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Fannie Clarifies 1004 MC Addendum

Fannie Mae released Lender Announcement 2009-19, Miscellaneous Underwriting, Eligibility, and Property-Related Updates, which, among other things, clarifies some issues with the 1004 Market Conditions Addendum. Readers may recall that the 1004MC Addendum was released in Announcement 08-30 and went into effect earlier this year.

Says the announcement: “To add clarity, Fannie Mae has added several shaded areas to the form to recognize that all the requested data may not be available from the data sources used by the appraiser and therefore the information may not be provided. The lack of completion of these areas is acceptable as long as the appraiser provides an explanation as to why these sections of the form are not complete. However, if the data is available, the appraiser must include the data in the analysis.

Announcement 09-19 also clarifies time adjustments and modifies the requirement for “Median List-to-Sale Price Ratio”.

Comments
  1. Bucky Lewis

    It should have been up to that appraiser to turn down that assignment if he/she were not competent in that area. This is a rule in the USPAP for appraisers.

  2. David Sike

    As a Texas state certified appraiser for over 25 yrs I can identify the lack data to fill out certain areas in the 1004mc isn’t the only problem with the form. The form asks for the information on it to be supportive of conclusions made in the neighborhood section; this can be deceptive since the neighborhood data is a description of all the improvements w/in defined boundaries and the 1004mc data is only “comparable data” w/in those same boundaries.

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