New market analysis changes.

[Sadie]

If you look at pages 15, 16 on the pdf i posted on FHA/fannie thread, updates there is an explanation. They say you don't need a chart, but it appears, from their example, that you have to explain each time adjustment. I'ts a bit too much. They then say there will be a further update in the next fannie news letter. Their written example of time adjustments looks like a non linear explanation. Not sure it can be done without a program.

Fannie is bad at providing examples, just go by their verbiage.

Non linear MC adjustments have, been around for a long time. As long as there has been data for it. No need to get all fancy with it, just explain what you did.

 

[Non Sequitur]

You've never reviewed an appraisal where the appraiser didn't adjust one sale but adjusted another? This is non-linear.

What the GSEs expect is Comp 1's adjustment shouldn't be a simple 3x1% math equation.

 

[CGinMN]

I don't see it that way. What they expect is that it's supported, and you summarize that support. The non-linear business is not a direction to appraisers, it is to prepare lenders for the possibility of seeing increasing on Page 1 with a downward time adjustment.

 

[Joe Flacco]

Look at this great tool from FB. Let's auto-adjust the summer and fall sales down 10-20%.

 

[CGinMN]

That's really awful. Unfortunately, even some of the most well-respected MAIs don't understand.

I took George Dell's class and this was the example he used.


Jim Amorin posted the following example

 

[Joe Flacco]

That's really awful. Unfortunately, even some of the most well-respected MAIs don't understand.

I took George Dell's class and this was the example he used.
View attachment 96374

Jim Amorin posted the following example
View attachment 96375

Absolutely correct. They don't understand. They don't understand the market and they don't understand the nature of the data they are analyzing.

 

[TerryRohrer]

I wrote they are "expecting" to see them. And I stand by that statement because of what I heard at the AMC Expo, and that chart in the missive wasn't included for fluff.

Their Bulletins were more a message to lenders that non-lonear adjustments could be appropriate. Their message to appraisers was to support what you did and explain it.

 

[shrubberyvaluation]

As far as I know, you and I are the only people that look at the data in a seasonal context.

Curious what are some of the advantages of this. If home prices are higher in April than they were in December why does it matter if its seasonal or not if the opinion of market value is for one specific date. They either increased, decreased, or stayed stable, why does it matter if its due to seasonal and/or other factors?

 

[shrubberyvaluation]

Fannie is bad at providing examples, just go by their verbiage.

Non linear MC adjustments have, been around for a long time. As long as there has been data for it. No need to get all fancy with it, just explain what you did.

Yea I started out by copying some of their verbiage in their selling guide to go along with my analysis.

 

[shrubberyvaluation]

View attachment 96372

Look at this great tool from FB. Let's auto-adjust the summer and fall sales down 10-20%.

FB is facebook? Where is that?