Feb 4th GSE requirements

[Digger88]

You don't have to buy anything. What you will have to do is support your opinions and conclusions within your appraisal report. Of course, there will be companies who make the job easier in exhange for some money. Remember though, USPAP doesn't support using 'black boxes'. The appraiser is required to understand how the analysis provided by the third party software is created. In other words, you could do it yourself... but, you choose to use the tool to save time.

I can see it now..

UW- Thank you for providing a detailed explanation of your methodologies and rationale in support of all your adjustments in the report. Please state how these methodologies and rationale were developed.

 

[Bobby Bucks]

More of the same, the Vegas gang and their copy cats are selling fear. Appraisal fear spam should have a separate filter in email systems. Tomorrow they’ll be back to selling CE courses, Distos and ads for their favorite E & O providers. They’re no better than carnival barkers.

 

[DWiley]

What now? What do we have to buy and include in our reports?

This has been in USPAP for a very long time



Given that market analysis has been a requirement, there should be no need to buy anything new.
The change is that the report must now contain that analysis.

The diagram included in the announcement was for illustration and discussion of the topic. There is no requirement to include a similar illustration. The requirement is to include the analysis that was done.

 

[Nancy Heiss]

CoreLogic, with reps from Fannie Mae has been doing some webinars "Future of UAD". I watched about 30 mins of one, but there was not anything of substance that I could point to as informative. I do recall hearing something about "market" area needing to be more defined (vs neighborhood). Anyone have input on the webinars or market area and what Fannie Mae is going to expect?

 

[Tom D]

Take a look at the thread 'This is a pretty niffty chart' for your feb 2024 answers, in the same fannie threads.

 

[sputnam]

This has been in USPAP for a very long time

View attachment 95316

Given that market analysis has been a requirement, there should be no need to buy anything new.
The change is that the report must now contain that analysis.

The diagram included in the announcement was for illustration and discussion of the topic. There is no requirement to include a similar illustration. The requirement is to include the analysis that was done.

Exactly

 

[Cob]

Are you making declining adjustments? Doesn't seem like the Texas metros would require any adjustments.

Where are you getting you information??? I moved from Austin to Buda, TX about 15 minutes away, I live i a LARGE subdivision, I moved in June 2022 and my subdivision has done nothing but DECLINE since I lived here, I protested my taxes last year down to $335,000, this year will probably be $300,000 based on the sales of similar properties to mine, that and Austin has seen HUGE declines in values over the past 2 years.

 

[Joe Flacco]

Where are you getting you information??? I moved from Austin to Buda, TX about 15 minutes away, I live i a LARGE subdivision, I moved in June 2022 and my subdivision has done nothing but DECLINE since I lived here, I protested my taxes last year down to $335,000, this year will probably be $300,000 based on the sales of similar properties to mine, that and Austin has seen HUGE declines in values over the past 2 years.

That's what I would expect. Declining or stable, nothing increasing.

 

[Terrel L. Shields]

Something wrong is not better than nothing. Anything wrong is worse than nothing.

fixed it

 

[Terrel L. Shields]

So, what parameters should be applied?

If I limit the sales to estimate a time adjustment to only those 20% above and below a benchmark, such as limit the sales to lots below or above a certain size SF a certain size, 2 story only, newer than X or older than X and winnow down the sales, don't I risk having two few sales and running into the margin of error problem?

So, what happens when I see listings selling in shorter times, more property changing hands, but prices falling ever so slightly, and building in the area increasing, is the market falling? Or, rising? So, isn't the safe answer, there is insufficient market data to support a fixed adjustment, but our bias is that the market is (increasing, decreasing) in price. "Price" is not the only indicator of market "conditions" (a rather stupid term for time adjustments in the first place.)