Questions on built up % - 1004 Neighborhood section

[Peter LeQuire]

That's not a bad set of descriptors, but it errs in that most suburban yards are not mowed by people walking behind mowers - they're riding them. Perhaps further research could refine them and relate the characterization of the neighborhood to the median width and/or HP rating of the mowers observed (+/- 1 SD).

 

[Carnivore]

fannie Mae selling guide gives guidance on how to determine Uban,suburban and rural

 

[Mile High Trout]

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Your questions are good ones. It's probably prudent to be ready with an answer if the question comes up from someone having nothing better to do that quibble about your application of nebulous guidelines. There are probably some appraisers who include their meaning of those terms in one of their addenda that nobody ever reads - I haven't done so yet, and it hasn't been a problem, yet.<>[/quote]
UAD is going to take that one over eventually as well. And with xml, such instances and entries are probably going to be tracked and aggregated some how.

Every single entry on the Fannie forms is now of vital concern for any appraiser who seeks to remain on the master approval list.

The master Fannie list sounds like the worst idea in this industry I've ever heard of.

Anything and everything data entry related will be checked for consistency against others, and any instances of unique or confusing reporting vs what the majority are reporting, will be met will punitive action and resistance.

The master blacklist sounds more like a way to eliminate the appraisal profession than anything else. They sat around and said; what was the most detrimental policy that appraisers experienced with lenders? Let's recreate that on the federal level!

All you'll need to give someone is an excuse. If you're reporting rural when others are suburban, could land you on probation. If you're reporting built up more, when others do not, you could land on probation.

Shouldn't Fannie assign us probation officers if we're going to be treated like criminals over these issues? We're beyond private process and into government process. I thought different rules applied.

 

[Mile High Trout]

You're going to be seeing a lot more of this I'd bet.

Rudimentary questions on basic process.

Just wait till the disapprovals start rolling in and heads start rolling.

The Fannie blacklist policy and panel management will be national.

What that means for us? There will be a full time staff dedicated to dealing with that.

They'll always need something to do so they don't lose their jobs.

They will find someone to punish, consistently, and indefinitely. They will never willingly relinquish their posh jobs, and they'll make things up and find data inconsistencies whenever and wherever, in order to maintain their position.

What appraisers did right or wrong, will have NOTHING to do with it.

The presumption that someone will need 'nothing better to do' is completely flawed. It will be someones sole task, to identify appraisers who don't roll with the common programs, pick them out and discredit them. Worst case scenario is they'll pick the best appraisers out who really do it right first, if the presumption that most of them don't do it right, is actually true. Food for thought. And that's all micro level theory as well. It won't matter if you do everything right except one thing. That's all they'll need to fill their monthly blacklist quotas and fill out their probationary request paperwork against independent contractors.

These new seiminars on the subject are interesting and I'll be taking them. But get serious; that's just a sales tool right now. We have yet to see the real thing in action. What was the last major step forward the big gov took, that actually worked well in this industry? The new fannie blacklist will be no different.

The Fannie Blacklist is a sad day for the independent appraiser. We should all re examine every little detail of process possible, to try and hold out against this for as long as possible.

 

[Mike Garrett RAA]

I fight lenders all the time on this. Seems they have investors who will not accept a property if it is rural. Tuff Crap! It is what it is.

Urban...in the city

Suburban...around the city but usually with municipal utilities

Rural...all else

Just did one 20 miles away from the metro area. Well, septic, gravel roads, on 10 acres. Lender insisted it was Suburban. NOT!!!!!

As to built up? If there are only a few vacant lots I call it 100%

 

[Doug Wegener]

New Fannie Mae Proposed Guidelines:

Rural: No pizza delivery
Suburban: Pizza delivery
Urban: Pizza delivery with driver with purple hair and a gun.

 

[Doug Wegener]

Suburban

I fight lenders all the time on this. Seems they have investors who will not accept a property if it is rural. Tuff Crap! It is what it is.

Urban...in the city

Suburban...around the city but usually with municipal utilities

Rural...all else

Just did one 20 miles away from the area. Well, septic, gravel roads, on 10 acres. Lender insisted it was Suburban. NOT!!!!!

As to built up? If there are only a few vacant lots I call it 100%

I don't use urban for small towns. It is all suburban in my opinion. Never been questioned about it.

There are areas outside of the city limits which I call suburban do to the close proximity of services like Walmart and Hospital, something like a 5 or 10 minute drive.

Admittedly a gray area and not a hill I want to die on.

 

[Craig in Oregon]

Exclude dedicated farm, ranch and timberlands (by zoning or development) and the percent of remaining buildable and available sites becomes more evident. Around here, much public domain in hills and mountains, much non-dividable farmland in the valley. Really helps the reader to understand if you exclude out the dedicated other uses which are not developable which in turn increases the built up land percentage.

Where I work we have a textbook example. Metro area of 200,000 plus population, surrounded by suburban mainly small 1 to 10 but also 50+ size acreages, with incorporated satellite cities 3 to 40+ miles out from the central metro area.
And a number of unincorporated communities in the 40 mile radius of the metro area also. Homes in these communities generally have wells, septics, but are near local schools, services, shopping.
It is possible to be suburban to the satellite cities without being rural to the metro area.
And out at the edges starts public domain or larger farm/ranch timberland properties.

As to Trout's points, yes, it would seem that way, if all appraisers are graded against each other, will the, for instance, as example, "more numerous" appraisers not doing it right outweigh the "more truthful and factual" appraisers? F and F are asking for a mess
it seems and they will get it. As has been said, appraisals are not commodities. A tranche of MBS is a commodity. I understand why F and F's investors want uniformity, can't happen
when the entire USA is not uniform. Just a thought.

As to Garrett's point on rural, do buyers in his example area consider 20 miles out reasonable commute distance to metro area and is the subject isolated or among similar 10 acre parcels where the owners commute to metro area? That's one of the considerations around here.
OK, out to the garden.