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Posts Tagged ‘Fannie Mae’
Is A Baton Rouge View Adjustment Supportable For Fannie Mae Appraisal Forms?
05/18/2011 | 
Author http://www.homeappraisalsbatonrouge.com/ – Why Do Fannie Mae Appraisal Forms Include Adjustment Grid for “View”?
Washington State Appraiser, Dave Towne, recently offered tremendous value to home appraisers by providing a copy of a list of the Top 12 FDIC Appraisal Deficiencies, see list below. In case you are not aware, the FDIC, in order recoup loses, is filing suit against AMCs (Appraisal Management Companies) and individual appraisers for questionable appraisal work that could have led to mortgage defaults. FDIC is seeking hunreds of millions of dollars in these suits.
Dave said, “Appraisers….
The FDIC has recently named a major nationwide AMC in a suit involving hundreds of defaulted properties**, claiming the AMC was deficient in the way they reviewed original appraisal reports. The suit has not gone to trial yet.
Included with the suit legal documents was this list that shows issues of concern in the original appraisal reports.
This would be a good list to use to review your own reports prior to submittal.
I personally found much satisfaction in #4 above about the applying “not reasonable, large unsupported adjustments for intangibles such as view, etc.” See this water front lot photo below.
My reply to Dave follows….
Thank you so very much, Dave!!!
I LOVE YOUR #4, about applying non-supportable adjustments for “view”. There is no such adjustment and I don’t understand why FNMA even has that in the grid. Dave, when a buyer closes on a lake lot, do they have “2″ closings, one for the site value and another separate closing for the lake view? No they don’t….and that would be insane wouldn’t it? There is no such thing as a supportable “View” adjustment. The entire value in a lot is the “Site” itself and all of the attributes of that site: land, size, view, historic trees, etc.. It all makes up the “Site Value”. And, based on what you’ve sent us, I’m not the only appraiser or regulatory agency who polices appraisers who thinks this way!
Posted in Baton Rouge Appraisal, Baton Rouge Appraisals, Baton Rouge Appraisers, Baton Rouge FHA Appraisers | 
Tags: Amc, Appraisal Management, Attributes, Baton Rouge, Deficiencies, Fannie Mae, Fdic, Home Appraisers, Intangibles, Legal Documents, Management Companies, Mortgage Defaults, Nationwide, Reply, Said Appraisers, Satisfaction, Suits, Trees, Washington State, Water Front | 
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Baton Rouge Real Estate: North Baton Rouge Housing Market 2010 Face Challenges
http://www.batonrougemarketmetrics.com/ – Baton Rouge Real Estate: North Baton Rouge Housing Market 2010 Face Challenges, 70805
I’m appraising a home on Wilmot Street, around 1,200sf, 2 bedroom, 1 bathroom. The Fannie Mae 1004MC or Market Conditions report has the appraiser examine the “Sub-Market” or those comps that are actually comparable to the subject property instead of the entire 70805 market. So, this chart below are solds since 6/2008 and current listings from $35,000 up to $90,000 for 1,000sf to 1,400sf homes.
Right off, the first trend we see is that the sales over the past year have declined from 21 7-12 months ago, 7 4-6 months ago and now only 3 sales in the past 3 months. So, sales have almost come to a halt. Absorption rate has declined from 3.5 to 1. Active Listings have increased from 21 to 37, increase of 76%. So, there is a documented oversupply. In fact, for this appraisal, there are 37 competing listings and only 31 competing sales in the past year, more listings than solds in the past 12 months. Months of Competing Housing Supply has increased from 6 to 37 months, an increase of 517%. The median comparable sales price has declinced from $59,000 to $45,000 to $39,500. The median comparable sales days on the market has increased from 83 to 173, an increase of 108%. WITH ALL OF THIS BAD NEWS AND DOCUMENTED NEGATIVE TRENDS, THE AGENTS HAVE DECIDED TO IGNORE THESE TRENDS AND LIST THE OVERSUPPLY OF LISTINGS IN THE $69,900 RANGE! SO, WHEN THESE OVERPRICED LISTINGS ARE UNDER CONTRACT, WILL THE APPRAISERS BE BLAMED FOR “LOW BALL APPRAISALS” BECAUSE THESE HOMES DON’T APPRAISE? FOOD FOR THOUGHT!
NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of June 1, 2008 to December 17, 2010. This information was extracted on 12/17/2010.
Posted in Baton Rouge Home Appraisers, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Trends | Tags: 12 Months, Absorption Rate, Appraisals, Appraisers, Association Of Realtors, Bad News, Baton Rouge Real Estate News, Comparable Sales, Comps, December 17, Face Challenges, Fannie Mae, Food For Thought, Greater Baton Rouge, Housing Market, Housing Supply, Negative Trends, North Face, Oversupply, Subject Property | No Comments »
Baton Rouge Market Metrics: Homewood Subdivision 2010 Report
http://www.batonrougemarketmetrics.com/ – Baton Rouge Market Metrics: Homewood Subdivision 2010 Report!
Homewood Subdivision is very conveniently located within the 70810 zip code and has home sizes ranging from 1,317sf up to 4,075sf, but most are in the 1,350sf to 1,500sf range. Since January 2007, home sales have ranged from $112,000 up to $178,500 with home sizes from 1,344sf up to 2,366sf. The average home is approximately 45 years old as the first filing was approved by East Baton Rouge Parish Zoning in 1959 with construction of some homes between 1961 to 1970. NOTE: There were no 2009 MLS sales in Homewood to use for comparison purposes in this blog post.
Difficult Appraisal Assignment. I’m currently appraising a home between 2,100sf and 2,200sf because of an addition, which is a very difficult assignment because most homes are 1350sf to 1500sf and the five (5) that sold in Homewood in 2010 were 1,344sf, 1,356sf, 1,364sf, 1,493sf and 1,626sf. These smaller homes mainly sold between $95/sf to $102/sf (1 REO sold or $75/sf). BUT, it would not be correct to compare homes that are 750 sq. ft. smaller than the home I’m appraising to 1,400sf homes. Nor would it be correct for an Agent to take that $95/sf to $102/sf and multiply it by subject’s 2,150sf living area to arrive at a listing price of say, $210,700. This means I have to mainly go outside of Homewood to find comparables, again, making this a very difficult assignment because there aren’t many subdivisions that compare in predominant prices and smaller sizes.
Part of the reason this larger home complicates matters in reporting is that Fannie Mae requires the 1004 MC or Market Conditions form as of March 2009 to be filled out, which reflects the “Sub-Market” comparison data. Sub-Market data would be data on both solds and listings comparable to a 2150sf home in this market, within reason and comparable to Homewood itself. As one can see above in the last 3 months, comparable home sales have plummeted, competing active listings have increased from 5 to now 12 and there’s now a “36″ month supply of competing homes on the market. 1 Year ago, there was only a 4.3 month supply. Can you see how this market is struggling now? However, BASED ONLY ON “1″ SALE IN THE CURRENT 3 MONTH PERIOD, that $160,000 sale reflected an increasing median sales price trend. I wouldn’t call it a new trend based on only 1 sale, but FNMA does and requires me to check the “increasing” property values box. Can you begin to see the difficulty in being a home appraiser within this market and assignment?
Solds In Homewood S/D from 1/2010 to 12/14/2010 revealed:
Average Sales Price: $134,500
Average Sold Price Per Sq. Ft.: $94/sf
Median Sold Price: $134,000
Number of Sales: 5
Average Number of Days On Market: 69
Low To High: $112,000 to $155,000
Number of Sold REO/Foreclosures Noted In MLS: 1
Current # Listings: 4, 1 Is A Foreclosure
Current Listings Prices: $124,900 To $270,000
Per GBRMLS, there have been two (2) REO or foreclosures in Homewood.
NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2007 to December 15, 2010. This information was extracted on 12/15/2010.
Posted in Baton Rouge Homes, Baton Rouge Houses, Baton Rouge Housing Market, Baton Rouge Real Estate | Tags: 45 Years, Appraisal Assignment, Baton Rouge Parish, Comparison Data, Comparison Purposes, East Baton Rouge, East Baton Rouge Parish, Fannie Mae, Market Comparison, Market Metrics, Mls Sales, Reason, Sf 1, Solds, Sq Ft, Zip Code | No Comments »
Appraisers In Zachary Louisiana 70791: Lake Pointe Subdivision 2010 Update
http://www.zacharylouisianarealestate.info/ – Appraisers In Zachary Louisiana 70791: Lake Pointe Subdivision 2010 Update. There’s ups and downs to report for this higher end market!
Entrance Image Source: http://lakepointezachary.com/
Solds In Lake Pointe from 1/2010 to 12/03/2010 revealed:
Average Sales Price: $271,400 ($257,700 in 2009 =’s +$5.3%)
Average Sold Price Sq. Ft.: $121/sf ($117.44/sf in 2009 =’s +3%)
Median Sold Price: $252,000 ($265,000 in 2009 =’s -4.9% Decline)
Number of Sales: 5 (5 in 2009)
Average Number of Days On Market: 158 (129 in 2009)
Low To High: $236,000 to $360,000 ($204,000 to $330,000 in 2009)
Number of Sold REO/Foreclosures Noted In MLS: 0
Current # Listings: 1, 0 Are Foreclosures
Current Listings Prices: $279,900
WHY WE RELY ON MEDIAN SALES PRICE VERSUS AVERAGE SALES PRICE?
Median Sales Price is the barometer by which the National Association of Realtors utilizes to report on national housing markets. Average Sales Price tends to take all of the home sales prices from the lowest, say $50,000, to the highest, say $1,000,000, and state the average of them all, sometimes skewing the numbers because of the extreme highs and lows. Median Sales Price tends to focus more on the middle of where the bulk of home sales prices are taking place. Generally, the Average Sales Price is going to be higher because it includes the extreme high sales prices in a given market. Fannie Mae understands the problem with using Average Sales Price and now demands home appraisers perform the 1004MC or Market Conditions form based on narrower “sub-market” parameters for comp search. This means that on a 2,000sf home, appraisers would be searching for comps with say 200sf below and above 2,000sf, say 1,800sf up to 2,200sf with similar ages and other similar characteristics.
NOTE: Based on information from the Greater Baton Rouge Association of REALTORS®\MLS for the period of January 1, 2009 to December 3, 2010. This information was extracted on 12/03/2010.
Tags: Baton Rouge Housing, Baton Rouge Housing Market, Baton Rouge Real Estate, Baton Rouge Real Estate Housing, East Baton Rouge, Greater Baton Rouge, Zachary La, Zachary Louisiana, Lake Pointe, 70791
Posted in Baton Rouge Pre-Listing Appraisals, Baton Rouge Real Estate, East Baton Rouge County Housing Market Studies, East Baton Rouge Parish, Zachary LA Real Estate 70791 | Tags: Association Of Realtors, Barometer, Comps, Extreme Highs, Fannie Mae, Foreclosures, Greater Baton Rouge, Highs And Lows, Home Appraisers, Market Entrance, Market Parameters, Median Sales Price, National Association Of Realtors, National Housing, Reo, Solds, Sq Ft, Ups, Ups And Downs, Zachary Louisiana | No Comments »
Baton Rouge MLS Area 42 Hovers Around 10% Foreclosure Rate Since October 2008
http://www.batonrougerealestatetrends.net/ – Baton Rouge MLS Area 42 Hovers Around 10% Foreclosure Rate Since October 2008 for the parameters below.
I recently performed an appraisal of a 1875sf living area home built in 1979 within MLS Area 42. As part of the appraisal and in order to complete the Fannie Mae 1004 MC section regarding REO Foreclosures history, the following chart below was created.
Based on GBRMLS in MLS Area 42 from 10/09/2008 to 10/09/2010, from 1700sf to 2050sf, $80,000 to $185,000, 3 to 4 bedrooms from 16-20 to 41-50 years, MLS revealed that 12 or 9.83% of the 122 total sales were foreclosure sales. For this appraisal, there were also “4″ competing REO or foreclosure MLS listings as well.
Here’s a video I recently created for a foreclosure appraisal within MLS Area 42.
Posted in Baton Rouge Economic News, Baton Rouge Foreclosure Auctions, Baton Rouge Housing Market, Baton Rouge Real Estate | Tags: Area 42, Baton Rouge, Bedrooms, Fannie Mae, Fannie Mae 1004, Foreclosure Appraisal, Foreclosure Listings, Foreclosure Sales, Foreclosures, Gbrmls, Mls Area, Mls Listings, Net Mls, Parameters, Reo, Www Mls | No Comments »
Greater Baton Rouge BPO Appraisals, Appraiser Assisted BPO and AVM Alternative
http://www.batonrougebpoappraisals.info/ – Greater Baton Rouge BPO Appraisals, Appraiser Assisted BPO and AVM Alternative
Welcome To The $100. 00 Greater Baton Rouge Comparable Sales Reports! Greater Baton Rouge Comparable Sales Reports Is A Desktop Appraisal Service Performed By William D. Cobb, CREA, with Accurate Valuations Group, Serving East & West Baton Rouge Parish, Northern Ascension Parish and Western Livingston Parish. William Uses An Approved Fannie Mae & Freddie Mac Appraisal Form (SSDVR) To Complete This Report.
What Is An SSDVR Report? A desktop appraisal report conducted by Louisiana State Certified Appraiser, William D. Cobb, CREA, License #R0851. Bill will drive-by the home being appraised, rely upon the physical data the client provides, research the MLS database, select the 3 most similar and competitive sales/comps and render a value opinion.
Posted in Baton Rouge Homes, Baton Rouge Houses, Baton Rouge Real Estate, Real Estate Baton Rouge | Tags: Accurate Valuations, Amp, Appraisal Form, Appraisal Report, Appraisal Service, Appraisals, Ascension Parish, Baton Rouge Parish, Bpo, Comparable Sales, Comps, Fannie Mae, Freddie Mac, Greater Baton Rouge, Livingston Parish, Louisiana State, Mls Database, West Baton Rouge, West Baton Rouge Parish | No Comments »
Greater Baton Rouge BPO Appraisals, Appraiser Assisted BPO & AVM Alternative 225-293-1500
http://www.batonrougebpoappraisals.info/ - Home Of The Greater Baton Rouge Similar Sales Desktop Valuation Reports (SSDVR) – Compliant With USPAP & Fannie Mae & Freddie Mac, 225-293-1500
Welcome To The $100. 00 Greater Baton Rouge Comparable Sales Reports! Greater Baton Rouge Comparable Sales Reports Is A Desktop Appraisal Service Performed By William D. Cobb with Accurate Valuations Group, Serving East & West Baton Rouge Parish, Northern Ascension Parish and Western Livingston Parish. William Uses An Approved Fannie Mae & Freddie Mac Appraisal Form (SSDVR) To Complete This Report.
What Is An SSDVR Report? A desktop appraisal report conducted by Louisiana State Certified Appraiser, William D. Cobb, CREA, License #R0851. Bill will drive-by the home being appraised, rely upon the physical data the client provides, research the MLS database, select the 3 most similar and competitive sales/comps and render a value opinion.
Posted in Agents In Baton Rouge, Baton Rouge Appraisal, Baton Rouge Appraisals, Baton Rouge Appraisers, Baton Rouge Divorce Appraisal, Baton Rouge Divorce Appraisals, Baton Rouge Home Appraisers, Baton Rouge Real Estate, Baton Rouge Realtor, Baton Rouge Realtors | Tags: Accurate Valuations, Amp, Appraisal Form, Appraisal Report, Appraisal Service, Appraisals, Ascension Parish, Baton Rouge Parish, Bpo, Comparable Sales, Comps, Fannie Mae, Freddie Mac, Greater Baton Rouge, Livingston Parish, Louisiana State, Mls Database, Uspap, West Baton Rouge, West Baton Rouge Parish | No Comments »
Fannie Mae Tightens Greater Baton Rouge Underwriting Criteria
http://batonrougerealestateappraisers.net/ - Fannie Mae Tightens Greater Baton Rouge Underwriting Criteria
According to the Louisiana Realtors eNews Digest, Fannie Mae is tightening underwriting guidelines. The Fannie Mae Tightens article is here!
Here’s a snippet:
“Fannie Mae is tightening its underwriting criteria by raising the minimum credit score for automated underwriting (Desktop Underwriter) from 580 to at least 620 for all loans, justified on the grounds that this action “will support prudent risk management and better ensure sustainable homeownership.” Even higher minimum credit scores may apply for both manual and automated underwriting, depending on factors such as the loan-to-value ratio and the number of units in the structure. The minimum credit score applies to all mortgage loans delivered to Fannie Mae, including FHA and other government-backed loans. Fannie is also changing the maximum debt-to-income ratio for Desktop Underwriter to 45 percent, but will allow 50 percent if there are “strong compensating factors.” Other changes are also being made. For more information, view these related Fannie Mae documents:
Fannie Mae Announcement 09-29 (PDF file) Summary and FAQs (PDF file)”
Posted in Baton Rouge Economic News, Baton Rouge FHA News, Greater Baton Rouge Economic News, Greater Baton Rouge Real Estate News | Tags: Automated Underwriting, Credit Score, Credit Scores, Debt To Income Ratio, Desktop Underwriter, Enews, Fannie Mae, Fha, Government Loans, Greater Baton Rouge, Homeownership, Information View, Louisiana Realtors, Mortgage Loans, Prudent Risk Management, Snippet | No Comments »
Attention Real Estate Appraisers: Inman News Article Out Today: Wanted: ‘Credible’ Appraisals
http://www.realestateappraisertips.info/ – Attention Real Estate Appraisers: Inman News Article Out Today: Wanted: ‘Credible’ Appraisals
In my email this morning is a new Inman News article regarding home appraisals. Here’s a snippet from the email:
“It’s the hottest topic in real estate today: The Home Valuation Code of Conduct, or HVCC, is so hot that it’s not just inflammatory. It’s on fire.
The HVCC is a new set of appraisal-related practices that lenders must follow with respect to loans they want to sell to Fannie Mae or Freddie Mac. These new practices are intended to reduce the incidence of appraisal fraud and prevent inappropriate pressure being placed on appraisers to inflate home valuations in home purchase and loan refinance transactions.”
Posted in Baton Rouge Appraisal, Baton Rouge FHA Appraisers | Tags: Code Of Conduct, Email, Fannie Mae, Fraud, Freddie Mac, Home Appraisals, Home Valuation, Home Valuations, Hvcc, Inman News, Lenders, Loans, Nbsp Nbsp Nbsp Nbsp Nbsp, News Article, News Today, Real Estate Appraisers, Snippet | No Comments »