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FNMA New Construction AMC Pressure

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Argentum

Sophomore Member
Joined
Sep 27, 2006
Professional Status
Licensed Appraiser
State
Texas
AMC ordered assignment for FNMA Lender - New Construction - They want another sale from outside the neighborhood. I have already provided 3 sales of which 2 were from competing builders.

Contract Price easily supported by opinion.

They came back telling me it is FNMA requirement.

Must I provide an additional sale outside the neighborhood when doing so may lead to misleading results as already stated in the report?

Is there such a requirement from FNMA?
 
Last edited:

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
Anyone doing Fannie work should keep a copy of the Selling Guide on their Desktop :)




Additional Requirements for New (or Recently Converted) Condos, Subdivisions, or
PUDS


If the subject property is located in a new (or recently converted) condo, subdivision, or PUD, then it must be compared to
other properties in the neighborhood as well as to properties within the subject subdivision or project. This comparison
should help demonstrate market acceptance of new developments and the properties within them. The appraiser must select
one comparable sale from the subject subdivision or project and one comparable sale from outside the subject subdivision
or project. The third comparable sale can be from inside or outside of the subject subdivision or project
, provided it is a good
indicator of value for the subject property. Two of the sales must be verifiable from reliable data sources, other than the builder.
Sales or resales from within the subject subdivision or project are preferable to sales from outside the subdivision or project
provided the developer or builder of the subject property is not involved in the transactions.

In the event there are no closed sales inside a new subject project or subdivision because the subject property transaction
is one of the first units to sell, the appraiser may use two pending sales in the subject project or subdivision in lieu of one
closed sale. When the appraiser is using two pending comparable sales in lieu of a closed sale, the appraiser must also use
at least three closed comparable sales from projects or subdivisions outside of the subject property’s project or subdivision.

To meet the requirement that the appraiser utilize one comparable sale from inside the subject subdivision or project, the
appraiser may need to rely solely on the builder of the property he or she is appraising, as this data may not yet be available
through typical data sources (for example, public records or multiple listing services). In this scenario, it is acceptable for the
appraiser to verify the transaction of the comparable sale by viewing a copy of the settlement statement from the builder’s
file.
 

Argentum

Sophomore Member
Joined
Sep 27, 2006
Professional Status
Licensed Appraiser
State
Texas
Awesome Thank You!

I've not done much for FNMA lately. Your response is appreciated!
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Awesome Thank You!

I've not done much for FNMA lately. Your response is appreciated!
You only do private appraisals and/or in house only loans? If you get an order from a client for a 1004 UAD form, that's a FNMA requirement order, unless they specifically tell you otherwise, (which in that case, you shouldn't use the new FNMA 1004 form)
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
am i understanding this correctly. you used 3 sales in the project, but 2 of them were by different builders. in that case i can understand the comp outside the project. maybe the builders have colluded to keep their prices close. maybe not. i would have gone outside the project, although in some areas the same large builder may have several projects in the area.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
The appraiser must select
one comparable sale from the subject subdivision or project and one comparable sale from outside the subject subdivision
or project. The third comparable sale can be from inside or outside of the subject subdivision or project
, provided it is a good
indicator of value for the subject property.
I understand the requirements. However, sometimes, in a small town, there may only be one new project and nothing around in other small towns that could be used as comps. Do we all just turn the job down???
 

BRCJR

Elite Member
Gold Supporting Member
Joined
Sep 20, 2005
Professional Status
Licensed Appraiser
State
Virginia
The question cannot be answered without an assumption being made.

Are you talking outside the neighborhood or the subdivision? They are different and would not necessarily have the same answer or guideline from FNMA.
 
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DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
I understand the requirements. However, sometimes, in a small town, there may only be one new project and nothing around in other small towns that could be used as comps. Do we all just turn the job down???
Not every loan is eligible for sale to Fannie. :) It is not the appraiser's job to make it eligible.
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
Not every loan is eligible for sale to Fannie. :) It is not the appraiser's job to make it eligible.
Do I take that to mean "yes"? Or do they make exceptions in cases like that?
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
OP "Contract Price easily supported by opinion."

? your opinion or was that a statement on the appraisal order?
 
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