Appraisers do it better — using market trends to support opinion of value

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There have been a lot of big announcements in the last few months regarding investor requirements for market trending analysis. USPAP, Fannie, and Freddie are all adamant that appraisers still have to document market trends and neighborhood conditions, but haven't really spelled out what they require to be documented.  

When speaking with appraisers, there was some initial confusion on what was considered a market analysis. A lot of appraisers equate that term with what realtors provide to their customers, but in reality, the term market analysis means so much more.

Shaping the future of market analysis

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Today’s post comes from Rebekah Champagne. With nearly two decades of experience in the mortgage industry, Rebekah now serves as one of a la mode's Product Marketing Managers.


You've probably heard by now, Fannie Mae made the official announcement August 7, 2018, that they would no longer require the 1004MC. Most appraisers (and lenders) saw this as a win, as they hated the form from the get-go. Fannie finally agreed but was quick to call attention to the fact that the appraiser will still be required to analyze market and neighborhood conditions. While flawed, the form still came with good intentions — getting true market analysis displayed in appraisals. 

So, what's next? Well, Freddie Mac and the other investors haven't changed their requirements yet. It's been crickets since the big announcement with the lenders too. So even though Fannie said adieu, you haven't quite seen the end of your favorite form. And it's likely most lenders will still require it until an alternative approach has been approved. 

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