What condition rating

[glenn walker]

Correct.

From that class, I just rolled with it. I started using c's for REO and refis/purchases.

Based on what I posted from fannie faqs/q&a's.....I was wrong to do so.

We all make mistakes but you FD Up Biggley and your now on double secret Fannie Probation. The scary part is nobody's reading anything just popping off opinions. Lmao

 

[ZZGAMAZZ]

C3 says examples include "remodeled kitchen or bathrooms".

C4 says examples include "kitchen and bathrooms that are dated but fully functional".

So the question is does this kitchen that looks like it was remodeled 25 years ago count as a remodeled kitchen? Or is it now dated but fully functional?

Is your perspective trodding on the slippery slope that determines the Condition status on a "relative" basis compared to the neighborhood standard rather than an "absolute" basis. J.G. has cautioned me often about doing so, although it's difficult for me personally to kick the habit...

 

[Dale Floyd]

I can’t speak for NC, but at this point I’ll concede the documentation says not to use the GSE “C” ratings for the components. It says what it says.

But - FNMA told us differently some while back, and I’m not lying about that. I don’t think NC just made it up either, nor are the scores of other appraisers who have been doing it for years trying to just be rebels.

I still say the condition rating of the property falls back to the condition of its components, logically. I suppose I can still use C ratings created by me within the report that mirrors the ratings of the GSEs, and be in full compliance. That’s how insanely asinine these rules are.

 

[NC Appraising]

We all make mistakes but you FD Up Biggley and your now on double secret Fannie Probation. The scary part is nobody's reading anything just popping off opinions. Lmao

Biggley I tell you. Lol.

Been doing it this way since the 2014 fannie mae REO class. They must be building one heck of a case.

If freddie secret service comes a knocking I'll ask them about this:

1. If a property's overall rating could be C2, C3, C4, or C5 for Condition, but there is one item alone that could be rated a C6, how should the property be rated?
   The condition of the property should be determined holistically, and the best definition should be applied as the overall rating. However, the C6 rating is an exception because it indicates that the property suffers from trait(s) that negatively affect the safety, soundness or structural integrity of the improvements. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.

 

[Tom D]

As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.

Anybody here ever seen a c2,3,4 house with a c6 anything. Maybe a fire or water damage or a redo that wasn't finished.

To much concentration on the micro kitchen c3 or c4 condition here. Like it affects the overall condition of the subject, not. Typically, the micro matches the macro. But then, in older areas you can get a stew of kitchen, bath & decor different conditions. Guess it depends on your taste for that stew and what flavor you like.

 

[NC Appraising]

I don’t think NC just made it up either, nor are the scores of other appraisers who have been doing it for years trying to just be rebels.

What I posted was the actual email from fannie and the pdf attachment from fannie (course material).

I'm a pretty big stickler for following the guidelines. So when I took the REO class and the documents had c's in the improvement section, I changed how I did it. There was also a discussion in class about it. BUT, I take full responsibility becuse it was always in fannie q&as.

I also find it funny that we are suppose to be uniform..but nothing in uad or the guidelines that states how or what wording should be used to describe the condition of the components. Wild west.

 

[DWiley]

Anybody here ever seen a c2,3,4 house with a c6 anything. Maybe a fire or water damage or a redo that wasn't finished.

To much concentration on the micro kitchen c3 or c4 condition here. Like it affects the overall condition of the subject, not. Typically, the micro matches the macro. But then, in older areas you can get a stew of kitchen, bath & decor different conditions. Guess it depends on your taste for that stew and what flavor you like.

I recall one. The house was just a few months old, but the foundation had serious issues due to a sinkhole that opened up near the home shortly after the owners moved in.

 

[Tom D]

Did you call it a c6, or do it subject to. We got that here to, where the new rehab was done badly with a lot of problems after they moved in.

 

[NC Appraising]

Anybody here ever seen a c2,3,4 house with a c6 anything. Maybe a fire or water damage or a redo that wasn't finished.

To

As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6.

I take that to also read that other individual components can be C1-C5. C6 is a no go.

They should have used poor, fair, avg, etc. Contradicts their policy.

 

[DWiley]

One thing is certain in appraisal, and that is change. Some of what was written in the past was written before the emphasis on subjective wording. Hence, many used Good, Avg, etc. for condition of components without defining what they meant by those terms (and it is clear from posts here that different people can use those terms to mean different things).

The solution is to use whatever terms you wish, and include definitions to clarify the context of those terms, just as you include the definitions of the Cs and Qs.