Fannie Mae Form 1004 Desktop

[J Grant]

Good Morning everyone!

It's been a long time since I've posted. I used to appraise, but now I work for a national builder managing their appraisal panel. I'm not going to say which one. Fannie Mae recently announced that Desktop appraisals will be an option for some loans beginning in March 2022. The fact sheet for lenders and appraisers provides high-level information about Fannie's requirements and answers to frequently asked questions. As it has been a while since I personally appraised, I want to get some feedback from those of you who are still active in the field.

What are your thoughts?

Builders typically have floor plans of their models on their online websites, seems like an appraiser can source a floorplan from there. Idk if the 1004 desktop is allowed for new construction or not

How does a builder get to manage their own appraisal panel ?> Lol rubber stamping builder prices must be a tough job for those "appraisers".

 

[Tiffany Gibbons]

Builders typically have floor plans of their models on their online websites, seems like an appraiser can source a floorplan from there. Idk if the 1004 desktop is allowed for new construction or not

How does a builder get to manage their own appraisal panel ?> Lol rubber stamping builder prices must be a tough job for those "appraisers".

The nationwide builders have their own mortgage companies, title service, etc. One stop shopping.

 

[Terrel L. Shields]

Often the County is way behind on updating, especially when it comes to new construction.

And that really depends upon county by county and often the vigorous pursuit of new tax money by a given assessor. I was shocked looking up a property in another county and although the house was 6 years old, it was still listed as bare ground by the assessor. Since our reassessment cycle is 3 years, there is no excuse for it being missed. Meanwhile a taxpayer got by saving several thousands until they get put it the books.

 

[TerryRohrer]

Builders typically have floor plans of their models on their online websites, seems like an appraiser can source a floorplan from there. Idk if the 1004 desktop is allowed for new construction or not

How does a builder get to manage their own appraisal panel ?> Lol rubber stamping builder prices must be a tough job for those "appraisers".

And yet FNMA and Freddie and FHA and the VA, etc, etc, etc, facilitate the games they are playing, all to keep their own cash cows fed.

 

[Terrel L. Shields]

Builders typically have floor plans of their models on their online websites

That might apply to Toll, Horton et al... but the builders here are mostly smaller outfits that may or may not have a website...and few that do provide any floor plans or only examples. They building what you want. This is a local, former MB turned contractor who went belly up in 2009. No website, maybe a FB page...I didn't see any floor plans. He's very typical around here. Small outfits using contract crews and managing the operations with only 1 or 2 projects at a time. DELETE
OOPS...wrong M4... I guess he doesn't even have a FB page.

 

[alebrewer]

How does a builder get to manage their own appraisal panel ?> Lol rubber stamping builder prices must be a tough job for those "appraisers".

I'm thinking he's talking about an in house mortgage company with ties to a builder. Something like DHI Mortgage.

 

[J Grant]

The nationwide builders have their own mortgage companies, title service, etc. One stop shopping.

Right, one strop rubber stamping "values" 0oops I meant prices.
Whether the builder owns or affiliates with a lender, same thing -
The FF enterprises allow it -imo there should be a separation between a builder sale and letting their "preferred lender" appraise it - a builders offer perks such as paid closing costs and upgrade packages to entice buyers to use their preferred mortgage lender - an appraiser for that lender would have a short career "killing" any of these deals...

 

[alebrewer]

Right, one strop rubber stamping "values" 0oops I meant prices.
Whether the builder owns or affiliates with a lender, same thing -
The FF enterprises allow it -imo there should be a separation between a builder sale and letting their "preferred lender" appraise it - a builders offer perks such as paid closing costs and upgrade packages to entice buyers to use their preferred mortgage lender - an appraiser for that lender would have a short career "killing" any of these deals...

Question: do you think the investors buying the loans from builder mortgage companies, and the enterprises that securitize those loans, are doing collateral diligence? Seems like the same collateral diligence rules would apply, regardless of whether the builder and mortgage company are associated, no?

 

[sputnam]

Wow... I have an idea. If you aren't provided with, or can't get, a reasonably credible floorplan... and a floorplan is required.... Decline or withdraw from the assignment.

 

[Carnivore]

Wow... I have an idea. If you aren't provided with, or can't get, a reasonably credible floorplan... and a floorplan is required.... Decline or withdraw from the assignment.

That's actually what you are supposed to do. You can not make a statement saying you could not blah blah blah, It's their problem not yours.