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Updated info from Fannie Mae about a declining market

By Jeremy Cowin

Real Estate Appraiser with Jeremy Cowin Appraisals

July 24, 2007 10:20 AM

I just received a document from the NAREA that was put out by Fannie Mae and it is about the new requirements of lenders responsibilities and Appraiser Responsibilities in a declining market.

The document can be read at: www.efanniemae.com On the RIGHT HAND side of the Home Page is a section *HIGHLIGHTS. Click on "View Latest Lender Announcement" and click on "Ann. 07-11. The name of the document is "Collateral Valuation Pracitces and Decling Markets." It is available as a PDF so you can keep a copy for yourself.

It is not exciting reading, but provides useful info and a general guidenance on resources for lenders, underwriters and appraisers and proper disclosure and responsibilities we all have in a declining market.

Hope this is helpful info for you.

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Chuck Christensen

Your Financial Coach - Bellingham, WA

thanks fopr the tip

Jul 24, 2007 10:29 AM

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Puts a chill down your spine, doesn't it?

But, not unexpected.

Jul 24, 2007 10:48 AM

Sara Goodwin

Estimation Nation Corporation - Portland, OR

Portland, Oregon Appraiser

Thanks for the information, Jeremy!

Here is the direct link for those of you who are as lazy as I am :-)

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2007/0711.pdf

This I found interesting:

The subject property has been identified as being located in either an area of declining home prices or in an area where it may be difficult to assess home values. The lender should carefully review the appraisal to ensure that the appraiser has appropriately analyzed property value trends and overall market conditions to arrive at the value provided. The lender should request additional support from the appraiser if it determines that the appraisal does not accurately reflect current market conditions (e.g. the declining property values field is not checked when market conditions suggest otherwise.) Please refer to our Property and Appraisal Guidelines in Part XI of the Selling Guide.

I am fortunate enough to live in an area where most of the market is still increasing, but my Underwriters often don't live in or know about the same market, so I always post the current market conditions as per our local mls reports.

Jul 24, 2007 04:37 PM

Robert Elfand

Oviedo, FL

RAA

In our area, there are some areas that have stabilized and some that are decreasing. A good number of appraisals that I review/see have the increasing box checked and canned comments stating how quickly the market is moving? Is it laziness or uneducated ignorance? hmmm...

Jul 25, 2007 01:05 AM

Matt Lemansky, Certified Residential Appraiser, SoCal

Matthew J. Lemansky, CREA - Long Beach, CA

Downloaded and printed it the other day...good information to have.

Jul 27, 2007 10:51 AM

Updated info from Fannie Mae about a declining market

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Jeremy Cowin

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