MLS Comp Photos WTF!

[Workbox]

Cutting corners is cutting corners. What is next? Not going inside for a 1004? Not measuring? Inventing comps the make those low adjustments? Cheating is cheating. Cheating a little still makes you a cheater.

Then why are the AMC accepting them and you do no hear nothing about or did in the past 5 years? not even from the lenders, until now? The cheaters only do it because the dealers are accepting them or instructed them that it was OK. How many AMC told you it was OK to use MLS photos to to get the job done ASAP?

 

[Mike Kennedy]

Then why are the AMC accepting them and you do no hear nothing about or did in the past 5 years? not even from the lenders, until now? The cheaters only do it because the dealers are accepting them or instructed them that it was OK. How many AMC told you it was OK to use MLS photos to to get the job done ASAP?

Why? Fannie says b/w, photos from appraisers' files, AND MLS photos are acceptable. Fannie does not require original comparables PHOTOS - "she" does require "visual inspection of the comparables from at least the road". "She" can't state MLS pics are perfectly acceptable for desktop anythings and driveby guessings then turn around and state MLS pics are woefully inadequate and insufficient. If "she" did, investors and consumers would conclude they would no longer be acceptable for any appraisal (unless done by "Hal" her favorite AVhumm machine).

Rumor has it that Fannie hates looking ridiculous.:new_smile-l:

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Document Standards,
Report, and Property Inspections
April 1, 2009
Printed copies may not be the most current version. For the most current version, go to the online version at
http://www.efanniemae.com/sf/guides/ssg/. 441​

–

FANNIE SELLING GUIDE APRIL 2009 PG. 440

Exhibits for Appraisals with Interior and Exterior Property Inspections
The following exhibits must accompany appraisals with interior and exterior property
inspections:
• An exterior building sketch that indicates the dimensions
If the floor plan is atypical or functionally obsolete, thus limiting the market appeal for the
property in comparison to competitive properties in the neighborhood, Fannie Mae requires a
floor plan sketch.
• Calculations demonstrating how the estimate for gross living area is derived
For a unit in a condo or co-op project, the sketch of the unit must indicate interior perimeter
unit dimensions rather than exterior building dimensions (dimensions and estimates for gross
living area shown on the plat are acceptable)
• A street map that shows the location of the subject property and of all comparables that the
appraiser used.
• Clear, descriptive, original photographs showing the front, back, and a street scene of the
subject property and the front of each comparable sale. The subject and all comparables must
be appropriately identified. Photographs of comparable rentals and listings are not required.
Acceptable photographs include clear, descriptive, original images from photographs or
electronic images, copies of photographs from a multiple listing service, or copies from the​

appraiser’s files

PG. 441 Exhibits for Appraisals with Exterior-Only Property Inspections

The following exhibit is required for appraisals with exterior-only property inspections:
Street map that shows the location of both the subject property and the comparable sales and a​

photograph that shows the front scene of the subject property.

PG. 437

Lenders must upgrade to an interior and exterior appraisal inspection if an exterior only
inspection does not provide sufficient information about the property to perform the inspection.
For example, if the following conditions exist, the appraisal must be upgraded:
• the appraiser cannot adequately view the property from the street,
• apparent adverse physical deficiencies or environmental conditions are observed,
• the appraiser needs additional information about the physical conditions of the​

property.

 

[Lobo Fan]

If we are going to allow customers to dictate the standards then we get what we deserve. Mortgage brokers were removed from the loop because they promoted cheaters. If AMCs allow cheating then they will get banned from the process as well. Just because an AMC allows it does not get you past the certification.

 

[Mike Kennedy]

Lobo - the first para above - is the same as prior FANNIE guidelines issued.

I totally agree with you - those guidelines do NOT override the CERTS signed by Appraisers on Fannie Forms which require "inspection of comparables from at least the road" on Exterior and Interior Assignment.

For Non-GSE assignments ......the USPAP Ethics, Competency, SOW Rules prevail.

 

[Joyce Potts]

Fannie also allows sales within six months and within one mile which many appraisers took to mean it was OK to ignore the lower sale next door or across the street.

Ludicrous if not put in proper context.

 

[Carnivore]

Fannie also allows ...and within one mile...

There is no such thing as one mile in fannie or freddie. That is a urban myth. Perpetuated by a bunch of ninnie UW's.

 

[Mike Kennedy]

Part B, Origination Through Closing
Subpart 4, Underwriting Property
Chapter 1, Appraisal Guidelines, Appraisal Report Assessment
April 1, 2009​

Proximity to Subject Property and Location
The description of the proximity of the comparable sale to the subject property must be specific (for example, “two blocks south”).
Whenever possible, comparable sales in the same neighborhood as the subject property should be used. Sales prices of comparable properties in the neighborhood should reflect the same positive and negative locational characteristics.
Sales Price
The sales price of each comparable sale should be within the general range of the appraiser’s opinion of market value for the subject property.​

General Requirements
The table below provides general requirements for selecting comparable sales.
Requirement
Influences that may affect value based on market evidence—such as closed sales, contract sales, and offerings or listings of the most comparable properties for sale in the market area; market studies; etc.—must be researched, analyzed, and considered in the appraisal report.

A minimum of three comparable sales must be reported as part of the sales comparison approach to value.

More than three comparable sales may be submitted to support the opinion of market value provided at least three are actual settled or closed sales.

Properties that are not truly comparable to the subject property or are in competing neighborhoods are acceptable as comparable sales provided the reason for the use of these sales as comparables is adequately documented and explained.

The appraisal must include a discussion of how a competing neighborhood is comparable to the subject neighborhood.​

Note: In some situations, sales of properties that are not truly comparable or sales of properties that are located in competing neighborhoods may simply be the best comparables available and the most appropriate for the appraisal

analysis.


Requirement

Comparable sales that have been settled or closed within the last 12 months should be used in the appraisal.

Older comparable sales that are the best indicator of value for the subject property can be used if appropriate.​

Comparable sales that are more than six months old must be accompanied by an appraiser explanation for use.​

For example, if the subject property is located in a rural area that has minimal sales activity, the appraiser may not be able to locate three truly comparable sales that sold in the last 12 months. In this case, the appraiser may use older comparable sales as long as he or she explains why they are being used. The subject property can be used as a fourth comparable sale or as supporting data if it was previously sold and closed or settled. Contract offerings and current listings can be used as supporting data if appropriate. ​

Rural Properties

Rural properties often have large lot sizes and rural locations can be relatively undeveloped; therefore, there may be a shortage (or absence) of recent truly comparable sales in the immediate vicinity of a subject property that is in a rural location.
Comparable sales located a considerable distance from the subject property can be used if they represent the best indicator of value for the subject property. The appraisal must include an explanation of why the particular comparables were selected.​

 

[DTB]

If this issue was before the Florida Real Estate Appraisal Board, they would revoke his appraisal license, as they have done before when the appraiser did not personally drive by the properties used in Fannie form reports.

Other than including the incorrect MLS photo would would have been proof that the appraiser did not inspect from the street?

 

[Functional Obs]

Most appraisers who use MLS photos never bothered to drive by the comps. Period.

 

[PropertyEconomics]

Most appraisers who use MLS photos never bothered to drive by the comps. Period.

But Rickkkkkkkkkk ... we are only making $150 per report ..... we cant afford gas to drive the sales ..... wahhhhhhhhhhh..

Thats the excuse.