Letter From FNMA 'Baptist' can't be in report...

[djd09]

Neighborhood Analysis​

Fannie Mae requires the appraiser to perform an objective neighborhood analysis by identifying neighborhood boundaries, neighborhood characteristics, and the factors that affect the value and marketability of properties in the neighborhood.

• Neighborhood boundaries. The appraiser should provide an outline of the neighborhood boundaries, which should be clearly delineated using ‘North’, ‘South’, ‘East’, and ‘West’. These boundaries may include, but are not limited to streets, legally recognized neighborhood boundaries, waterways, or other natural boundaries that define the separation of one neighborhood from another. Appraisers should not reference a map or other addendum as the only example of the neighborhood boundaries.
• Neighborhood characteristics. These can be addressed by the types of structures (detached, attached) and architectural styles in the neighborhood (such as row or townhouse, colonial, ranch, or Victorian); current land use (such as single-family residential, commercial, or industrial); typical site size (such as 10000 sf, or 2.00 ac); or street patterns or design (such as one-way street, cul-de-sac, or court).
• Factors that affect the value and marketability of properties in the neighborhood. These can be addressed by such things as the proximity of the property to employment and amenities, appeal to the market, changes in land use, access to public transportation, and adverse environmental influences.

The appraiser must fully consider all of the value-influencing characteristics in the neighborhood and arrive at an appropriate neighborhood description and opinion of value for the property, even if this requires more extensive research for particular property types or for properties in certain geographic locations.

An appraiser must perform a neighborhood analysis in order to identify the area that is subject to the same influences as the property being appraised, based on the actions of typical buyers. The results of a neighborhood analysis enable the appraiser not only to identify the factors that influence the value of properties in the neighborhood, but also to define the area from which to select the market data needed to perform a sales comparison analysis.

In performing a neighborhood analysis, the appraiser

• collects pertinent data,
• researches the neighborhood to identify physical characteristics and determine its boundaries, and
• identifies land uses and any signs that the land uses are changing.

Fannie Mae expects the appraiser and the lender’s underwriter to be aware of the varying conditions that characterize different types of neighborhoods. Conditions that are typical in certain neighborhoods may not be present in other neighborhoods. This does not mean that the existence of certain types of conditions or characteristics are unacceptable; rather, it is an indication that they must be viewed in context with the nature of the neighborhood in which the security property is located. For example, some neighborhoods consist of a variety of property types that have different uses. It is not uncommon to find properties that have mixed-uses, such as residential properties that also have child-care facilities, doctor or dental offices, and other types of business or commercial uses. The presence of mixed-use properties or a variety of property types within a neighborhood should be viewed as a neighborhood characteristic that the appraiser considers when performing the neighborhood analysis and describing the neighborhood boundaries.

The appraiser must consider the influence of market forces, including economic, governmental, and environmental factors on property values in the neighborhood. Economic forces that must be considered include such things as the existence of vacant or boarded-up properties in the neighborhood and the level of essential local support services. Examples of governmental forces that should be taken into consideration include the regulations, laws, and taxes that are imposed on properties. Environmental forces that must be considered include, among other things, the existence of a hazardous waste site on or near the property, the proximity of a property to an airport, or the Federal Emergency Management Agency (FEMA) designated flood zone in which the property is located. Characteristics that are not appraisal factors must not be considered in the valuation process either partially or completely. These characteristics include a person's sex, race, color, religion, disability, national origin, or familial status. Also, no reference to any protected class of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property should be considered or reported.

The appraiser must determine, analyze, and consider factors in the valuation process based on their identification of all forces or factors that have the potential to influence the value of the property. The appraiser must report neighborhood conditions in factual, specific terms and be impartial and specific in describing favorable or unfavorable factors in a neighborhood. If an appraiser can demonstrate by market evidence that a characteristic has an effect on the value or marketability of the properties in the neighborhood, they must consider it in the valuation process. The appraiser must not make unsupported assumptions or interject personal opinion or perceptions about market forces or other factors that may or may not affect the use and value of a property.

B4-1.3-03, Neighborhood Section of the Appraisal Report (11/06/2024)

This topic contains information on reviewing the Neighborhood section of the appraisal report form, including:

selling-guide.fanniemae.com

dang if you do...dang if you dont

 

[shrubberyvaluation]

This still isn't a 1A issue. You are writing reports for lenders who are required to comply with fair lending, ECOA and civil rights law. This isn't the public square.

If a lender has the right to "not accept" an appraisal report with ANY term they have banned in an attempt to comply with the law then the question at hand becomes a matter of how many such terms can they reject.

At what point does it make the report misleading.

 

[djd09]

This still isn't a 1A issue. You are writing reports for lenders who are required to comply with fair lending, ECOA and civil rights law. This isn't the public square.

If a lender has the right to "not accept" an appraisal report with ANY term they have banned in an attempt to comply with the law then the question at hand becomes a matter of how many such terms can they reject.

slowly...congress shall pass no law prohibiting or abridging the free exercise of

 

[Fernando]

Hard to imagine, but during client's checking software, I would be warned of certain words in my report that they consider inappropriate.
It's just a stupid computer and is programmed to point out questionable words.
Usually, I look at my words and see no problem and push the report back to lender.
Never had a problem and no whining.

 

[Terrel L. Shields]

The church must get lots of donations and I assume from government.

zero comes from governments legally.

But get you to Texas and find a good old fashion Baptist or Methodist potluck dinner - especially Missionary Baptist black church or African Methodist Episcopal and we'll convert you. If vegan, then Saturday attend a Seventh Day Adventist potluck. They have vegan burgers and a bean "meatloaf" that cannot be beat. Or go to a Lutheran social down in German settled areas and enjoy an afternoon beer social.

BTW, no state celebrates Thanksgiving more than the churches of Texas who will have a free Turkey dinner for Thanksgiving in most every town, even the smallest of burgs.

 

[George Hatch]

At what point does it make the report misleading.

What would be misleading about it if the OP had framed the sentence without using the specific term?

"The subject neighborhood abuts the south side of the 117 acre SBU campus. There are a significant number of student housing rentals in this neighborhood......"​

​

"The subject site is located on the n/w corner of E. Northern Pkway and a residential side street." ​

(avoids the use of the street name "Churchwardens St")​

 

[George Hatch]

slowly...congress shall pass no law prohibiting or abridging the free exercise of

Tell you what, sue the federal govt for their fair lending and civil rights laws being unconsitutional and let me know how that works out for you.

 

[djd09]

go save jg...what happened to that thread deleted

 

[Fernando]

Neighborhood Analysis​

Fannie Mae requires the appraiser to perform an objective neighborhood analysis by identifying neighborhood boundaries, neighborhood characteristics, and the factors that affect the value and marketability of properties in the neighborhood.

• Neighborhood boundaries. The appraiser should provide an outline of the neighborhood boundaries, which should be clearly delineated using ‘North’, ‘South’, ‘East’, and ‘West’. These boundaries may include, but are not limited to streets, legally recognized neighborhood boundaries, waterways, or other natural boundaries that define the separation of one neighborhood from another. Appraisers should not reference a map or other addendum as the only example of the neighborhood boundaries.
• Neighborhood characteristics. These can be addressed by the types of structures (detached, attached) and architectural styles in the neighborhood (such as row or townhouse, colonial, ranch, or Victorian); current land use (such as single-family residential, commercial, or industrial); typical site size (such as 10000 sf, or 2.00 ac); or street patterns or design (such as one-way street, cul-de-sac, or court).
• Factors that affect the value and marketability of properties in the neighborhood. These can be addressed by such things as the proximity of the property to employment and amenities, appeal to the market, changes in land use, access to public transportation, and adverse environmental influences.

The appraiser must fully consider all of the value-influencing characteristics in the neighborhood and arrive at an appropriate neighborhood description and opinion of value for the property, even if this requires more extensive research for particular property types or for properties in certain geographic locations.

An appraiser must perform a neighborhood analysis in order to identify the area that is subject to the same influences as the property being appraised, based on the actions of typical buyers. The results of a neighborhood analysis enable the appraiser not only to identify the factors that influence the value of properties in the neighborhood, but also to define the area from which to select the market data needed to perform a sales comparison analysis.

In performing a neighborhood analysis, the appraiser

• collects pertinent data,
• researches the neighborhood to identify physical characteristics and determine its boundaries, and
• identifies land uses and any signs that the land uses are changing.

Fannie Mae expects the appraiser and the lender’s underwriter to be aware of the varying conditions that characterize different types of neighborhoods. Conditions that are typical in certain neighborhoods may not be present in other neighborhoods. This does not mean that the existence of certain types of conditions or characteristics are unacceptable; rather, it is an indication that they must be viewed in context with the nature of the neighborhood in which the security property is located. For example, some neighborhoods consist of a variety of property types that have different uses. It is not uncommon to find properties that have mixed-uses, such as residential properties that also have child-care facilities, doctor or dental offices, and other types of business or commercial uses. The presence of mixed-use properties or a variety of property types within a neighborhood should be viewed as a neighborhood characteristic that the appraiser considers when performing the neighborhood analysis and describing the neighborhood boundaries.

The appraiser must consider the influence of market forces, including economic, governmental, and environmental factors on property values in the neighborhood. Economic forces that must be considered include such things as the existence of vacant or boarded-up properties in the neighborhood and the level of essential local support services. Examples of governmental forces that should be taken into consideration include the regulations, laws, and taxes that are imposed on properties. Environmental forces that must be considered include, among other things, the existence of a hazardous waste site on or near the property, the proximity of a property to an airport, or the Federal Emergency Management Agency (FEMA) designated flood zone in which the property is located. Characteristics that are not appraisal factors must not be considered in the valuation process either partially or completely. These characteristics include a person's sex, race, color, religion, disability, national origin, or familial status. Also, no reference to any protected class of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property should be considered or reported.

The appraiser must determine, analyze, and consider factors in the valuation process based on their identification of all forces or factors that have the potential to influence the value of the property. The appraiser must report neighborhood conditions in factual, specific terms and be impartial and specific in describing favorable or unfavorable factors in a neighborhood. If an appraiser can demonstrate by market evidence that a characteristic has an effect on the value or marketability of the properties in the neighborhood, they must consider it in the valuation process. The appraiser must not make unsupported assumptions or interject personal opinion or perceptions about market forces or other factors that may or may not affect the use and value of a property.

B4-1.3-03, Neighborhood Section of the Appraisal Report (11/06/2024)

This topic contains information on reviewing the Neighborhood section of the appraisal report form, including:

selling-guide.fanniemae.com

dang if you do...dang if you dont

My canned comments usually cover it. Just customize the neighborhood boundaries.
Not really a big issue.

 

[djd09]

My canned comments usually cover it. Just customize the neighborhood boundaries.
Not really a big issue.

and dont forget to include the census tract number...