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Freddie Mac Appraisal guidelines???

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Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Hi All!!

Does anyone possibly know where one could find verbage regarding Freddie's appraisal guidelines?? Searched Freddiemac.com and found zippo except for a training center of sorts in which you sign up for scheduled online courses, bunches of info on underwriting the borrowers, and (Grrr) lots of reference to their AVM and 'no appraisal option'.

My situation is such:

Rural property in a barely beginning to recover area, but the reminants of damage still remain. ie. all sales comparables are bank owned units. Market data and economic/employment indicators for the area point to the bottom already being hit. The subject is a resale of a HUD REO at a grand total of $19,000. The MH is in good repair. I have 7 sales for the area, all manufactureds. Subject is a smallish DW. Only two of the 7 are reported to be in average or better condition. 1 sale is rated as fair/average of which I am sure as I did the REO appraisal. The remaining 4 sales are poor condition, 1 DW, 3 SW's. Nothing else near this remote location for approx. 17 miles.

Underwriter reports that Freddie guidelines state all sales comparables have to be in average or better condition. (?!) I've been long familiar with the requirement for the subject to be average minimum, but the comparables??? I've already written a lengthy addendum explaining the situation in clear, honest terms and gave a brief synopsis of when, how and why the decline took place as well as why I believe the 'bottom has been found'. I will go out of the area and provide a 'non comp' if absolutely necessary, but I really wanted to verify this Freddie requirement first.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Cat:

I don't do but 1 Freddie deal in 3+ years. Discovered on my most recent assignment that the guidelines are now ONLY available by purchase of the whole set, no links not online anywhere I could find, nada: so unless some kind person will look this up for you there IS no resource. Your best bet is to call the bank or several banks who sell thorugh Freddie. (none of which had guidelines when I asked...).

None of my local competition had a set, everyone uses Fannie regs even on Freddie forms 8O

I disclosed, stated my extensive efforts to comply with finding the Freddie 'rooles' :evil: and then told them I applied Fannie rules and did the work... :roll: . IF anyone HAS them please advise as I also WANT a set...
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
USED to be able to access them, but not anymore - guess the repos are adding up and they're trying to recover some losses with new fees. This is what I got when I just tried again after logging in at adfinet.com:

Attention ADFINET Customer
As of September 5th Freddie Mac will no longer allow you access to their guides!

As you probably already know, we have been notified by Paul Peterson at Freddie Mac that we will not be able to distribute the Freddie Mac Guides or Forms on our website. However, we will be able to continue to show the Freddie Mac Guides and Forms to our subscribers for the duration of their current subscription. As always, ADFINET will continue to provide you with accurate and timely information you have come to rely upon in order to succeed in the mortgage industry. REMEMBER FREDDIE MAC USERS, YOU ONLY NEED TO ORDER THE FREDDIE MAC GUIDE FROM FREDDIE MAC'S VENDOR! All the other regulations including Fannie Mae, FHA, VA, Ginnie Mae, and all the compliance manuals will still be available right here at www.ADFINET.com. Thank you for making ADFINET one of the most popular mortgage websites. We appreciate you very much!
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Hey Ladies!!

Well, the more I find out about this, the more steamed I'm getting. Pam, if your thoughts on the losses incurred from repos were true, I could almost understand charging for their precious guidelines. The reality appears otherwise. Their website touts the 'record earnings' reported, AVM creation, and no appraisal options. Well Spiffy. You don't need no stinkin' appraisers. Fine. But the audasity to restrict access to their guidelines when they do need us. Starve those stupid appraisers then charge them so's they know what we want. BS!!!

They have some sort of rating scheme where properties are analyzed in a 400-600 scale along with LTVs, and other pertinents. From this, they purport to be able to tell if a certain number of appraisals are inflated. HUH?? I'm no stat wizard, but I would bet Austin could have fun with it.

So, in absence of having the real guidelines to refer to, I have resorted to quizzing underwriters, appraisers and LO's I know. All concur, this underwriter has first base and her backside confused. She is the one holding up the deal with a perfectly good report in hand. 'Just get another comp.' Sure Lady, I'll go out of the area for Comp 4. Comp 1 stays, thank you very much. Until you can quote me line item and page where it states 'All sales need to be average', I have no basis for leaving the area by what is turning out to be 30 miles for another sale and removing one that is a mere skip across a 2 lane highway from my subject. I'm the one with a license to protect, and it appears I have to pay for the privledge of benefit to information which I am supposed to abide by.
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Update,

Loan Prospector's Customer Service was were I finally found the information needed this AM.

I'm not sure of the exact situation in all cases, but it sounds as though each lender has an agreed set of 'guidelines' negotiated between themselves and Freddie. What I was told was the specific language was the '...the comparables need to be considered like the subject property..' Everything is left rather grey and up to the lender's call. So it becomes a judgement call in this case as to whether a unit nearby in need of $3500 of repair on a $13000 sale price is more like the subject than a unit 30 miles away with no repairs. Sounds to me like we need to explain, document, CYA, and just generally use our own good judgement in these type cases.

If anyone is interested in having access to Freddie guidelines, our only source would be the All Regs subscription which I believe is a minimum of $99 per year. This All Regs info can be accessed at Freddiemac.com under the Doing Business tab.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Caterina:

I was told by a USPAP instructor one time that the reason secondary market guidelines are not made readily available to us is because they are developed for the lenders, not appraisers. Go figure.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
SNERF...

And they send out orders saying we agree to comply :roll:

I get a little testy with a few companies which send orders indicating supplimental requirements to comply with thier individual company directives. I find it interesting that so many get testy when you ask them to send those directives :roll:
 

Caterina Platt

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Mexico
Larry,

Screwy isn't it? The business is not designed with we appraisers in mind, which is fine. We're not supposed to be at the center of the focus, but gosh guys, maybe you could accomodate just a bit??? It would be nice to know just which hoops I'm supposed to jump through and keep my license in the meantime.

I think that's what makes me the angriest. It's my license, and by God, I'd better have that E & O to cover them as well. But a look at the play/rule book?? Nope can't do that Mr./Ms. Appraiser.
 
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