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

[The Bob]

I attended a Fannie REO seminar last year and this question came up and the consensus was you could do it either way. I've been using the C ratings since for components.

 

[Bobby Bucks]

I can see in the not too distant future where we are given a device to wander through houses clicking and pointing like Hare Krishnas in airport lobbies...... living room floor, carpet C3, Kitchen floor, tile C4, ceilings C3.

 

[Mr Rex]

Isn't using C1.C2, C3 etc on page one redundant and in conflict with Fannie edicts? How about using just the numeration. Foundation Walls: Brick&Block/3. Roof Surface: Composite Shingles/2. Floors: Carpet,Vinyl/4. etc. Of course since the 1 through 6 ratings would relate to the FNMA C ratings or the old M&S ratings wtf is the difference?

 

[YankeeFan]

Ok, now there's Senior and Elite members who are utilizing these codes evidently, and someone who attended a Fannie Mae REO seminar who indicates its OK....but yet FAQ from Fannie Mae itself indicates its Not OK...."unless maybe thats what you were doing in the first place?" Sinces the UAD codes were just implemented relatively recently I don't think anyone was utilizing them in this manner prior to their implementation...maybe some other numerical code method but not based on Fannies definitions. I would like to here Dennis DeSaix opinion on this issue now...cause now I'm a bit confused as to whether its appropriate or not???? Lets now look at it in the context of a peer review of someones work product.

 

[Jo Ann Meyer Stratton]

Q4 means average whether I am talking about the overall rating or the quality of the flooring. Same with condition; C1 is new whether the total structure is new or just the roof. So the same definition applies in both cases. Some homes are a mish mash of quality of materials as well as a wide range of condition. So I am saying the same thing when I type Carpet/Tile /New or Carpet/Tile/C1. For example some houses will have the very cheap wood paneling on the walls instead of drywall that might be in very good condition. So instead of typing Wood Panels/Good I type Wood Panels / Q4 / C3. Q4 for the cheap type of paneling, C3 for being in very good condition. Since I started doing that I feel much more confidant in my overall ratings. And like I mentioned earlier, I haven't heard a single word from any AMC or lender, so I will keep doing this unless somebody gives me a very excellent reason to not do it.

 

[J Grant]

Fannie is only one user/reader of appraisals. To use the C ratings on page one instead of plain language imo makes report less credible, it makes it a "Fannie centric" report, muddying comprehension by users/readers who are not code savvy. We are required to use the ratings on sales grid page by Fannie, yet here we have appraisers volunteering it on page one.

 

[YankeeFan]

Q4 means average whether I am talking about the overall rating or the quality of the flooring. Same with condition; C1 is new whether the total structure is new or just the roof. So the same definition applies in both cases. Some homes are a mish mash of quality of materials as well as a wide range of condition. So I am saying the same thing when I type Carpet/Tile /New or Carpet/Tile/C1. For example some houses will have the very cheap wood paneling on the walls instead of drywall that might be in very good condition. So instead of typing Wood Panels/Good I type Wood Panels / Q4 / C3. Q4 for the cheap type of paneling, C3 for being in very good condition. Since I started doing that I feel much more confidant in my overall ratings. And like I mentioned earlier, I haven't heard a single word from any AMC or lender, so I will keep doing this unless somebody gives me a very excellent reason to not do it.

OK, with all due respect Jo Ann...and I'm just trying to determine the appropriateness here mind you....I'm trying to figure this out too! do you indicate in your report comments you mentioned earlier that when you utilze Q4 on individual components in a UAD URAR report on page 1 that you define it to mean "average" then? Q3 = Good; Q2 = Very Good; Q1= Excellent and the same for C ratings for "individual component items? Because if it means average...then why not just use "average" you already have made the determination in your mind that conditions/quality equate to the UAD codes...yet Fannie Doesn't define these codes as "Average" Good, et cetera even though they may imply this in part in their definitions, they still dont literally say this? And mind you...I get how your trying to utilize these in this area...its a consistency thing...if Fannie wants it in one area...why the heck didn't they define it for the other areas where condition/quality is indicated? None the less, they still indicate it might not be appropriate in the individual components sections according to their FAQ.

 

[YankeeFan]

Q34. Do the condition and quality ratings apply to the interior and exterior description fields in the improvement and unit description section of the appraisal report?


No. The Q and C ratings only apply to the overall condition and quality of the subject property. Appraisers should complete the exterior and interior descriptions as they do today.

Bottom Line...after all this discussion...I dont see how one gets around this from Fannie Mae themselves. Its pretty clear now that I've read it a dozen times, "condition and quality ratings ONLY apply to the overall condition and quality of the subject property"...NOT the individual components thats what the question answers in clear concise language. I've made up my mind as to how I'm going to handle these situations from now on until Fannie issues a different conclusion. Thanks all...YankeeFan is Outta Here!

 

[J Grant]

I think following Fannie advice on this is best path plus it makes report more readable and makes sense as well....best of luck all

 

[Howard Klahr]

I haven't heard a single word from any AMC or lender, so I will keep doing this unless somebody gives me a very excellent reason to not do it.

Isn't this how appraiser's were ultimately attacked during discipline hearings during the buy-back phase of the downturn? Just because a report makes it through a review does not mean that it was properly prepared. Once again, Fannie Mae has specific instruction to not use the ratings in this manner. Not that you personally will ever have an issue having done so, it does not make it proper.