Additional Forms, Products & Appraisal Reports
All appraisal reports and products can be ordered to meet FHA guidelines. This includes using only Certified FHA Roster Appraisers.
The Market Conditions Addendum (Form 1004MC) enhances the transparency of the market trends and conditions conclusions. The Market Conditions Addendum is required with all one- to four-unit property appraisals performed on or after April 1, 2009. This requirement applies to loans delivered to Fannie Mae. And applies whether the loans are underwritten manually or through Desktop Underwriter®.
The report is intended to determine the amount of operating income that can be used in evaluating the applicant’s credit on applications. This is specific for conventional mortgages that are secured by one-family investment properties and all two- to four-family properties. This includes those in which the applicant occupies one of the units as a principal residence.
This report form provides the lender/client with an accurate update of a prior appraisal and/or to report a certification of completion. The appraiser must identify the service(s) provided by selecting the appropriate report type.
The appraisal report obtains the market rent for a conventional single-family investment property from the appraiser.
According to FNMA guidelines, appraisers are instructed to use the most recent version of all appraisal report forms. The appraiser needs to include any additional information. Added information can be in the form of an attachment or an addendum to the appraisal report form. This information is necessary when needing to adequately support the opinion of market value.
These forms should not limit or control the appraisal process. In fact, Fannie Mae’s appraisal report forms are provided to guide the appraisal and the process used to determine value. The appraiser’s analysis should not be limited by the standardized forms, but rather should be enhanced with additional comments and exhibits. These comments and exhibits are necessary to adequately describe the subject property, document the analysis and valuation process, or support the appraiser’s conclusions. In fact, the complexity of the appraisal assignment will be the criteria that determines the extent of the appraiser’s data collection and analysis that is inputted into the appraisal reports. See the full list of FNMA Appraisal Reports Here.