Appraiser News - Newsletter For Real Estate Appraisers, a bi-weekly publication by Appraiser Help: April 2009

Breaking News: FHA Appraisers Required to Utilize Fannie Mae form 1004MC (Market Conditions Addendum) as of 4/1/09 for All Properties Located in Declining Markets

In Mortgagee letter 2009-09, the FHA has announced that it is requiring the use of Fannie Mae form 1004MC (Market Conditions Addendum) for all properties located in declining markets beginning April 1, 2009 (one week from today.)

This unexpected development does not leave FHA Appraisers with much time to prepare, but there is no alternative. This new form can be viewed by clicking here.

FAQs regarding this form can be found by clicking here.

As we indicated in our last newsletter, many respected appraisal organizations, schools and private firms are offering information, online classes, local classes and webinars to assist appraisers in understanding this form. Here are some links to several of their sites:

Appraisal Institute

McKissock

Ann O'Rourke's Appraisal Today

WorkingRE

President Obama Names New Head for FHA

President Obama has named David H. Stevens to become the new head of the FHA, pending Senate confirmation. Mr. Stevens most recently was president and chief operating officer of Long and Foster, a large privately owned real estate firm. Prior to this he reportedly was employed by Wells Fargo, Freddie Mac and World Savings Bank.

Mortgagee Letter 2009-08

It appears as though this mortgagee letter will impact the number of FHA appraisal assignments both positively and negatively.

Due to the continued deterioration in the housing market and the FHA's reported problems with high loan to value mortgages, effective April 1, 2009, the loan to value of any cash-out refinance may not exceed 85%. This measure is being instituted on what they refer to as a temporary basis while the FHA further analyzes the housing and mortgage industry, as well as its own portfolio.

While this first change will reduce the number of FHA loans and appraisal assignments, the mortgagee letter also has a provision for a second appraisal to be required with cash-out refinances over $417,000 in declining markets. Appraisers in many areas will see increased business as a result of this.