Appraisal Resources
Appraisal Resources
FHA Adopts Fannie Mae 1004MC Market Conditions Addendum
Effective April 1, 2009, the Federal Housing Administration will require appraisers to use the Market Conditions Addendum (Fannie Mae 1004MC, Freddie Mac Form 71). According to Mortgagee Letter 2009-09 released on March 23, 2009, this will ensure greater transparency and accuracy of appraisals performed for FHA-insured financing.
Form 1004MC, The Market Conditions Addendum, requires statistical information of properties comparable to the appraised property for the previous year broken into 3 time periods, as well as analysis to evaluate whether overall trends are increasing, decreasing or stable. Additional subjective information is also requested such as whether foreclosures are a factor, whether seller-paid financial assistance is prevalent, etc.
1004MC Spreadsheet
MarketLinx has provided an Excel spreadsheet to calculate all statistical data required in 1004MC. This approach provides an efficient way for the appraiser to save the comparable data used in the appraisal for record-keeping and an efficient way to quickly address and correct any calculation changes which may be needed.
This spreadsheet will calculate statistics for up to 1000 comparables.
Download Instructions for conducting search and using the 1004MC Excel Spreadsheet.
Download 1004MC Excel Spreadsheet
*Please Note: These are detailed instructions, please carefully follow each step to achieve the best results.
Additional Form 1004MC Information
Additional information from eFannieMae.com (including a recorded training)
Learn How to Use the New Market Conditions Addendum
Gain an understanding of and recognize the sources of market information necessary to analyze market conditions. Our new recorded training is organized to address the Market Conditions Addendum (Form 1004MC), effective April 1, 2009, section by section. Also review the FAQs for additional information about the form and other appraisal topics.
View Recorded Training (link to eFannieMae.com for recorded training)
Market Conditions Addendum to the Appraisal Report
The Market Conditions Addendum (Form 1004MC) is designed to enhance the transparency of the market trends and conditions conclusions made by the appraiser. The Market Conditions Addendum will be 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, whether the loans are underwritten manually or through Desktop Underwriter®.
View Announcement 08-30 (.pdf)
Download Form 1004MC (PDF )
(.pdf, 33K, 1 page)
Use
The Market Conditions Addendum is intended to provide the lender/client with a clear and accurate understanding of the market trends and conditions prevalent in the subject neighborhood. The form provides the appraiser with a structured format to report the data and to identify more easily current market trends and conditions. The appraiser's conclusions must be reported in the "Neighborhood" section of the appraisal report.