"Quantifiable Market-Derived Methods" for adjustments required by FNMA/USPAP

[Fernando]

You better find something else to do, that's not going to cut it.

Lenders never asked me to provide graphs or excels. They rely on Fernando's expertise. Nando's appraisal intuition is priceless.

 

[J Grant]

This is a reminder regarding Fannie Mae’s appraisal requirements, effective for appraisals dated on or after March 1, 2025.

Fannie Mae updated their Selling Guide to emphasize the importance of analyzing comparable sales for any changes in market conditions between the contract date of the comparable sale and the effective date of the appraisal. Clients are reminded that when market conditions have changed, appraisers must make appropriate time adjustments, supported by evidence using any the following acceptable practices:

• The use of home price indices (HPIs)
• Statistical analysis
• Modeling
• Paired sales
• Other commonly accepted methods

Fannie Mae encourages the use of the tools listed above to provide credible support for market trends and conditions.

The appraisal report must include at a minimum:

• A summary of the supporting evidence for any time adjustments (or lack thereof); and
• A description of the data sources, tools, and techniques used.

Clients are encouraged to implement these requirements immediately, but must do so for appraisals on or after March 1, 2025. Failure to make market-derived time adjustments when indicated by market data is considered an unacceptable appraisal practice.

Please contact your Sales Representative with any questions.

My comment: It wasn't just me. The above is from the PennyMac website. The need to illustrate market conditions is referred to as a requirement by so many clients and continuing ed providers. Maybe hey are all wrong - idk but it here is evidence they view it as such.

 

[J Grant]

Miss Disinformation, it is hilarious that, as a a leading critic of AI, you rely on AI to mask your inability to read and comprehend plain English while defending the infallibility of your vast experience and apparently trying to justify your false statement referenced above. The fact remains that you lack the emotional maturity to post honestly, regardless of the topic at hand, and you would achieve much greater contribution by being silent on most matters herein.

This is a reminder regarding Fannie Mae’s appraisal requirements, effective for appraisals dated on or after March 1, 2025.

Fannie Mae updated their Selling Guide to emphasize the importance of analyzing comparable sales for any changes in market conditions between the contract date of the comparable sale and the effective date of the appraisal. Clients are reminded that when market conditions have changed, appraisers must make appropriate time adjustments, supported by evidence using any the following acceptable practices:

• The use of home price indices (HPIs)
• Statistical analysis
• Modeling
• Paired sales
• Other commonly accepted methods

Fannie Mae encourages the use of the tools listed above to provide credible support for market trends and conditions.

The appraisal report must include at a minimum:

• A summary of the supporting evidence for any time adjustments (or lack thereof); and
• A description of the data sources, tools, and techniques used.

Clients are encouraged to implement these requirements immediately, but must do so for appraisals on or after March 1, 2025. Failure to make market-derived time adjustments when indicated by market data is considered an unacceptable appraisal practice.

Please contact your Sales Representative with any questions.

The above is from the Penny Mac website

My comment to Terry - go f ....... your pretentious self. I am putting you back on ignore and I suggest that you put me on ignore.

 

[DWiley]

This is a reminder regarding Fannie Mae’s appraisal requirements, effective for appraisals dated on or after March 1, 2025.

Fannie Mae updated their Selling Guide to emphasize the importance of analyzing comparable sales for any changes in market conditions between the contract date of the comparable sale and the effective date of the appraisal. Clients are reminded that when market conditions have changed, appraisers must make appropriate time adjustments, supported by evidence using any the following acceptable practices:

• The use of home price indices (HPIs)
• Statistical analysis
• Modeling
• Paired sales
• Other commonly accepted methods

Fannie Mae encourages the use of the tools listed above to provide credible support for market trends and conditions.

The appraisal report must include at a minimum:

• A summary of the supporting evidence for any time adjustments (or lack thereof); and
• A description of the data sources, tools, and techniques used.

Clients are encouraged to implement these requirements immediately, but must do so for appraisals on or after March 1, 2025. Failure to make market-derived time adjustments when indicated by market data is considered an unacceptable appraisal practice.

Please contact your Sales Representative with any questions.

My comment: It wasn't just me. The above is from the PennyMac website. The need to illustrate market conditions is referred to as a requirement by so many clients and continuing ed providers. Maybe hey are all wrong - idk but it here is evidence they view it as such.

The requirement is:

The appraisal report must include at a minimum:​

• A summary of the supporting evidence for any time adjustments (or lack thereof); and
• A description of the data sources, tools, and techniques used.

Using charts and graphs is usually easier than pure narrative, but charts and graphs are not required. You are free to provide any type of summary that you wish.

 

[Zoe]

The requirement is:

The appraisal report must include at a minimum:​

• A summary of the supporting evidence for any time adjustments (or lack thereof); and
• A description of the data sources, tools, and techniques used.

Using charts and graphs is usually easier than pure narrative, but charts and graphs are not required. You are free to provide any type of summary that you wish.

yeah, Terrell like to use qualitative analysis sometimes (a/k/a ranking) with brief summary. If you have a chart or whatever in the workfile why not just print to pdf or or whatever and put it in the report. Please see attached for market condition adjustment with brief summary.

 

[Zoe]

But Terrell does some difficult rural properties. Dang geologist. LOL

 

[chad hampton]

Just write a paragraph that says based on published real estate data. This is what your market is doing. Doesn’t have to be so complicated. Make adjustments when the market is going up or down. Don’t make them when it’s stable. You’re an expert in your market, we all know what the market is doing.

 

[J Grant]

Just write a paragraph that says based on published real estate data. This is what your market is doing. Doesn’t have to be so complicated. Make adjustments when the market is going up or down. Don’t make them when it’s stable. You’re an expert in your market, we all know what the market is doing.

My experience is that since early 2025, whether it is a requirement or not, clients ask for an illustration, such as a chart of graph, if I make market condition adjustments - even if when I provide a paragraph, such as you suggest. They never used to ask fo it. One more task, but its not too time-consuming if we use our MLS to produce a chart and a printout of the sales used - I expanded my MC search a bit to get neough data for the MLS graph. There are other methods of course.

 

[chad hampton]

My experience is that since early 2025, whether it is a requirement or not, clients ask for an illustration, such as a chart of graph, if I make market condition adjustments - even if when I provide a paragraph, such as you suggest. They never used to ask fo it. One more task, but its not too time-consuming if we use our MLS to produce a chart and a printout of the sales used - I expanded my MC search a bit to get neough data for the MLS graph. There are other methods of course.

Fair enough, everybody deals with different clients I suppose. I don’t have any that asked for anything more than a paragraph. I also don’t work for any of these large AMC‘s anymore - at least not steady work from them. all my work are direct lenders, smaller AMCs , and a handful of mortgage brokers that email me directly or order through Mercury.

Part-time job for me, 8-10k a month.

 

[Zoe]

Fair enough, everybody deals with different clients I suppose. I don’t have any that asked for anything more than a paragraph. I also don’t work for any of these large AMC‘s anymore - at least not steady work from them. all my work are direct lenders, smaller AMCs , and a handful of mortgage brokers that email me directly or order through Mercury.

Part-time job for me, 8-10k a month.

I can't do that. I could go back into commercial and do it. I am on downhill slide. LOL

I wish I was 65 yrs old. I would slow down more.