Feb 4th GSE requirements

[Phlyguy]

Hmmmmmmm...... Isn't the 1004MC addendum acceptable? After all, Fannie Mae did name it the Market Condition Addendum.

I still include it and consider the grid to be an illustration.
I have always included the details of my market study and figure the 1004mc is as good a place as any to do the writing. I do a narrative, including overall town data from Banker and Tradesman and then MLS data focused on the subject’s market- as well as the MC grid focused on the same subject market parameters.
I usually have very small sample sizes (and that is what I wish the GSE’s would address) so will take all of the info in aggregate to arrive at my conclusions.

 

[rgmmike]

My biggest hang up with the provided chart is that they base it on data up to the effective date. No data I use goes up to the current date. It is usually published a week or two after the previous month has ended. you know, so that they can have an entire months worth of data and not have to publish new trends every single day?

 

[Alsie35]

My biggest hang up with the provided chart is that they base it on data up to the effective date. No data I use goes up to the current date. It is usually published a week or two after the previous month has ended. you know, so that they can have an entire months worth of data and not have to publish new trends every single day?

You can only use what you can use. Go up to the last available date.

 

[TerryRohrer]

My biggest hang up with the provided chart is that they base it on data up to the effective date. No data I use goes up to the current date. It is usually published a week or two after the previous month has ended. you know, so that they can have an entire months worth of data and not have to publish new trends every single day?

For 35 years, I have routinely adjusted to only the most recent contract date of the relevant data I have available, whether in residential, commercial, or agricultural appraisals. My explanation is that there is no basis to conclude that market conditions have changed between that date and the effective date of my appraisal. I have never been challenged on my market conditions adjustments. Of course, I don't take shortcuts and limit the data I consider, and I make sure that it is unlikely someone can weaken my case with "what about this" questions. If you consider what is available and draw conclusions from that, what are the detractors going to do? Rely on data that doesn't exist to refute your conclusions? Any appraiser should be able to hit that softball!

 

[Carnivore]

You're joking, but if nothing else - this new edict has forced a lot of appraisers to dip their toes in the statistics world - and that's a good thing.

Yes, this is A paradigm shift for many appraisers. a major change in how people think and get things done that upends and replaces a prior paradigm. A paradigm shift can result after the accumulation of anomalies or evidence that challenges the status quo, or due to some revolutionary innovation or discovery.

The shift for many appraisers excluding the regular members here is is not in development the shift is in reporting. I hope anyway.

 

[TerryRohrer]

The shift for many appraisers excluding the regular members here is is not in development the shift is in reporting. I hope anyway.

I think you will be disappointed. So far, the conversations have largely focused on "what software do I need to buy so that I can push a button and cut and past an illustration." There is a decades worth of debate needed over how to account for differences in product mix and how or if the contributory value of amenities change over time, and how well, or otherwise, changes in median prices or average prices isolate residential inflation rates (they don't). But I expect those debates will not rise to any significant part of the conversation.

 

[alebrewer]

Yes, this is A paradigm shift for many appraisers. a major change in how people think and get things done that upends and replaces a prior paradigm. A paradigm shift can result after the accumulation of anomalies or evidence that challenges the status quo, or due to some revolutionary innovation or discovery.

The shift for many appraisers excluding the regular members here is is not in development the shift is in reporting. I hope anyway.

I wish you were right, but I'm afraid there's going to be a lot of scrambling on the development side as well.

 

[OSU Beavers]

Sending my first report off with new fancy charts. Wish me luck.

 

[RustyTapeMeasure]

If an appraisal is done properly, not every adjustment will have a mathematical equation or statistical analysis to go along with it.

Well your comment is reality, sadly underwriting, lenders, GSE guidelines are not about reality, truth to support and endpoint goal, etc....Then you get some of the appraisers I know who just make most all of it up. One just schooled me this morning, I have sent them links to all this recent Feb 4th changes ( since Nov '24) They tell me today, they will not be asked for anything in their reports to justify timing adjustments. That there should never be a requirement to support why you made NO timing adjustment...Even if I say, well a non or zero timing adjustment would need the same support for why you made that decision just as if you were making positive or negative...... This guy also is faking his EnO.....lol. Amazing he has not been caught yet. I remember a few appraisers, old school recession, market doldrums mid 90's Southern Calif and these goofs used liquid paper to change exp dates on EnO....got caught. Anyway, not sure what my new career will be, glad I saved some money to last the past few years but yeah NO, on the current appraisal industry, waivers, hybrids, do tons more work for far less $$.

 

[OSU Beavers]

Two reports sent with fancy Synapse sales market adjustments results image and TrueTracts timetrend graph. Both passed Wells Fargo and US Bank QC.