• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

One Form Or Both?

Status
Not open for further replies.

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
We've just received our download from alamode with the new Fannie Mae "Manufactured Home Appraisal Report Addendum". We've reviewed the form and analyzed the additional work necessary and decided what we will charge for this additional service. We have also decided to begin adding this addendum to all HUD Code house appraisals beginning July 1st unless the lender specifically states they do not want the form. This way, those loans that have not closed by the August deadline will have the addendum and there won't be a last minute rush of calls to get them added to the report and we won't have to bill the extra.

My question is this: If we add the 1004C, will the Manufactured Housing Check List still be required in the report?
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
The manufactured housing checklist is a specific lender required form. It will probably be up to each individual lender whether they want it or not. I would suggest leaving it out since we check "unknown" in most of it anyway and see how many requestsyou get for it. If you start gettting too many requests, just start including it everytime again.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Why would you want to include a lender's manufactured home check list if you have the 1004C in the package? I do not include a check list at this time and have not included one for years unless the client had a absolute hizzy fit. If I did, I wrote all over it that an appraiser does not have the expertise and is not qualified to answer most of the questions, answering the few questions that were applicable for an appraiser. Waiting anxiously for Day One/Nova to provide the 1004C, then I will start including it immediately also. Figure it will be good practice to get started as soon as possible.
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Page 13 of Fannie's 06-03 announcement says the 1004C will be required for "all manufactured home mortgage applications taken on or after August 24, 2003."

It is not required for any appraisals done for loans applied for before August 24, 2003. Wanna bet that the UWs will be greatly confused when they start seeing the form, before or after August 24th :question:
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
The Manufactured Housing Check List is a lender generated list based on Fannie Mae requirements for loans for manufactured housing. It's the old"Let's let the appraiser do it." I actually had a lender send me a check list, telling me that Fannie Mae will require this information after August 24th. Wrong form entirely.

There are certain items in the Check List that I can answer (certainly not if the footings are below the frost line). The 1004C does not cover all of the items in the Check List. Ergo, my question.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Well, I just completed a report and included the 1004C with no MH checklist. Where is the instruction book for this form? I used my Marshall & Swift info, but was kind of confused about the NADA section (gray page, yellow page, etc).

I know, I know. The new form is not required until 8/24/2003. But, I wanted to be ahead of the curve and smooth out any glitches before then. :eek:
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Richard said:

The Manufactured Housing Check List is a lender generated list based on Fannie Mae requirements for loans for manufactured housing. It's the old"Let's let the appraiser do it."

Richard,

There is no FNMA requirement that says we have to fill out a MH checklist. There is a new requirement for a 1004C. The key word is "requirement". No lender can make any of us fill out the Manufactured Home Checklist. It is not required. You can do it to please your lender, just make them aware they can't make you do it. They don't get what they want anyway because I know you check "unknown" on the Alamode form, too. So what good is the checklist anyway, if you are not checking the boxes the way they want? Make them ask for it. Tell them you can give it to them, but it will not have the answers they want and maybe avoid the conflict up front.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
The way I understand the cost approach on the 1004C is that either Marshall & Swift OR NADA can be used. So if M&S is used, then the NADA section would not be necessary. See #7 on page two--that sentence has "or" in it. Unless you wanted to compare the two sources for your own benefit. Would be interesting to see if you come up with the same answer! Also does Ala Mode transfer the information from the URAR to the 1004C? If it does, does the cost approach on the URAR transfer over to the cost approach on the 1004C and which blanks? Waiting anxiously for Day one!

The questions on the lender's checklist that are NOT on the 1004C would be questions that are not the appraiser's expertise or responsibility, the reason I hate lender's checklists! And as Tim says, Fannie Mae has not had a requirement for a check list in the past--they were just a bee in the bonnet of some lenders who didn't even know what they were asking.

By the way, Pier and Post on the form turns out to mean a pier OR a post on a pad or footing--that expression had me confused since I had never heard of Pier AND Post used to describe a foundation for a manufactured home. The question in my mind now with the form is where is the perimeter enclosure described? Majority of homes manufactured in Arizona are not supported by the enclosure/stem wall/skirt wall. The foundation that supports the unit is the piers of concrete, concrete blocks or steel jacks directly under the unit. The purpose of the enclosure is to give it the "characteristics" of site built and to keep out dirt and critters and is not part of the foundation support system.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Thanks, Jo Ann, that is exactly how I handled it. And no, the data did not transfer. I continually jumped back an forth to compare and match. One of the items I like most, but liked doing the least, was adding the land comps. I can see where that will put a bullet in some appraisers cost approach. It was interesting, to say the least. This one was a 1987 Oak Creek Home 27.5 x 72.2. If you use the Marshall & Swift Reproduction Cost figure for "average" you get a $25.22 cost per foot. That coupled with the land sales for for this river front lot ($48,000 using the lowest price per acre sold) brought up all the red flags many appraisers avoid by manipulating the cost appraoch. I had a 50% land to value ratio. I used the proper cost per foot (not the $60-65 per foot I see in my field reviews), the cost approach was in line with the sales comparison and the market supported all the red flags. I realy enjoy seeing forms that will give number hitters, number manipulators and fraudulent appraisers more hoops to jump through.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Incidentally, everyone should put the NADAguides.com link in the favorites.

http://www3.nadaguides.com/Values/ValueMan...wSec=7&wPg=1124

It can be very enlightening. This home showed a high sale value of $25,345. I enjoyed reading the "quality of construction" section too. Every manufactured home I have ever appraised, reviewed or seen has fallen into the "deluxe" and never the "luxury" category. We don't see porcelain sinks, steel tubs and other site built home qualities in our manufactured homes here, except in the model homes on the lots, but nobody ever seems to by that "quality".

I am still waiting to appraise that "luxury" model that all the other appraisers were told they were appraising.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks