Fannie Mae Form 1004 Desktop

[CraigAVC]

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?

 

[alebrewer]

I just posted this on another thread:

Yes, but with the new F/F desktop assignments, the floorplans are now required to have interior walls... So, starting in March (after updates to DU), and depending on loan type (purchase, < 90% LTV, one unit property, etc.), DU may systematically select the 1004 Desktop as an option for appraisal reporting. If this happens, the appraiser is REQUIRED to have a floor plan with interior walls. Which begs the question: If the appraiser isn't doing a physical inspection, where is he/she going to get that floorplan with interior walls? From the homeowner? From a Realtor? From some kind of 3rd party 3D measuring app? And if appraisers are now required to adhere to ANSI, does that apply to whomever is sketching the floorplan? I know appraisers who can't do interior walls. How is the homeowner going to do that?

This should be VERY entertaining...

 

[MrLA]

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?

I am a new construction specialist for my area and work for a national builder as one of my main clients. I think I know who you are. For my main builder client, I can easily draw interior sketches. I will keep those on file. I am well organized so I can easily store all my sketches. Already done all the models, so it's easy to do the interior walls. Problem solved. Don't worry. I got you. I am a team player, so I can give my sketches to the sales team. They can hand those out to the outside appraisers. Another option is to cross reference the floor plans from the website for interior walls and have appraisers measure out the model homes for exterior measurements. If you read this it's "P" in V town in Cali. Just send me an email to discuss or have "J" send me an email. I am on this forum once every five years so this is just a coincidence. Lol

 

[rpierce13]

I just posted this on another thread:

Yes, but with the new F/F desktop assignments, the floorplans are now required to have interior walls... So, starting in March (after updates to DU), and depending on loan type (purchase, < 90% LTV, one unit property, etc.), DU may systematically select the 1004 Desktop as an option for appraisal reporting. If this happens, the appraiser is REQUIRED to have a floor plan with interior walls. Which begs the question: If the appraiser isn't doing a physical inspection, where is he/she going to get that floorplan with interior walls? From the homeowner? From a Realtor? From some kind of 3rd party 3D measuring app? And if appraisers are now required to adhere to ANSI, does that apply to whomever is sketching the floorplan? I know appraisers who can't do interior walls. How is the homeowner going to do that?

This should be VERY

I just posted this on another thread:

Yes, but with the new F/F desktop assignments, the floorplans are now required to have interior walls... So, starting in March (after updates to DU), and depending on loan type (purchase, < 90% LTV, one unit property, etc.), DU may systematically select the 1004 Desktop as an option for appraisal reporting. If this happens, the appraiser is REQUIRED to have a floor plan with interior walls. Which begs the question: If the appraiser isn't doing a physical inspection, where is he/she going to get that floorplan with interior walls? From the homeowner? From a Realtor? From some kind of 3rd party 3D measuring app? And if appraisers are now required to adhere to ANSI, does that apply to whomever is sketching the floorplan? I know appraisers who can't do interior walls. How is the homeowner going to do that?

This should be VERY entertaining...

“Data provided by parties with a financial interest in the sale or financing of the subject property must be verified by a disinterested source.” What verifiable resource is available for the floor plan /sketch other than an old appraisal. And in that case it would likely be a sketch only and not a floor plan.

 

[Terrel L. Shields]

New Construction - per-construction and not just a post-constructed new dwelling, are basically only bare ground. The depreciation is typically zero.

But many times we've found "new" built buildings have serious missing elements - appliances not a big issue. But when the AC isn't installed yet, the carpeting isn't installed, interior doors are leaned up against the wall, fixtures and lights not hung, etc. then an inspection should be made.

 

[sputnam]

Makes more sense for proposed or new construction than it does for existing improvements.

 

[Dublin ohio]

Makes more sense for proposed or new construction than it does for existing improvements.

What better floor plan could you have than construction drawings.

 

[Tiffany Gibbons]

What better floor plan could you have than construction drawings.

Fantastic, assuming you get the complete set of plans and specs, plot plan, etc. Which doesn't happen often. And builders are so on schedule, no weather concerns, no materials shortages (sarcasm). And who does the 1004D post construction exhibits and inspection, to to make sure that the actual house was built according to plan? Some unlicensed 3D scanner for the bank? County inspector? Even when doing assessment work, we used to find the wrong plan on the wrong lot all the time, during the days of "oversupply". Why do these people think builders are not building now without a qualified buyer on the hook? If builders have smartened up since 2008 why haven't lenders and Fannie Mae, etc? The Big Short, the sequel coming to a hot market near you...

 

[Dublin ohio]

Fantastic, assuming you get the complete set of plans and specs, plot plan, etc. Which doesn't happen often.

Never had a problem. You don't give me what I need. You get no appraisal. When I do a proposed construction or even one under construction. I ask for and receive all of the necessary documents. What does builder schedule, etc. have to do with a proposed construction appraisal.

 

[Carnivore]

I answered Yes. I can see some problems doing these from the desktop. On-Site Agents can be very busy at times. So your assignment might stall a bit collecting all the data. (more time involved.) . For example many On-Site Agents use representative exterior/interior photos in their listings. Subject Change orders can be common thus causing the Desktoppy Appraiser to make changes to the report. This occurs for 1004's so no biggie.

OTOH this can cause some problems with the S/D Comparable, The Listings are not always updated after the sale, so you don't know of changes that you might have seen driving by the comparable. Why don't they update the listings? No money in it because the primary reason they are on-site agents is to get more contracts to purchase. Worry about the details later if at all.

Another Point: Assuming your comparing Subject and even comparable data provided by an interested party to the transaction would require the DeskToppy Appraiser to verify/bump it against other sources aka County GIS. Often the County is way behind on updating, especially when it comes to new construction. Again we deal with this now for a 1004. Except that for a traditional 1004 we often become aware of new data before the County receives it or in the cases of when they do have it but haven't updated the GIS, if at all.

For FNMA/FreddieMac this is a daunting task to try and get ALL the GIS systems in the USA to get on the same page as they are. There are 100 Counties in the state of NC. That's 100 systems that you can't force them to do it the way FNMA wants it done. OTOH there is effort taking place across the nation to standardize GIS systems. Many of my counties can't make changes that fast and budget for the additional cost.

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