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Form forum: appraisers speak out about Fannie Mae's new addendum form 1004MC.

Article Excerpt
As of April 1, Fannie Mae began requiring appraisers to complete its new Form 1004MC in connection with all appraisals of one- to four-unit residential properties. The form is intended to provide lenders with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood.

According to Fannie Mae, the form provides appraisers with a structured format to report data and allows for easy identification of current market trends and conditions. Many appraisers have voiced serious concerns with respect to the conflicting directions given by Fannie Mae regarding the addendum and the additional strain of the research and analysis.

To get a better understanding of how residential appraisers are reacting to the new requirement, Valuation asked several Appraisal Institute members from around the country to share their initial experiences using the form. Here is what they had to say.

Alan Hummel, SRA

St. Paul, Minnesota

The mandate to include Form 1004MC in appraisals is unfortunate, yet understandable. It's unfair to expect a specific standardized format to be used nationally and anticipate that all appraisers will be able to capture meaningful data exactly as prescribed, given that markets are diverse in their data availability as well as data storage and retrieval technology. It is understandable, and a reasonable expectation of users of appraisals, that they should receive meaningful support for an appraiser's opinion as to market trends. Like many appraisers, Forsythe Appraisals has been providing data in narrative and graphical form in support of their trends opinions long before...

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