URAR, Top Of Page 2

[TRESinc]

Seems to me that this is the very definition of not working, or at least not telling you anything that narrative would not. And the various responses from others suggests to me that underwriters in addition to appraisers are trying to use the MC form to actually divine some meaning from the data by expanding their market search area "neighborhood" if you will, so that it has some meaning. Otherwise, it becomes, as I said a "nothing burger" except perhaps force narrative to supplement the form, which begs the question. Why not explain the market forces and get rid of the MC? It brings exactly zero (or 0 - 0 if you prefer) to the analysis....oh, forgot. The computer cannot read narrative comments.

why do you think the 1004MC exists? it's because appraisers, in general, were not doing their job with regard to market research so of course if the form doesn't apply to the 20% or so of americans who live in rural areas a narrative is required.

 

[Digger88]

Page 1 neighborhood, and top of page 2 of the URAR must be consistent with the 1004MC. Announcement SEL-2010-09.

https://www.fanniemae.com/content/announcement/sel1009.pdf


If there are zero comps, their price range is zero to zero,


When completing the One-Unit Housing Trends portion of the Neighborhood section of the appraisal report forms, the trends
must be reflective of those properties deemed to be competitive to the property being appraised. If the neighborhood contains properties that are truly competitive (that is, market participants make no distinction between the properties), then all the properties within the neighborhood would be reflected in the One-Unit Housing Trends section. However, when a segmented or bifurcated market is present, the One-Unit Housing Trends portion must reflect those properties from the same segment of the market as the property being appraised. This ensures that the analysis being performed is based on competitive properties.

For example
if the neighborhood contains a mix of property types not considered competitive by market participants, then a segmented or bifurcated market is present. Additionally, the conclusions reported in this portion of the appraisal will be supported by the analysis contained in the Market Conditions Addendum to the Appraisal Report (Form 1004MC)

the appraiser should also provide commentary on the other segment(s) of the neighborhood when segmentation is present.
Market Conditions Addendum to the Appraisal Report (Form 1004MC)
The lender must confirm that current market conditions are identified and analyzed in the valuation process and described
in the appraisal report.

Form 1004MC is required for all mortgage loans delivered to Fannie Mae with appraisals of one- to four-unit properties. It is
intended to provide the lender with a clear and accurate understanding of the market trends and conditions prevalent in the
subject neighborhood. The conclusions regarding trends that are obtained from the 1004MC Form must be reported in the
Neighborhood section of the report form.

In situations when there is not sufficient data to provide a meaningful analysis for the defined neighborhood, the form must be completed based on the information available, and an explanation must be provided. The lack of data may be an indication of the market conditions. If additional analysis of nearby areas that include competitive properties is performed, it mustbe discussed in the summary/conclusions section of the form. In any scenario, the Neighborhood section of the appraisal report must include the appraiser’s conclusions regarding the housing trends.For additional information concerning Form 1004MC, see B4-1.2-01, Appraisal Report Forms and Exhibits (04/15/2014)
https://www.fanniemae.com/content/guide/sel050118.pdf

.
.

i posted that i make all the data consistent and was trashed for it a while back on here.

 

[Meandering]

i posted that i make all the data consistent and was trashed for it a while back on here.

What I posted was a copy and paste from the Fannie Mae selling guide. Your scope of work may vary. .

 

[djd09]

Like the newly founded appraiser inspectors, there is nothing wrong with, via third party, a market condition analysis. Right?

 

[TRESinc]

Like the newly founded appraiser inspectors, there is nothing wrong with, via third party, a market condition analysis. Right?

how do you get the data for your 1004MC reports?

 

[residentialguy]

The data portion on the 1004MC form is strictly for comparable properties within the subject's neighborhood. You've already stated what the neighborhood boundaries are on page 1 of the 1004. This data, as limited as it may be, is not allowed to be altered. If it is zero, then it is zero. The data is to match the top of page 2 above the SCA grid. Typically, the data is so small that it can not be a good indicator of trends. (which is to line up with page one, btw) Therefore, the 1004MC says that we need to expand our search parameters so that we can give a supported opinion when we check the trend boxes. What that means: you will have to expand the 1004MC to your additional comments where you show graphs, interviews, stats, etc to support your trend boxes that you checked. Note: this is in addition to the data on the 1004MC, which stays the same...strictly for comparable properties within the subject's neighborhood, which may look like the market is in decline, whereas in reality, your market is increasing and you check Increasing market.

Basically your comments on the 1004MC form will say> "due to the limited data of comparable properties, it is not a reliable indicator of trend. Therefore additional market studies were performed to support the market trend...see additional comments"

BTW, these "zeros" are not useless. This will support your need to expand your search area out of the neighborhood and back in time.

 

[Digger88]

The data portion on the 1004MC form is strictly for comparable properties within the subject's neighborhood. You've already stated what the neighborhood boundaries are on page 1 of the 1004. This data, as limited as it may be, is not allowed to be altered. If it is zero, then it is zero. The data is to match the top of page 2 above the SCA grid. Typically, the data is so small that it can not be a good indicator of trends. (which is to line up with page one, btw) Therefore, the 1004MC says that we need to expand our search parameters so that we can give a supported opinion when we check the trend boxes. What that means: you will have to expand the 1004MC to your additional comments where you show graphs, interviews, stats, etc to support your trend boxes that you checked. Note: this is in addition to the data on the 1004MC, which stays the same...strictly for comparable properties within the subject's neighborhood, which may look like the market is in decline, whereas in reality, your market is increasing and you check Increasing market.

Basically your comments on the 1004MC form will say> "due to the limited data of comparable properties, it is not a reliable indicator of trend. Therefore additional market studies were performed to support the market trend...see additional comments"

BTW, these "zeros" are not useless. This will support your need to expand your search area out of the neighborhood and back in time.

but marion just posted that FNMA says all data (p1, p2 and 1004mc) must match. arent you saying something different?

 

[ucbruin]

but marion just posted that FNMA says all data (p1, p2 and 1004mc) must match. arent you saying something different?

Pg 2 and mc must match...

 

[TRESinc]

but marion just posted that FNMA says all data (p1, p2 and 1004mc) must match. arent you saying something different?

what res wrote is exactly right. i didn't bother reading marion's post, but if what you say is correct then the information she posted is wrong, or you misinterpreted it.

the numbers on the top of the grid must match the numbers on the 1004MC; the overall trends of the 1004MC must match the overall trends in the neighborhood section.

 

[ucbruin]

The data portion on the 1004MC form is strictly for comparable properties within the subject's neighborhood. You've already stated what the neighborhood boundaries are on page 1 of the 1004. This data, as limited as it may be, is not allowed to be altered. If it is zero, then it is zero. The data is to match the top of page 2 above the SCA grid. Typically, the data is so small that it can not be a good indicator of trends. (which is to line up with page one, btw) Therefore, the 1004MC says that we need to expand our search parameters so that we can give a supported opinion when we check the trend boxes. What that means: you will have to expand the 1004MC to your additional comments where you show graphs, interviews, stats, etc to support your trend boxes that you checked. Note: this is in addition to the data on the 1004MC, which stays the same...strictly for comparable properties within the subject's neighborhood, which may look like the market is in decline, whereas in reality, your market is increasing and you check Increasing market.

Basically your comments on the 1004MC form will say> "due to the limited data of comparable properties, it is not a reliable indicator of trend. Therefore additional market studies were performed to support the market trend...see additional comments"

BTW, these "zeros" are not useless. This will support your need to expand your search area out of the neighborhood and back in time.

"Therefore, the 1004MC says that we need to expand our search parameters so that we can give a supported opinion when we check the trend boxes. What that means: you will have to expand the 1004MC to your additional comments where you show graphs, interviews, stats, etc to support your trend boxes that you checked."

This passage is confusing....
If this instruction is on the form, I can't find it....