Effective April 1,2009 FHA Appraisal Must Include the Fannie Mae form 1004/MC, the market conditions Addendum
Posted by Brian Collins on April 10th, 2009
In April of 2009 FHA issued a mortgagee letter to respond to declining markets. These changes go into effect for all FHA appraisals beginning April 1, 2009. This aligns the FHA appraisal requirements with Fannie Mae which also requires new reporting as of April 1.
Appraisers are currently expected to note the trend of property values. Are property values increasing, stable of declining? They are to provide conclusions as to the supply of properties in the subject neighborhood. Is there a shortage, in-balance or over supply of homes for sale? Additionally appraisers are to provide data of the marketing time for properties for sale. Is it taking under three months, three to six months or over six months to sell the property?
All appraisals performed beginning April 1,2009 must include the Fannie Mae for 1004/MC, the market conditions Addendum. This form addresses the following data points to determine the current market conditions:
At least 2 comparable sales must be within 90 days of the appraisal date
A minimum of 2 active listings or pending sales in addition to the three closed comparables
Bracketed listing using both dwelling size and sales price when possible
Adjust active listings to reflect the list to sales price ratio
Adjust pending sales to reflect contract sales price when possible
Include original list price and any revised list prices
Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales
Absorption Rate Analysis
Known or reported sales concessions on active and pending sales
Your local Wisconsin Mortgage Banker:
Brian Collins
Toll Free: (877) 240-5810 x106
brian.collins@www.madisonmortgageguys.com
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