Hi Kris,

Thanks for posting this great information.  I've been wondering, for quite some time now, how lenders were identifying properties that were in declining markets.  I'm not at all sure what Countrywide is using as a data source, in order to establish their categories...but am happy that there is at least something out there that demystifies the declining market situation, a little bit, even if it is just with one lending source.

In fact, I was specifically looking for information on Countrywide's new(er) appraisal policies, so I did a Google search on the phrase, "countrywide, appraisal policy" with your post being the second organic search result overall.

That said, I do wonder about a few things.  Maybe, as time goes on--and more people become aware of the issue, and your post--there will be some answers.  I'm wondering:

1)  What is the ultimate data source on establishing what property is in a declining market?

2)  Are they only concentrating on larger urban markets?  I wonder this, because that's the way it is looking for Wisconsin...when I know full well that several small towns/cities within my trade area have had far more in the way of problems with declining values than--for instance--Madison, Wisconsin.  Are those smaller communities not going to be affected?

3)  For "Soft Market Category 1-3 Loans" how are they determining if there is an "Oversupply" of property?

4)  For "Soft Market Category 1-3 Loans" how are they determining if there is a "Marketing Time Over Six Months"?  This one could be very interesting, depending on how marketing time is interpreted.  What if the seller has changed listing agencies, but the cumulative marketing time is nine months...four with one company, five with the other?  What if the property has been listed and expired out to make it appear fresher on the marketplace...say every four months?

One thing seems certain, to me--and I don't list property or represent sellers...all I do is work for home buyers--listing agents need to be excruciatingly aware of this "Marketing Time" qualification...and be advising sellers to price their properties as correctly as possible, or their sellers may be cutting their own throats with lower downpayment buyers who can't afford to pony up an extra five percent down.

I think a lot of people--sellers, listing agents...and lower downpayment buyers--may be in for some very unpleasant surprises, with this marketing time over six months adjustment bugaboo.

Thanks, again, for putting this information out there.

Jay Reifert, Broker/Owner  --  Excel-Exclusive Buyer Agency  --  Madison, Wisconsin

As I looked over the information again, a few minutes after sending my message above, I did notice that the article mentioned, "Counties".  In looking at the chart, though, it showed cities.  That said, the chart does start each line category with the term "MSA" which I'm figuring either stands for Market Service Area or Metropolitan Service Area...or something of the like.

So, with that in mind, here are a couple more questions:

1)  What does "MSA" mean?

2)  What defines an "MSA"?  Is it a county, or something more nebulous?

Jay Reifert, Broker/Owner  --  Excel-Exclusive Buyer Agency  --  Madison, Wisconsin

Guess I should have done a bit more research before asking.  "MSA" is Metropolitan Statistical Area.  Here's a link that helps explain...

http://en.wikipedia.org/wiki/United_States_metropolitan_area

I'm still trying to find out more about how far the Madison, Wisconsin MSA extends.  I see it on the map, but that doesn't tell me all that I want to know.

[Not that it will matter to any outside of Wisconsin...but, I found this after I had originally posted this message:  http://dwd.wisconsin.gov/oea/msa_map.htm ]

Jay Reifert, Broker/Owner  --  Excel-Exclusive Buyer Agency  --  Madison, Wisconsin