1004mc

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Data from the 1004MC "support the conclusions in the neighborhood section" of the URAR.  (FNMA Training Video, slide 21, 2009).  Data included on the 1004MC are from the entire neighborhood as defined on page 1 of the report.

 

1004mc Matches Page 1 (not page 2)

Data on page 2 "should usually correlate to the results" of the 1004MC.  (FNMA Training Video, slide 23, 2009).  The data on the top of page two are actual comparable sales and listings.  Correlation is a "statistical relation between two or more variables such that systematic changes in the value of one variable are accompanied by systematic changes in the other" (neighborhood properties on page 1 vs. comparable properties on page 2).  It is impossible for correlated values to be equal; therefore, page 2 can never match the 1004MC without one or the other (or both) being statistically unreliable.

 

Sources:  FNMA training video further supported by the HUD 4000.1 manual, 12/30/2016, page 536, paragraph 11(b).

 

FHA 1004mc Matches Page 1 (not page 2)

The Appraiser must analyze the broad market area first (neighborhood analysis), then

analyze the specific market (direct sales comparison), and then report how the subject relates to its market area. (4000.1 Manual, page 536)

 

Page 2 of the report reflects comparable sales in the neighborhood.  There are insufficient comparable sales for a meaningful market trends analysis using only comparable sales.

 

Modified:  11/20/2018

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