"This appraisal must comply with secondary market guidelines"

[nb23yrs]

I understand, you present an appraisal on a FNMA form, and you need to follow FNMA's guidelines. However, in my market area, it's not unusual to have adjustments out of wack, distances out of wack, comparables with sale dates in excess of 1 year, etc, as every property in this area is very unique (due to rural area/resort influences). It used to be that these loans were kept "in house" as they didn't comply with FNMA. So, the question is, what is my responsibility to inform the client when I can't make the appraisal within FNMA guidelines?

What happens when the client sells the loan to FNMA, and FNMA makes them take it back because the appraisal is "out of wack"?

 

[J Grant]

Sorry but this comes across as a rather niave post. I do many FNMA bound appraisals with large adjustments or over a mile distances, especially when it is complex assignment and have never had an issue. If the adjustments are well explained they do not have to conform to guidelines to be accepted and acceptable.

If your adjustments are out of wack, yes you may have a problem and it has nothing to do with the guidelines.. Whether within guidelines or exceeding them, adjustments have to be derived from the market and credibly supported and well explained.

 

[Mike Kennedy]

1. Property&Appraisal Requirements for Small Towns and …
   
   appraisersforum.com/showthread.php?t=200470
   • Last updated: Mar 26, 2014 ·
   • 10 posts ·
   • First post: Mar 25, 2014
   Property&Appraisal Requirements for Small Towns and Rural Areas MAR 25 2014 - Fannie Mae, Freddie Mac, USPAP. Talk about Property&Appraisal Requirements …
   

https://www.fanniemae.com/content/announcement/ll1402.pdf

 

[Kim Whiting]

Welcome to the Machine............pink floyd....close the door now and say good bye to fannie.....or you will die....from the stress and heartache.

 

[Sid Holderly]

Small rural banks and banks with larger agricultural influences are holding more loans in house. I get a few that even state MC form and UAD is not necessary. Most that hold want the same format as FANNIE even if they do not resell. Most of the local banks are smart enough to know what they are going to find. The large regional and national banks and mortgage co's often do not have clue as to what an area market is.

 

[Jan Roseberry]

Problem is . . .

the people receiving this appraisals don't realize they don't meet Fannie/Freddie guidelines, submit them for purchase and the appraiser gets dinged.

I work the same type market (actually it may be the same market) and only solution I have found is to drop the customer. Best one I had was an appraisal on an over improved home, sent a note to bank that is was not going to meet secondary market guidelines. Two weeks later, got a request from national review firm (good one) to review my own appraisal. Bank is on my blacklist.

Remember the old check box for FHA/VA on the second page? I would love to see that on present URAR forms. OP states a very real problem for appraisers--just because the property does not meet secondary standards does not mean it is without value but that is what lenders think. There is a marketability adjustment when they don't meet the guidelines in this market. Many appraisals give an inaccurate valuation to meet standards which is not a true appraisal.

 

[Mike Kennedy]

Suggest reading the actual Fannie Guidelines posted above.

 

[Terrel L. Shields]

Suggest reading the actual Fannie Guidelines posted above

I recommend someone read the OP....

This appraisal must comply with secondary market guidelines"

Fannie may = secondary market, but secondary market does not equal fannie mae. It could be FHA, FmHA, VA, or even a private secondary market...

The secondary mortgage market is the market for the sale of securities or bonds collateralized by the value of mortgage loans

Therefore, what secondary market "guidelines" do we refer to? Fannie? FHA? ... I would request specificity about what guidelines and if by that they mean the guidelines in the general sense or the explicit adjustments that say fannie might aspire to.

If they require you to stay within those guidelines, then I think they have constricted the Scope of Work to the point it is time to turn down the assignment.

 

[Non Sequitur]

Suggest reading the actual Fannie Guidelines posted above.

That will never happen, it's just easier to blame Fannie for everything.

 

[Lee Lansford]

"Guidelines"?

"Guidelines" can be explained away when and where appropriate. The market giveth...what the market giveth .

"Assignment conditions" (aka, REQUIREMENTS of the assignment): These must be adhered to.

Some folks confuse "guidelines" as being one and the same with "assignment conditions" (requirements)--the two are NOT the same.