Neighborhood Name

[TruJa]

Generally for the neighborhood name on the 1004, I stick with the best description of the area I can think of which describes the area which is technically a "neighborhood". I put something like the following into all of my reports, modifying it to fit as warranted:

The "neighborhood" by definition and for the purposes of analysis, is typically a different entity than a "PUD" or subdivision. The definition of "neighborhood" as defined by Appraising Residential Properties, 4th Edition references a neighborhood as a group of complementary land uses (i.e. more than 1 use (such as residential) is required to meet this definition). A typical PUD or subdivision does not meet this definition of a neighborhood, and often the neighborhood name is not named after the subject PUD or subdivision so as not to be misleading. The neighborhood area under analysis is often different from, and broader than the subject's PUD or market area. The neighborhood analysis was intended to provide sufficient analysis of the area which meets this definition (multiple complimentary uses) and to consider how the subject relates to this area as it can influence value and marketability. If available to the appraiser, the subject's project or subdivision name will be listed at the bottom of page 3 of the URAR form even if it is a detached unit due to this being a common request.

I've recently started getting revisions over and over stating something to the effect of, "...the neighborhood name needs to match legal, because it is in a PUD." Should I just give up the battle and put whatever they want in there?

I'm tempted to put "See Addendum" into all my reports for that field, and then provide 2 or 3 names depending upon whether it is the legal name of the subdivision, or the description of the neighborhood, or some other colloquial use of neighborhood that the reviewer is after.

I do occasionally use the PUD name if I think the PUD is the defining characteristic of the neighborhood....

What do you do?

 

[ZZGAMAZZ]

I was taught that the page 1 Neighborhood term was either formalized verbiage, or the name of the city if the former moniker did not exist, with the "neighborhood boundaries" to correspond accordingly if an entity smaller than the entire city is used. (But that was a decade before I was aware of FNMAE or HUD or USPAP standards.)

 

[ZZGAMAZZ]

Generally for the neighborhood name on the 1004, I stick with the best description of the area I can think of which describes the area which is technically a "neighborhood". I put something like the following into all of my reports, modifying it to fit as warranted:

The "neighborhood" by definition and for the purposes of analysis, is typically a different entity than a "PUD" or subdivision. The definition of "neighborhood" as defined by Appraising Residential Properties, 4th Edition references a neighborhood as a group of complementary land uses (i.e. more than 1 use (such as residential) is required to meet this definition). A typical PUD or subdivision does not meet this definition of a neighborhood, and often the neighborhood name is not named after the subject PUD or subdivision so as not to be misleading. The neighborhood area under analysis is often different from, and broader than the subject's PUD or market area. The neighborhood analysis was intended to provide sufficient analysis of the area which meets this definition (multiple complimentary uses) and to consider how the subject relates to this area as it can influence value and marketability. If available to the appraiser, the subject's project or subdivision name will be listed at the bottom of page 3 of the URAR form even if it is a detached unit due to this being a common request.

I've recently started getting revisions over and over stating something to the effect of, "...the neighborhood name needs to match legal, because it is in a PUD." Should I just give up the battle and put whatever they want in there?

I'm tempted to put "See Addendum" into all my reports for that field, and then provide 2 or 3 names depending upon whether it is the legal name of the subdivision, or the description of the neighborhood, or some other colloquial use of neighborhood that the reviewer is after.

I do occasionally use the PUD name if I think the PUD is the defining characteristic of the neighborhood....

What do you do?

---How weird though that if & when I receive a stipulation from Lender A, all-a-sudden the same stips arrive from Lender B & C & D.

 

[alebrewer]

I think that comes from the HUD Appendix D requirement for that field to contain the name of the subdivision. It's not an agency requirement, but underwriters tend to look for standardization between the agencies and FHA...

 

[ZZGAMAZZ]

I think that comes from the HUD Appendix D requirement for that field to contain the name of the subdivision. It's not an agency requirement, but underwriters tend to look for standardization between the agencies and FHA...

Curious: When you say "agency requirement," are you referring to FNMAE?

 

[TruJa]

I've read in a Freddie selling guide that an appraiser "may" use the project name. I haven't found a "must" yet. Can you point me to it so that I understand where the reviewer is coming from.

 

[alebrewer]

Agency is Fannie/Freddie. Here is the section from HUD's Appendix D (now retired):

"Enter the name of the subdivision, if applicable, or the commonly known local neighborhood designation. If the subject property is in a planned unit development, provide the name of the development."

I liked Appendix D because it spelled out what FHA expected for each field...

 

[TruJa]

Agency is Fannie/Freddie. Here is the section from HUD's Appendix D (now retired):

"Enter the name of the subdivision, if applicable, or the commonly known local neighborhood designation. If the subject property is in a planned unit development, provide the name of the development."

I liked Appendix D because it spelled out what FHA expected for each field...

I guess I still don't understand why the PUD name goes in the "Neighborhood Name" field when the analysis in the neighborhood section is for an area that is typically different than the PUD. I do see them requesting the colloquial neighborhood designation in that statement, but am left wondering what in the world the bottom of page 3 of the URAR is for.

 

[alebrewer]

That's a question for HUD or the agencies...

 

[ZZGAMAZZ]

I guess I still don't understand why the PUD name goes in the "Neighborhood Name" field when the analysis in the neighborhood section is for an area that is typically different than the PUD. I do see them requesting the colloquial neighborhood designation in that statement, but am left wondering what in the world the bottom of page 3 of the URAR is for.

You should review the thread about 2 months ago when distinctions between page 1, page 2, and the 1004MC was discussed. Took about 25 conflicting posts before concensus was achieved . . . either that or several posters just stopped posting...