"Predominant 1-Unit Housing Value"

[Dublin ohio]

I wonder if credit unions have underwriters who specialize in FHA loans?

Not sure how many credit unions are direct endorsment lenders. But if the are. Then they would be required to have an approved qualified underwriter

 

[gorillakimchi]

If you did not have or use the 1004mc What would you do/report on page one?

Here is another example. This one is just a rough draft I maintain and modify as needed for a Subject.

"
"The subject neighborhood is not homogeneous and contains a very wide variety of properties in multiple price points. The predominant price shown on page 1 indicates the mode (most frequently occurring variate in a data set) for the neighborhood and has nothing to do the the subject's relationship with the neighborhood or the relationship between the subject's value and the indicated predominant price. The subject's value is within the low-high price range for the neighborhood and does not automatically set the predominant. Although the Market Value is higher than the Predominant Price, there are several homes in the area in the price range of the subject. There are also many homes with similar GLA, therefore, the subject is not considered to be an over improvement for the area nor a marketability issue."

Wow, great answer. I appreciate your opinion!

 

[Dublin ohio]

----------------------
Oh Oh. A major disconnect exists . . . and whenever I encounter that scenario inevitably I'm wrong. (No denial here.)

Point being is that my understanding is that--although I don't agree with the premise--the "neighborhood" should be comprised only of competing properties rather than the entire 'hood.

[Consequently, my page 1 "neighborhood" data is based upon data reported in the 1004MC, as well as the top of page 2.]

If so, your comments about the disparity of neighborhood improvements--condition notwithstand--does not pertain.

Please advise.

Neighborhood price range is the whole neighborhood. Neighborhood trends needs to reflect 1004mc. This has been discussed as nauseam.

 

[Dublin ohio]

Wow, great answer. I appreciate your opinion!

Here is a shortened "canned comment" version. Works both for under and over improvement. Just change one word.

Subject's value opinion above predominant price for neighborhood. Does not indicate an over improvement. As predominant price represents prices within subject's overall neighborhood market which contains properties with various physical characteristics not necessarily representative of subject's sub market

 

[Fernando]

Neighborhood price range is the whole neighborhood. Neighborhood trends needs to reflect 1004mc. This has been discussed as nauseamI

I had one neighborhood with only 5 homes sold in past 12 months. You can't do a trend based on so few data.
The 1004MC allows a more general area to get more data so a trend can be analyzed.
Thus, the price range on first page does not have to match 1004MC.
Some reviewers still believe they should match.

 

[Dublin ohio]

The 1004MC allows a more general area to get more data so a trend can be analyzed.

That must be from the "Fernando" selling guide

 

[Carnivore]

That must be from the "Fernando" selling guide"

Well, the 1004mc has been and still is a problem. Specifically, there is confusion, and rightly so.

Forty(40) Pages that explain how to fill the dang thing out.

https://icapweb.org/uploads/Reporting_Market_Conditions_Final_V1.0_1418844119.pdf

Fernando does not have to worry about AMC Checker Dudes/Dudettes calling him out. They Focus on the Total number of sale in the 1004mc and it must match the total number at the top of Page 2. IHe is golden if those numbers match. LOL

 

[ZZGAMAZZ]

Here is a shortened "canned comment" version. Works both for under and over improvement. Just change one word.

Subject's value opinion above predominant price for neighborhood. Does not indicate an over improvement. As predominant price represents prices within subject's overall neighborhood market which contains properties with various physical characteristics not necessarily representative of subject's sub market

How about the following: " The Opinion of Value exceeds the Predominant Value to a large extent because protcol used to calculate the latter is based upon 12-month sales during a period of continually-increasing sales, which tends to skew the results downwards."

 

[gregb]

As George Dell says...its a cluster discussion

PreDominant Value: A Mean Modal Model? - George Dell, SRA, MAI, ASA, CRE

What is a predominant value? Is it the median, the mode, or the mean? Or could the predominant value possibly be the geometric mean or weighted mean? As it turns out, there are a couple dozen different ways to calculate a measure of center in data analytics. None of them are called...

georgedell.com

 

[alebrewer]

I wonder if credit unions have underwriters who specialize in FHA loans?

Any lender who originates FHA insured loans has to have a DE underwriter to underwrite those loans...