Tagged: 1073

Appraisal news for real estate appraisers and real estate professionals regarding Individual Condominium Unit Appraisal Report, Fannie Mae Form 1073. News relating to the Appraisal Industry.

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Safe Room Adjustment in Appraisals

Use of a Safe Room has Increased by Property Owners Appraisers, If you’re doing a standard 1004 SFR, or 1073 condo (or perhaps a Co-op), report and encounter a “Safe Room“, you might need to add that to one of the extra adjustable component lines on the grid. The trick however, is how do you determine the value of such a safe room and apply a proper adjustment? I suspect they vary in size, interior amenities, vault door construction, and bazooka stopping power of their perimeter wall structure. I dunno! If encountered, I think I’d call Jonathan Miller, who is...

Enhancements to Collateral Underwriter (CU) Are Coming - Imagecredit Flickr - Alan Levine 4

CU “Enhancements” Are Coming

CU risk score, flags and messages Appraisers, In about 6 weeks, Fannie Mae will make available to LENDERS only, and probably by default indirectly, to their AMC agents, enhancements or improvements (in their opinion) to the Collateral Underwriter electronic review process. None of the Collateral Underwriter background info,  especially about Fannie Mae’s ‘additional comps’ selection process, is shared directly with appraisers.  But when these are returned to appraisers in the form of a Quality Assurance request from the lender or AMC, appraisers are expected to drop everything and immediately review those for applicability in the appraisal report. Pay attention to the...

Condo Density Primer 2

Condo Density Primer

Many appraisers still seem confused as to what the form means by density. In the project section of Fannie Mae form 1073 the first line addresses topography, size, density and view. Many appraisers still seem confused as to what the form means by density. Appraisers enter and AMCs approve phrases like: average or typical or even a calculation such as 50 units / 12,975 square feet. Appendix D regarding UAD reporting offers no guidance. What are they asking for and what does it mean? Fannie is looking to see if the existing density can be rebuilt following a catastrophic loss....

1st Enforcement of C&R Fee Provision Louisiana Makes History - Imagecredit Flickr - Roland Tanglao 5

Louisiana Makes History – C&R Fee

First Enforcement of C&R Fee Provision: Louisiana Makes History Nearly five years after Dodd-Frank set forth rules regarding Customary & Reasonable fees (C&R) for appraisers, an agreement last week between a state board and an Appraisal Management Company (AMC) is the first evidence of enforcement. The bottom line for appraisers is that they may be finally on their way back to customary and reasonable fees. On June 4, 2015, the Louisiana Real Estate Appraisers Board (LREAB) issued a Stipulations and Order Memorandum (SOM) wherein Coester Appraisal Management Group, also known as Coester VMS, offers no admission of guilt but agrees...

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Cost Approach Required for USDA Condo Appraisals

Appraisers, New written instructions published by USDA ‘require’ a COST APPROACH for the condo being appraised. Interestingly, the pre-printed 1073 Form has NO PLACE on it to complete a Cost Approach – for good reason! While not impossible, it would be extraordinarily difficult to calculate a CA for a typical condo in a multi-unit building, without supporting documentation and a gigantic pile of cost info for the various components. And in fact, appraiser’s certification #4 on the 1073 form says that neither a Cost Approach nor an Income Approach are included unless the appraiser considers them necessary to arrive at a...

Census Tract as Neighborhood Boundaries in Appraising 2

Census Tracts & Appraising

CENSUS TRACTS are based primarily on POPULATION density… The latest ‘buzz word’ in our profession is an indication from Fannie Mae that as of Jan. 26, 2015, their Collateral Underwriter electronic review software (made available only to Lenders/AMC’s for 1004 and 1073 reports)  will be able to compare your report info to other property reports and data narrowed down to a local CENSUS TRACT. In my previous messages, I’ve asked a basic question: When’s the last time you actually researched comparable sales or other property info based around local CENSUS TRACTS? I would guess for the vast majority of (residential)...

Fannie Mae Claims the CU Process Will Improve Appraisals 5

CU Process Will Improve Appraisals? A Pipedream or Reality?

Fannie Mae Claims the CU Process Will “Improve Appraisals.” A Pipedream or Reality? Appraisers, A few days ago, I watched the FNMA eLearning webinar “Introduction to CU” video showing how their new Collateral Underwriter will be implemented, starting on Jan. 26, 2015, applying to 1004 and 1073 Reports (initially). You really should watch this also!  CU applies to FANNIE MAE only; FreddieMac, VA, FHA, USDA are not involved at this time. Click this link, and you’ll find the link to the video ½ way down on the left. I captured a few screen shots of their presentation to help explain...

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Collateral Underwriter White Paper

Fannie Mae’s Collateral Underwriter – Industry Update White Paper Folks, I just found this document (PDF attached) written primarily from a ‘lender’ perspective about the upcoming Collateral Underwriter (CU), which applies only to 1004 and 1073 form reports effective Jan. 26, 2015…but probably will be carried over to the 2055 and 1075 form reports after the initial shake out cruise. 13 pages – will help you understand what FNMA will be looking for in terms of appraisal report QC functions performed by AMC’s, and the lender’s appraisal review departments.  Knowing what they will be checking will help you avoid those...

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What’s Going on With Fannie Mae’s Collateral Underwriter?

The recent announcement that Fannie Mae will expose its sellers to the Collateral Underwriter™ (CU™) appraisal review tool has appraisers wondering if the process will affect their current and future appraisals and even present problems for past appraisals. Well, from the appraiser perspective, the short answer is you probably won’t notice much difference when this change takes place in January 2015. Fannie Mae’s Collateral Underwriter appraisal review process is not a new concept. This is the same tool that Fannie Mae has been using internally to review appraisals submitted to the Uniform Collateral Data Portal® (UCDP®). Receiving the appraisals as...

Fannie Mae "CU" Scoring is a Danger for Appraisers 5

Fannie Mae “CU” Scoring is a Danger for Appraisers

Appraisers, Many know by now that the GSE’s, primarily Fannie Mae, have instituted a new ‘appraisal scoring’ procedure based on an electronic read of your reports, specifically on a SFR 1004 or the Condo 1073. Those are the only forms currently being analyzed by the CU process. On Nov. 18, 2014, FNMA released a document named “UCDP Fannie Mae Appraisal Messaging Change Notification” which you can find here. I encourage all appraisers to actually read this document … all 11 pages. When you do read this document, you will learn that your reports are being compared to your peer’s reports, and...

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