New proposed Fannie Mae form

[PropertyEconomics]

Unfortunately too many appraisers have been putting the full extent of their research on a 1004 for too many years. Since so many have spent years checking a box without doing any research, increased reporting requirements are needed. Once again we have Skippy to thank for making the job more difficult. Each report will require proof one knows the market.

I kinda like the requirements ... those that dont know how to do it or do it wrong .. will soon find themselves out of work. YEAHHHHHHH.

 

[CURT VAN HOOSER]

Call it a challenge it you want. :laugh: That's actually acceptable in debates.

Two reasons.

One, as mentioned first by Marcia, they may or may not actually happen.

Two, it skews the data when comparing to the same time frame in previous years. In other words it can make it appear that there were suddenly more recent 'sales' than there actually is. If you appraise in the same neighborhood next year, your analysis would show a different number of 'sales'.

I've done a great many retrospective reviews (yes, I know they all are but I'm using the term to mean years not days) and my method let's a potential review appraiser come up with the same numbers I did.

Those pendings are merely that, pending. They will be counted as solds when they are actually closed.

Sorry...I see your point. I couldn't understand why they would not be considered as "on the market." But, in review of the new form, they are lumping them with sales....

 

[CURT VAN HOOSER]

I kinda like the requirements ... those that dont know how to do it or do it wrong .. will soon find themselves out of work. YEAHHHHHHH.

Never under estimate the Cameleon-like power of Skippy....

 

[Dan Blanchard]

I accept residential appraisals when I don’t have another thing to do. Residential appraisals for lending purposes are 10 times more trouble than a residential home inspection and when all is considered, residential appraisals don’t pay a nickel more.

 

[Joyce Potts]

Invoke the ERC format and methodology FOR STARTERS.

 

[Bearslide]

Is there a list somewhere? What exactly is the litmus test used to classify one as an "honest appraiser?"

All the appraisers the mortgage brokers won't use? That list? Must be one somewhere - they keep threatening to put many of us on it!

 

[Couch Potato]

The folks at Bradford Technologies have posted a PDF of a new Fannie developed REO addendum. Seems there is no shortage of reasons to keep one's software maintenance agreement current.

 

[Riick]

That REO addendum only used in-part by Fannie itself.
No need to fill out the data on the listings, they get THAT as "Sales" # 4/5/6 - AI format makes that necessary.
Essentially they just want a formal place to show repairs, cost, and value as-is/as-repaired.
(( Not nearly as good as spreadsheet I developed years ago for same purpose - lol))
.

 

[Mike Kennedy]

Comparable Is Integral

Good idea but they are making the same mistake they did at the top of page two on the 1004. Take the word comparable out! That way the information will give a good overview of what is really going on in the subject neighborhood. Because of the word comparable, the skippies will just select those sales and listings that support what they chose to report.

I must respectfully, and totally, disagree.

Comparable i.e. similar / competitive based on substitution

For Example: When a subject is improved with a 3500sf custom built Contemporary Colonial btl in 2000 - market trends demonstrated by 700sf bungalows circa 1940 have no impact whatsoever as reliable indicators for that subject. The reverse is also true.

Apples to Apples v Pears to Pears - MATTERS.:icon_idea: Pineapples to Watermelons .......does not.

 

[Couch Potato]

That REO addendum only used in-part by Fannie itself.
No need to fill out the data on the listings, they get THAT as "Sales" # 4/5/6 - AI format makes that necessary.
Essentially they just want a formal place to show repairs, cost, and value as-is/as-repaired.
(( Not nearly as good as spreadsheet I developed years ago for same purpose - lol))
.

Although very similar to past forms, it is in fact a new form which is not yet released. Compatibility with such things as AI Ready may well be a primary cause of the development of the form.