Opinion of an Insider on the New Form
An appraiser shared the following with us which was posted on one of the appraisers’ groups.
There’s been a lot of mis-information about the new FNMA form posted so i thought i might clear the air a little bit. Being a software provider i’m in the loop but i can’t disclose every thing i know due to confidentiality. That being said i’m just the messenger and don’t shoot the messenger.
- the new form is not to put appraisers out of business. if they weren’t providing the new form, then i’d be worried.
- the previous forms were designed for a typewriter. I remember as a little kid my grand dad taking me to his cousins house who was the local appraiser and his typist was typing a report with carbon paper. That is what the forms have always been designed for.
- so the reason for the new form is three fold.
- mismo doesn’t contain any info from your narrative addendum. so when a lender imports the mismo they don’t see your narrative and that’s where the revision request comes from, that is already explained in your narrative. the mismo does contain a copy of your report pdf but that would take extra time for the lender to pull that up and actually read it. i don’t know about you, but my narrative has grown from 1 page to over 4 pages in the past 15 years for a cookie cutter, so it’s hard for the end user to find what i’m telling them.
- the new form will be up to date technology which allows the form to expand based on selections you make in the report. for example, if you select a checkbox for ADU then a comment box will open right below the ADU where you can explain. this goes for many, many sections of the new form. This way your narrative addendum will shrink dramatically and these new comment sections will be transmitted in mismo 3.x where the end user can find your comments. No more will you get a revision, it’s not in the report.
- by having only one form the sections that are common to the other forms, ie. subject/owner section, lender section, neighborhood will remain similar. if the income checkbox is selected then a dynamic section will pop open where you can enter the income info.
all of this will be handled by your software, you will only have to learn the new form and it is much prettier and easier to navigate for the end user, which should reduce your revisions.
lastly, i know many of you are reluctant to give up your clipboards. i get it. but the new form is going to require you to gather many more detailed data points about the subject. so many more, it’s going to be nearly impossible to gather the data points, scribble them down and not forget some. remember i’m just the messenger.
I’m telling this so you will have time to look into going mobile. from what i’ve seen, i don’t see how you can not have a mobile device to cover all the bases for the subject inspection. Not just my opinion, i’ve talked to other software people and we all have the same opinion.
so my goal in all of this, is to tell you not to panic and start looking into going mobile before it’s too late. i don’t know the exact launch date but it’s not too far in the future.
one last thing, the trick to using a mobile inspection tool is to setup your template for the property type you are inspecting. for example, i’m setting up a template for xyz neighborhood where the majority of the houses all have cent a/c, brick veneer, comp shingles, dishwasher, etc. have all these boxes prechecked / selected where all you have to do is change the ones that are different instead of going through every single field. that takes forever.
Again, i’m just the messenger and don’t shoot the messenger.
- FHFA’s Appraisal Waivers Expansion - October 29, 2024
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What’s the purpose in making the appraiser collect more information (data points) about the subject in the future, when other parties aren’t even meeting the appraisers standards of today? Having a single set of data inputs is meaningless unless other parties also start identifying such expanded characteristics. Hell, I want agents to stop putting in unknow for AC, start putting in fireplace instead of leaving it blank, provide a beneficial view label in the correct box instead of adding a comment in the general remarks section, start putting in pictures of every room and to identify beneficial and adverse features, etc., etc., etc.
More work for those virtual assistants in the Philippines yea coach.
Seek the truth.
“…but the new form is going to require you to gather many more detailed data points about the subject…”
The fallacy that more information equals a better valuation.
I’m sure we will get a big raise for all the new data we collect…
This is the reason I no longer work for Banks. As far as software geek types, I’ll keep my clipboard. The only reports I do are GPAR and narrative, I decided I don’t want my name on anything the government is involved with.
Soooo – didn’t MANY Medical Doctors leave their profession and close their practices when they spent more time with the Laptop in the exam room than actually paying attention to the Patient? Has Health care gotten (especially in “under served” areas, the new buzz word) BETTER in 2021? Data doesn’t necessarily demonstrate a Property’s intangibles and if we are spending all of our time staring at “mobile devices” instead of talking to Homeowners to get history and observing actual features instead of “data points” – this makes the Valuation better and more reliable? Maybe on “cookie cutters” but in Rural areas – we don’t get the “cookie cutter” properties any longer, only the ones for which the Computer can’t produce an AVM . Food for thought.
Not trying to be pessimistic or go off topic however with all the economic uncertainty, increasing interest rates, the fact a large percentage of Americans are in some form of foreclosure and we still have a deficient inventory of available properties does it make any sense the GSEs are issuing more and more property waivers which is resulting in unchecked increasing property values? We have a proliferation of scamming bifurcation appraisals along with the dumbing down of the appraisal profession does anyone else see a pattern of stupidity going on here? Since the GSEs are in government control what types of manipulation is going on here? This is mass market manipulation! What is going to happen when all these people who purchased or refinanced their properties with no appraisal, loose their income and now cant refi because rates have gone up? If they try to sell they will have to compete with a tidal wave of forecloses! I’m thinking this is the next pandemic being brought to Americans thanks to our friends at the government! Just something to ponder! In the mean time lets distract appraisers with unwarranted form changes so Fannie Mae can collect more of our data! Thanks!
Enter RESO. We are on the global stage now and the intention of RESO real estates standards organization is to consolidate all American real estate data terminology into a globally acceptable format. The RESO dictionary is now god, and all previous references and laymen understanding of real estate terminology are deemed antiquated. Won’t be long now before your regular American family will have to compete with the entire world of investors to attempt and purchase a property. The local bureaucracies and complexities in navigating local property data, relayed a thousand different ways in a thousand different municipalities has so far protected American property interests from an entire planet of carpetbaggers. That is about to change.
Mobile devices are trash, future ewaste. Put the environment first instead, say no to green tech and say no to mobile devices for the sake of our planet and the people whom live on it. There are literally a million articles and hundreds of millions of people concerned about this, desperately pleading for less electronic device use, not more. Promoting more mobile devices is the height of environmental irresponsibility.
https://www.earthtouchnews.com/conservation/human-impact/agbogbloshie-welcome-to-the-worlds-digital-dumping-ground-part-1/
https://www.dailymail.co.uk/home/moslive/article-1350811/In-China-true-cost-Britains-clean-green-wind-power-experiment-Pollution-disastrous-scale.html
https://blogs.ei.columbia.edu/2018/08/27/growing-e-waste-problem/
https://envibrary.com/electronic-pollution/
Certainly MISMO anticipated packaging for global investors. Not sure how RESO would fit in if at all. ALL real estate is local. Regardless of who the buyers are. It must compete first locally.
If out of country, UNINTENDED users plan to rely on an American appraisal then they should understand it is prepared in accordance with OUR laws. Not some Indian Circle Rate or similarly irrelevant CCP or Middle Eastern metric.
TAF has engaged in many just plain dumb pursuits over the years, but the pretense that meaningful IVS can be credibly developed is plain hubris. It may also be somewhat racist. Applying metrics of value to cultures that simply do not measure the market value the same way we do (such as the Circle Rates cited above). Doing so in nations where ‘gifts’ are still commonly required to produce desired end results won’t produce a market value. Not at least one as we understand it.
Yep!!!
Very much looking forward to moving on from the stone age. This is what should have been done in 05.
Whoops, posted in wrong thread.
How many more data points are needed to state HwdFloors/Avg etc. I like writing w/my clipboard, writing stuff down helps me remember, one reason I still use an appointment book, and never got a palm pilot when they were the fad in the early 2000’s , how long did those last. I foresee a debacle when they roll this out as many appraisers are older, will get frustrated and get out of bank work.
Ready, Aim, FIRE!
Kidding. Expandable comment options are nice. Very sensible in fact. That’s about it though.
One minor correction. It isn’t going to become ‘necessary’ for me to gather sufficient SALIENT data concerning a subject in order to complete a USPAP compliant real estate appraisal. I have been doing it for decades now. It MAY become a consideration for a much higher fee …IF I choose to become a FNMA/MISMO data aggregator in addition to being a general certified real estate appraiser.
I have not made a decision on that yet. FNMA is such a small part of my daily business, I’m not convinced they are worth the effort. Increasingly, they seem to think their CU system is a viable review product that appraisers should respond to just as if it were an intelligent, relevant & competently originated review request.
It’s not.