the quality and condition ratings for the materials, etc. I have found that it helps me make a final decision of the overall quality and condition for the subject. So far I haven't had a single protest or objection from any AMC or lender. For example in the Exterior Walls blank an entry could look like this Painted Block / Q4 / C3, Roof Surface Comp Shingle / Q4 / C4, Floors Carpet / Tile / Q3 / C4, Walls Drywall / Q4 / C4, etc, etc. I have a long explanation in my Expanded Comment Section that explains what and why I did what I did. Since a structure is comprised of many different items of various quality of materials and condition, this method breaks it down and helps explain why I said for example that the subject property is a Q4 / C2. I still say that Fannie and Freddie should had conferred with ad valoreum advisors, instead of worrying about upsetting Marshall and Swift. They have been using quality of construction codes for over 60 years. The system in Arizona uses seven ratings with three additional ratings for each of the seven. A Fannie and Freddie Q4 ranges from a 013 Fair to 013 Average to a 013 Good in assessments. After over 40 years of thinking in that rating system, I still do and than have to translate it to F/F ratings. So breaking it down to individual components help me arrive at F/F ratings. And I understand #34 in a different way. It ends with appraisers should do what they do today, which is what I am doing since I have been rating properties numerically since 1967.

 

[YankeeFan]

Since last summer I have been using the quality and condition ratings for the materials, etc. I have found that it helps me make a final decision of the overall quality and condition for the subject. So far I haven't had a single protest or objection from any AMC or lender. For example in the Exterior Walls blank an entry could look like this Painted Block / Q4 / C3, Roof Surface Comp Shingle / Q4 / C4, Floors Carpet / Tile / Q3 / C4, Walls Drywall / Q4 / C4, etc, etc. I have a long explanation in my Expanded Comment Section that explains what and why I did what I did. Since a structure is comprised of many different items of various quality of materials and condition, this method breaks it down and helps explain why I said for example that the subject property is a Q4 / C2. I still say that Fannie and Freddie should had conferred with ad valoreum advisors, instead of worrying about upsetting Marshall and Swift. They have been using quality of construction codes for over 60 years. The system in Arizona uses seven ratings with three additional ratings for each of the seven. A Fannie and Freddie Q4 ranges from a 013 Fair to 013 Average to a 013 Good in assessments. After over 40 years of thinking in that rating system, I still do and than have to translate it to F/F ratings. So breaking it down to individual components help me arrive at F/F ratings. And I understand #34 in a different way. It ends with appraisers should do what they do today, which is what I am doing since I have been rating properties numerically since 1967.

Thanks for this insight Jo Ann, very interesting. So in your opinion, its perfectly acceptable but would require additional appraiser defined explanations for the utilized codes so as to not be an issue or confused with the Fannie UAD defined codes. Is that my understanding of how you utilize them? The FAQ provided by the first poster did indicate Fannies response as No, they should not be used in the manner as established by UAD definitions for these individual items. I think I understand how your utilizing them but just need a little clarification as to how you or perhaps how you don't differentiate them with the fannie definitions? Does that make sense?

 

[residentialguy]

So you have UAD codes that mean what UAD means and then you have UAD codes to mean a different meaning???
As an esteemed peer once said; "Danger Will Robinson"