Would Adding A 1004mc To A Completed Appraisal Comply With USPAP?

[Have Laser-Will Travel]

Where did you come up with those numbers for listings and sales on the top of Page 2, where you gave a count, and price range?

Those numbers and from the results of my search for comparables. I did not use them as a basis of analysis for market trends. For example, not included in those numbers are things such as absorption rate or seller concessions...and the 1004MC groups results differently and so on.

There are an infinite number of statistical models that can be used and any analysis is not exhaustive. If I've complied with the Scope of Work Rule, I've done appropriate analysis. To change that scope could change the report results. So if I am being asked to include new information, I will have to reconcile it with the original scope results and reflect any impact on my conclusions, which sounds like a new assignment. If I just tag it onto the old report and don't give it any weight, I believe that could be misleading to a secondary user, such as FNMA.

 

[Have Laser-Will Travel]

Where did you come up with those numbers for listings and sales on the top of Page 2, where you gave a count, and price range?

Those numbers are from the results of my search for comparables. I did not use them as a basis of analysis for market trends. For example, not included in those numbers are things such as absorption rate or seller concessions and so on.

There are an infinite number of statistical models that can be used and any analysis is not exhaustive. If I've complied with the Scope of Work Rule, I've done appropriate analysis. To change that scope could change the report results. So if I am being asked to include new information, I will have to reconcile it with the original scope results and reflect any impact on my conclusions, which sounds like a new assignment. If I just tag it onto the old report and don't give it any weight, I believe that could be misleading to a secondary user, such as FNMA, home buyers or investors.

 

[Terrel L. Shields]

potential loss of client/future business

I don't consistently tolerate clients that are a PITA, hopefully eliminating them before ever doing a single job for same. But I have a low tolerance for BANK clients who don't even know what they want or how to communicate that in their SOW. They write a 10 page engagement letter knowing Fannie no longer requires an MC form and doesn't ask for one, gets a report with detailed market analysis and then come back for that piddling information? Why? They don't NEED it. They are doing it solely to delay you and have an excuse to their boss that the report isn't done because they have too many reports to vet themselves....not my problem. Good riddance.

 

[Mr Rex]

Those numbers and from the results of my search for comparables. I did not use them as a basis of analysis for market trends. For example, not included in those numbers are things such as absorption rate or seller concessions...and the 1004MC groups results differently and so on.

There are an infinite number of statistical models that can be used and any analysis is not exhaustive. If I've complied with the Scope of Work Rule, I've done appropriate analysis. To change that scope could change the report results. So if I am being asked to include new information, I will have to reconcile it with the original scope results and reflect any impact on my conclusions, which sounds like a new assignment. If I just tag it onto the old report and don't give it any weight, I believe that could be misleading to a secondary user, such as FNMA.

If the inclusion of the 1004MC could change your report results, you might want to re-think how you are reconciling, compiling and analyzing your data. So its a new assignment. Do you have to start over from scratch? Does USPAP imply that in any shape, way, or form? WTF is so onerous of this request unless you have knowledge that the 1004MC is contradictory of your opinion and you lack the ability to explain the discrepancy? Hit dog barks.

 

[Mr Rex]

I don't consistently tolerate clients that are a PITA, hopefully eliminating them before ever doing a single job for same. But I have a low tolerance for BANK clients who don't even know what they want or how to communicate that in their SOW. They write a 10 page engagement letter knowing Fannie no longer requires an MC form and doesn't ask for one, gets a report with detailed market analysis and then come back for that piddling information? Why? They don't NEED it. They are doing it solely to delay you and have an excuse to their boss that the report isn't done because they have too many reports to vet themselves....not my problem. Good riddance.

I agree. I charge for BS requests after the fact and do not tolerate PIA clients. The OP seems to not have told the whole story from where I sit.

 

[Have Laser-Will Travel]

So its a new assignment. Add a letter to the end of your file number to indicate a new assignment, add the MC and create a new workfile . You could have done it in the time it took you to post here.

That's where I'm heading but, I'm going to need a new order and the client is going to have to be advised that it could change the results of the report. So I am making careful consideration before replying to my client.

 

[Have Laser-Will Travel]

RE fannie guidelines , whether we use MC form or not, is to base neighborhood trends on the COMPS FOR THE SUBJECT, not the general market or on non relevant sales . I personally always did this, it is not just about fannie compliance, it is about credible results.

You sound like you realize your original appraisal might be misleading -If in order to get enough sales data, you ignored trends for comps for your subject, and now find out they show declining. Why was that not seen first time-- did you look at relevant listings?

. Now you are in a mess and have a tough choice, stick with your original trend of increasing but you know it is misleading ,or change it to declining per the MC form which might change your value
Changing our own value due to a better analysis does not mean it needs a new assignment btw though you can create one.

How confident are you in the MC form results ? What is the difference in value if you removed increasing time adjustments (if you made them, or applied trend from the MC form?

PS I am with CanNative on this I use the MC form because it addresses the comps particular to the subject, plus many clients still want it . WE can supplement the MC form of course with additional wider or generic market results if we want to. .

I think you are confusing an off-hand example with what I did in my report. But thank you for the tip on FNMA guidance.

 

[Mr Rex]

Why would it change the results? I can't imagine the MC changing the results unless you mis-represented the market trends. FWIW, many times the MC has indicated declining trends recently when it was simply due to the available inventory and not the actual trend in values. I really don't understand why this is so big of an issue if you analyzed and accurately described current and recent past market conditions.

 

[ramrcdk]

That's where I'm heading but, I'm going to need a new order and the client is going to have to be advised that it could change the results of the report. So I am making careful consideration before replying to my client.

Huh, ok. Guess we all do what we DO. I always complete the MC whether or not it is requested because it a handy tool that also aids in defining "the subject's market area of comparables, absorption, etc". For my reports, adding it or not would not change the report's "results" as of the date of the inspection. (UNLESS an agent added a property that was not there initially).

 

[Have Laser-Will Travel]

Since it is outside the scope of the original report I would add it, show as revised, and show that I have previously appraised the property and this is an addendum requested by the client and send a bill for $50...I don't care if the bill is $5, but the SOB is going to know its their fault not mine and if they don't pay, in the future I won't play the game...I'll bid an extra couple hundred.

IKR?