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10 questions Fannie Mae just has not answered? There are probably more than 10, but this podcast covers only 10 of them. Maybe we appraisers have not asked the proper questions? Maybe Fannie Mae does not trust enough to give us the answers. But the point is, we appraisers have questions. Fannie Mae has answers. But she has not gone out of her way to provide them to us. So, Tim Andersen, the appraiser’s advocate raises some of them here. This is to give the good folks at Fannie Mae a good goosing – just to get them started.
10 questions Fannie Mae does not answer for for us? How about “How are we supposed to provide a floorplan when we don’t put boots in the living room?”. Technology helps us answer this question, true. But the fact is, we had to ask it. And, Fannie Mae still has not answered it (as of this podcast). Again, that technology exists, but which technology? Even some of the AMCs are on this bandwagon. Those AMCs ask us to use their software, their apps. Does that put them “in charge” of the appraisal and its reporting? USPAP makes it clear those are our responsibilities. But USPAP does not govern or constrain lenders and their helots, the AMCs.
These 10 questions Fannie Mae does not answer extend to neighborhood analysis, too. From experience, it’s likely the appraiser is already familiar with the neighborhood. But what happens when the appraiser receives an assignment in a recently-constructed subdivision? Will staying at a desk help the appraiser who is expanding into new geographical areas? How will the appraiser come to know the nuances of that new town or county?
10 questions Fannie Mae does not answer include the Selling Guide. Right now, it assumes the appraiser inspects the subject’s neighborhood. How will that be possible if the appraiser stays in the office? OK, the appraiser can get in the car and visit the new neighborhood, true. But, isn’t the purpose of a desktop appraisal to cut the time they appraiser spends outside of analyses? So, if appraisers are out inspecting neighborhoods, they are complying with Fannie Mae’s current requirements. But they are not at their desk analyzing. That’s not complying with her requirements. Therefore, is Fannie Mae going to change the Selling Guide so it is internally consistent with her adoption of desktop appraisals? When?
So many questions. 10 questions Fannie Mae just has not answered include so many more, too. Let’s hope she chooses to heed our call and then answer our questions. Thanks for listening!
I’m with you, Tim. I’ve been wondering the same things. Also, when I am looking for adverse condition and/or deficiencies, is the person who is facetiming with me through the inspection, going to be privy to my observations, and therefore, violating the confidentiality of the Client? And when this is an interested party, since there are no uninteresting parties in the transaction except the appraiser, are they going to honest with me? And how do we determine if an addition is made in a workmanlike manner to be considered GLA, when we can’t see it? And if I have to walk the home with someone to make these observations and floorplan, and then draw a interior and exterior floorplan, how is this saving anyone time? And they are going to want to reduce fees when the only time I am saving is driving time? And if, like you say, I need to drive the neighborhood, then I am not saving any time at all! In my opinion, the turn times in my neck of the woods are not going to be reduced by allowing a Desktop Appraisal, (it’s approximately 4 workdays from acceptance of an order to completion right now) and home values are so high as to be a liability to perform one, so I’m hoping these will not be a large enough portion of my work that it will be an issue. I plan to charge the same fees, too, so we’ll see if I get any requests for Desktops. I think if it gets to be a big pain the ass for the lenders, that they will be like COVID exterior appraisals, a passing fancy. I’ve been an appraiser since the late 80’s and I plan to retire before the new Fannie Mae 2024 forms come out, so good luck ya’ll!
No problems with confidentiality since the client is well aware of the measurement requirements you have. Besides, the physical characteristics of the subject are, by definition, not confidential. As to honesty, you have the right to conclude they are telling you the truth since you have no way to determine if they are, nor are they under any penalty if they lie. You also have the right to assume the stuff you can’t see (i.e., inside a wall) is properly done, since you have no way to inspect it. The “time savings” is not per appraisal. The time saving flows solely to the lender/GSE in that they will order fewer appraisals, thus decrease the number of delays. But, no, there is no time savings per appraisal. And, frankly, the big problem appraisers face now is NOT desktop appraisals or ANSI measurement standards. The rhinoceros in the living room appraisers are currently ignoring is the PAVE Task Force and how it plans to eviscerate real estate appraisal. Thanks for your comments, and enjoy your retirement!